Paramount Resources Ltd. announces the closing of the annual renewal of its bank credit facility.
The revolving period of the Facility has been extended to April 28, 2017 and the maturity date has been extended to April 28, 2018. Commitments under the renewed Facility are $350 million, with a scheduled step-down to $300 million on the earlier of October 31, 2016, or the occurrence of certain events that generate additional liquidity. Paramount continues to have no financial maintenance covenants under the terms of the Facility.
The Company continues to execute its debt reduction strategy, including non-core asset sales, a disciplined capital program and ongoing initiatives to further improve efficiencies and control costs. Paramount has reduced net debt by 32 percent to approximately $1.3 billion at April 30, 2016 from $1.9 billion at December 31, 2015.
As of June 9, 2016, approximately $148 million was drawn on the Facility. The Company recently received back and cancelled approximately $102 million of its undrawn letters of credit. As a result, the Company's outstanding letters of credit have been reduced to approximately $59 million at June 9, 2016 from $152 million at April 30, 2016.
Paramount continues to maintain sufficient liquidity to support its activities. The Company's 2016 capital program remains flexible and activity levels will be adjusted depending on commodity prices and other factors. The Company expects to fund its 2016 operations, obligations and capital expenditures with drawings on the Facility, funds flow from operations, proceeds from non-core asset sales and by accessing capital markets, if required.
Related Categories :
Redetermination/Borrowing base
More Redetermination/Borrowing base News
-
Earthstone Energy's Credit Line Increased 21% to $1.7B
-
Silverbow's Borrowing Base Increased 48% to $775 Million
-
Amplify Energy's Borrowing Base Reaffirmed at $225MM
-
Northern Oil's Borrowing Base Raised Over 50% to $1.3 Billion
-
Earthstone's Credit Line Increased 6% to $1.4 Billion
Canada News >>>
-
Large Permian E&P Cuts Capex;Outlines New D&C Plans, 2024
-
Petrus Resources Ltd. First Quarter 2023 Results
-
Cardinal Energy Ltd. First Quarter 2023 Results
-
Headwater Exploration Inc. First Quarter 2023 Results -
-
Rubellite Energy Inc. First Quarter 2023 Results