By Adriano Marchese

Bonterra Energy Corp. said Friday that it has reduced the nonrevolving term loan portion of its credit facility, and that it expects its lenders will agree to a further reduction at its semiannual review in November.

The Canadian oil-and-gas company said that it has agreed with its syndicate of lenders to amend the credit facility with a borrowing base of 265 million Canadian dollars (US$215 million), consisting of C$200 million revolving credit facility and a C$65 million nonrevolving term loan.

The company said this represents a significant reduction in its nonrevolving term loan from C$150 million, improving its financial flexibility.

Bonterra said that it anticipates a further reduction of the nonrevolving term loan portion to around C$30 million at its semiannual review in November, as it seeks to move all its bank debt to a fully conforming revolving credit facility.

The company said it anticipates generating higher free cash flow as its production increases and commodity pricing improves.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

06-25-21 0802ET