CALGARY, AB, Nov. 2, 2020 /CNW/ - Bonterra Energy Corp.
(www.bonterraenergy.com) (TSX: BNE) ("Bonterra" or the "Company")
announces it has received approval from its syndicate of lenders
for the Export Development Canada ("EDC") and Business Development
Bank of Canada ("BDC") programs
and to extend the revolving period applicable to the Company's
existing credit facility to November 13,
2020 from October 30, 2020.
The purpose of this short-term extension affords Bonterra and
associated parties the time required to finalize definitive
documentation pertaining to the BDC second lien non-revolving
four-year term facility for $45
million (the "BDC Term Facility") and the reserve-based
lending commitment from EDC of up to $38.4
million (the "EDC Commitment").
While banking documentation related to the BDC Term Facility and
EDC Commitment are finalized, Bonterra's lending syndicate has
consented to the Company commencing its expanded 2020 capital
expenditure program during the November extension period in an
amount up to $9 million as a draw on
its existing credit facility. This consent, representing the BDC
Term Facility capital expenditure budget for the period to
November 13, 2020 as provided to the
lending syndicate, affords Bonterra near-term liquidity to help
fund its winter 2020 drilling program and the ongoing development
of its high-quality, Cardium light oil asset base. The 2020 winter
drilling program supports long-term, sustainable net asset value
per share growth as the economy recovers.
Bonterra Recommends Shareholders Reject Obsidian's Hostile
Bid
Bonterra has already received notice that more than 33 percent
of the Company's shareholders will not tender their common shares
to the hostile bid, including every member of the Bonterra Board
and management team. The Company continues to recommend
shareholders reject the hostile bid and take no action. Bonterra is
proud of its established history of working within a challenging
market environment to pursue long-term sustainability and value
generation. With lending syndicate approval of the BDC Term
Facility, the EDC Commitment, and the funding available through
Alberta's Site Rehabilitation
Program, the Company is positioned to continue generating sustained
value for its stakeholders through initiatives focused on
increasing asset value and reducing debt and asset retirement
obligations.
Shareholder Questions
Shareholders with questions are encouraged to call Bonterra's
information agent, Laurel Hill Advisory Group at 1-877-452-7184
(+1-416-304-0211 outside North
America) or email assistance@laurelhill.com.
About Bonterra
Bonterra Energy Corp. is a conventional oil and gas corporation
with operations in Alberta,
Saskatchewan and British Columbia, focused on its strategy of
long-term, sustainable growth and value creation. The Company's
shares are listed on The Toronto Stock Exchange under the symbol
"BNE". For more information, please visit the Company's
website at www.bonterraenergy.com and follow Bonterra on Twitter
@Bonterra_Energy.
Forward Looking Information
Certain statements contained in this release include statements
which contain words such as "anticipate", "could", "should",
"expect", "seek", "may", "intend", "likely", "will", "believe" and
similar expressions, relating to matters that are not historical
facts, and such statements of our beliefs, intentions and
expectations about development, results and events which will or
may occur in the future, constitute "forward-looking information"
within the meaning of applicable Canadian securities legislation
and are based on certain assumptions and analysis made by us
derived from our experience and perceptions. Forward-looking
information in this release includes, but is not limited to:
business strategy and outlook; expectations regarding the potential
impact of COVID-19; expectations regarding the completion of
definitive documentation relating to government support programs
and the potential impact of such programs, and other such
matters.
All such forward-looking information is based on certain
assumptions and analyses made by us in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are
appropriate in the circumstances. The risks, uncertainties, and
assumptions are difficult to predict and may affect operations, and
may include, without limitation: foreign exchange fluctuations;
equipment and labour shortages and inflationary costs; general
economic conditions; industry conditions; changes in applicable
environmental, taxation and other laws and regulations as well as
how such laws and regulations are interpreted and enforced; the
ability of oil and natural gas companies to raise capital; the
effect of weather conditions on operations and facilities; the
existence of operating risks; volatility of oil and natural gas
prices; oil and gas product supply and demand; risks inherent in
the ability to generate sufficient cash flow from operations to
meet current and future obligations; increased competition; stock
market volatility; opportunities available to or pursued by us; and
other factors, many of which are beyond our control.
Actual results, performance or achievements could differ
materially from those expressed in, or implied by, this
forward-looking information and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
information will transpire or occur, or if any of them do, what
benefits will be derived there from. Except as required by law,
Bonterra disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise.
The forward-looking information contained herein is expressly
qualified by this cautionary statement.
Numerical Amounts
The reporting and the functional currency of the Company is
the Canadian dollar.
The TSX does not accept responsibility for the
accuracy of this release.
SOURCE Bonterra Energy Corp.