CALGARY, May 29, 2018 /CNW/ - Cequence Energy Ltd.
("Cequence" or the "Company'') (TSX: CQE) is pleased to announce
the Company has extended its Senior Credit borrowing capacity with
its Syndicate of Lenders. The borrowing base has been reduced
to $9 million (previously
$12 million) with an extension term
until July 31, 2018. The
Company remains undrawn on its Senior Credit facility other than
approximately $1.5 million in letters
of credit. As at March 31,
2018, the Company had $74.5
million in net debt comprised of $60
million in senior notes carrying a five year term (maturing
in October 2018) and a working
capital deficiency of $14.5
million.
The Company continues to actively pursue various strategies to
improve its liquidity position including: ongoing discussions with
CPPIB Credit Investments Inc. as the sole noteholder, debt or
equity financing, potential business combinations or other
restructuring. Management is hopeful that it will be able to
implement one or more of these strategies prior to the CPPIB senior
notes maturing, although that is not guaranteed. Further details
are set forth in the financial statements available on SEDAR.
About Cequence
Cequence is a publicly traded Canadian energy company involved
in the acquisition, exploitation, exploration, development and
production of natural gas and crude oil in western Canada. Further information about Cequence may
be found in its continuous disclosure documents filed with Canadian
securities regulators at www.sedar.com.
Forward-looking Statements or Information
Certain statements included in this press release constitute
forward-looking statements or forward-looking information under
applicable securities legislation. Such forward-looking statements
or information are provided for the purpose of providing
information about management's current expectations and plans
relating to the future. Readers are cautioned that reliance on such
information may not be appropriate for other purposes, such as
making investment decisions. Forward-looking statements or
information typically contain statements with words such as
"anticipate", "believe", "expect", "plan", "intend", "estimate",
"propose", "project" or similar words suggesting future outcomes or
statements regarding an outlook. Forward-looking statements or
information in this press release include, but are not limited to,
statements relating to management's plans to seek to implement a
debt or equity financing, potential business combinations or other
restructuring prior to the maturity date of the CPPIB senior notes.
Forward-looking statements or information are based on a number of
factors and assumptions which have been used to develop such
statements and information but which may prove to be incorrect.
Although the Company believes that the expectations reflected in
such forward-looking statements or information are reasonable,
undue reliance should not be placed on forward-looking statements
because the Company can give no assurance that such expectations
will prove to be correct. Forward-looking statements or information
are based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by the
Company and described in the forward-looking statements or
information. These risks and uncertainties may cause actual results
to differ materially from the forward-looking statements or
information. The material risk factors affecting the Company and
its business are contained in the Company's Annual Information Form
which is available on SEDAR at www.sedar.com.
The forward-looking statements or information contained in
this press release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise unless required by
applicable securities laws. The forward-looking statements or
information contained in this press release are expressly qualified
by this cautionary statement.
The TSX has neither approved nor disapproved the contents of
this news release.
SOURCE Cequence Energy Ltd.