Finance & Investing | Fundraising | Capital Markets
Arsenal Energy's Credit Facility Approved at $55 Million
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Arsenal Energy Inc. announces that its syndicate of lenders has completed its semi-annual review of the Company's Credit Facility. The lenders have approved a facility of $55.0 million consisting of a $30.0 million conforming Extendible Syndicated Credit Facility, a $10.0 million Extendible Operating Facility and a $15.0 million Supplemental Facility. Arsenal is currently drawn at approximately $51 million on its credit facility.
The Company is currently providing information and data to its independent petroleum engineer and expects the results of the evaluation to be available in mid-February 2016. The new independent petroleum engineering report will form the basis for the annual borrowing base review to be completed by May 31, 2016.
During Q4 2015, the Company fulfilled the remaining expenditure commitments under the terms of the flow-through shares issued in 2014. The Company drilled five gross (4.4 net) wells in the quarter. Preliminary indicated results are 1.7 net oil wells, 1.7 net natural gas wells and one net dry and abandoned.
Given the Company's financial position and current low oil prices, the Company is suspending further dividend payments. In addition, capital spending in the first six months of 2016 is expected to be restricted to the tie in of four gross (3.4 net) wells at Princess, Alberta and the equipping of six gross (0.9 net) wells at Lindahl in North Dakota. The Company has reduced general and administrative expenses by 20% in 2015 and expects to reduce these expenses by a further 20% in 2016.
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