ASSET DISPOSITION
As disclosed in the Corporation's
Disposition | Closing Dates |
Status | Disposition Interest | Cash Proceeds | |
First Transaction | Closed | 7.0000% | |||
Second Transaction | |||||
Stage 1 | Closed | 1.3750% | |||
Stage 2 | Closed | 1.3750% | |||
Stage 3a | Closed | 0.6875% | |||
Stage 3b | Closed | 0.6875% | |||
Stage 4 | Closed | 1.3750% | |||
Total | 12.5000% | ||||
The cash proceeds from the asset sales strengthen the Corporation's financial position and flexibility to continue development of the Rex pool at Leduc-Woodbend.
OPERATIONAL UPDATE
The 102/16-14-049-26W4 Rex horizontal well ("16-14") that was completed in
Altura is planning to drill one well mid-July and a second well in September at Leduc-Woodbend. Altura will continue to improve upon its extended reach horizontal well design by increasing the lateral length in the first well from 2,000 to 2,300 meters (a 15% increase). This extension will again increase the total number of fracs for the well from 74 to 85. The wells are scheduled to commence production in August and
Previous success with longer horizontal laterals and increased frac stages in the Rex pool illustrates improved production rates and reserve capture. The optimization of longer lateral length is expected to result in even greater well performance and reduce the number of required wells and capital required to develop the remainder of the Rex pool.
CREDIT FACILITIES RENEWAL
In June, Altura and its lender completed the redetermination of its revolving operating demand loan (the "Operating Loan") and the term loan (the "Term Loan") collectively the ("Credit Facilities"). The Operating Loan was redetermined to
The interest rate on the Credit Facilities was decreased by 1.0% to the Lender's prime rate plus 3.5% per annum which is approximately 5.95%, down from 6.95%. In addition, the hedging covenant was amended from 30% of forecasted production based on the proved developed producing reserves to 350 bbl/d of WCS oil and 1,000 GJ/d of natural gas (AECO) for no less than the succeeding nine-month period, on a rolling basis.
With forecasted net debt of
ABOUT
Altura is a junior oil and gas exploration, development and production company with operations in central Alberta. Altura predominantly produces from the Rex member in the Upper Mannville group and is focused on delivering per share growth and attractive shareholder returns through a combination of organic growth and strategic acquisitions.
READER ADVISORIES
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:
- the 2021 capital expenditure plans to drill and bring two (1.8 net) new wells on production in August and
October 2021 ; - forecasted net debt of
$1.9 million atJune 30, 2021 ; - the Corporation's ability to self-fund growth within cash flow and maintain a strong balance sheet with current commodity prices; and
- the scheduled Credit Facilities renewal date of
May 31, 2022 . - 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.
The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation:
- the COVID-19 pandemic and related disruptions in oil and gas markets, including the duration and impacts thereof;
- changes in commodity prices including, without limitation, as a result of COVID-19 pandemic;
- changes in commodity prices including, without limitation, as a result of the COVID-19 pandemic and related disruptions in oil and gas markets;
- unanticipated operating results or production declines;
- public health crises, such as the recent outbreak of COVID-19 and the related economic disruption that can result in volatility in financial markets, disruption to global supply chains, and the ability to directly and indirectly staff the Corporation's day to day operations;
- changes in tax or environmental laws, royalty rates or other regulatory matters;
- changes in development plans of Altura or by third-party operators of Altura's properties;
- increased debt levels or debt service requirements;
- inaccurate estimation of Altura's oil and gas reserve and resource volumes;
- limited, unfavorable or a lack of access to capital or debt markets;
- increased costs;
- a lack of adequate insurance coverage;
- the impact of competitors; and
- certain other risks detailed from time to time in Altura's public documents.
The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Altura does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.
Non-GAAP Measures
This press release contains the term net debt, which does not have a standardized meaning under Canadian generally accepted accounting principles ("GAAP") and therefore may not be comparable with the calculation of similar measures by other companies. Management views net debt as a key industry benchmark and measure to assess the Corporation's financial position and liquidity. Net debt is calculated as current assets, excluding the Fair Value of Financial Instruments less current liabilities, excluding the Fair Value of Financial Instruments, less the current portion of lease liabilities and the current portion of the decommissioning liability.
For additional information on the use of these measures including reconciliations to the most directly comparable GAAP measures, please see Altura's most recent Management's Discussion and Analysis on Altura's profile at www.sedar.com.
Oil and Gas Advisories
Drilling Locations
This news release discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) potential drilling opportunities. Proved locations and probable locations, which are sometimes collectively referred to as "booked locations", are derived from the Corporation's most recent independent reserves evaluation as of
Neither the
SOURCE
© Canada Newswire, source