The unaudited interim condensed consolidated financial statements and related management's discussion and analysis ('MD&A') are available at www.sedar.com and www.alturaenergy.ca. Selected financial and operating information for the three and six months ended
SECOND QUARTER 2020 REVIEW
Production volumes averaged 435 boe per day in the second quarter, a 65% decrease from the first quarter of 2020. Production in the quarter was impacted by Altura's voluntary production curtailment of approximately 700 boe per day in response to the severe decline in crude oil prices caused by the COVID-19 pandemic and
Altura's realized heavy oil price decreased 35% to
The Corporation realized a gain on financial instruments of
Operating expenses in the second quarter were
The Corporation's operating netback1 averaged
Adjusted funds flow1 was
Altura received
Altura recorded a net loss of
On
Altura's net debt1 was
CREDIT FACILITY RENEWAL
In August, Altura and its lender completed the redetermination of its revolving operating demand loan (the 'Operating Loan') and the borrowing base was confirmed at
The Term Loan is a non-revolving term facility to be used exclusively to provide additional liquidity to finance Altura's business operations. It has a five-year maturity with no less than 50% of amounts outstanding due on
The interest rate on the Credit Facilities is the Lender's prime rate plus 4.5 percent per annum. Please refer to Altura's second quarter of 2020 MD&A and financial statements for additional information on the Credit Facilities.
ABOUT
Altura is a junior oil and gas exploration, development and production company with operations in central
Forward-looking Information and Statements
This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words 'expect', 'anticipate', 'budget', 'forecast', 'continue', 'estimate', 'objective', 'ongoing', 'may', 'will', 'project', 'should', 'believe', 'plans', 'intends', 'strategy' and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to: uncertainty about the COVID-19 pandemic and the impact it will have on Altura's operations, the demand for Altura's products, and economic activity in general; Altura's plan to bring on three shut-in Leduc-Woodbend wells by mid-September; forecasted production volumes to range between 1,000 and 1,100 boe per day for the second half of 2020; the expected closing of three additional dispositions of a 1.375% working interest for
The forward-looking information and statements contained in this press release reflect several material factors and expectations and assumptions of Altura including, without limitation: the continued performance of Altura's oil and gas properties in a manner consistent with its past experiences; that Altura will continue to conduct its operations in a manner consistent with past operations; the return of industry conditions to pre-COVID-19 levels; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; the accuracy of the estimates of Altura's reserves and resource volumes; certain commodity price and other cost assumptions; the continued availability of oilfield services and the continued availability of adequate debt and equity financing and cash flow from operations to, among other things, fund its planned expenditures.
Altura believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable based on prior operating history but no assurance can be given that these factors, expectations and assumptions will prove to be correct particularly in the current operating environment which is unprecedented by any standard. To the extent that any forward-looking information contained herein may be considered future oriented financial information or a financial outlook, such information has been included to provide readers with an understanding of management's assumptions used for budgeted and developing future plans and readers are cautioned that the information may not be appropriate for other purposes.
Contact:
Tel: (403) 984-5197
Web: www.alturaenergy.ca
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