Journey Energy Inc. reported that it has entered into an agreement with its shareholder and term debt provider, Alberta Investment Management Corporation ("AIMCo"), to extend the maturity of its term debt repayments. Previously, there was a balloon payment on April 30, 2024 for $24.7 million and a second one on October 31, 2024 for $19.1 million. These repayments will now be subject to a much smaller balloon payment with the balance being amortized over monthly amounts.

For the first maturity in April, $12.7 million of principal will be paid on April 30, 2024 and then repayments of $1.0 million per month (plus accrued interest) will be paid from May 2024 to April of 2025. For the second maturity in October, $10.1 million will be repaid on October 31, 2024 and then six monthly payments of $1.5 million (plus accrued interest) will be made from November of 2024 to April of 2025. This new repayment schedule is aligned with Journey's current repayment commitment to Enerplus Corporation under the vendor-take-back ("VTB") obligation from the acquisition in October of 2022.

The repayments under the VTB are sensitive to the price of WTI oil and Journey has reduced the principal amount from the initial $45.0 million to a currently outstanding amount of $17.0 million. Journey currently expects that the VTB will be fully repaid on September 4, 2024 based on forecast WTI prices. This repayment date aligns with the start of repayments for the second tranche of AIMCo debt of $1.5 million, which begins on October 31, 2024.