Pieridae Energy Limited (“Pieridae” or the “Company”)
(PEA.TO) today announced it has reached an agreement
with its senior secured lender Third Eye Capital Corporation
(“TEC”) to extend payment of the $50 million term loan deferred fee
(which was due January 4, 2022) and to amend certain other terms
and covenants of the Credit Agreement first signed with TEC in
October of 2019, related to the purchase of Shell’s Foothills
assets.
Under the updated terms of the Credit Agreement,
the $50 million deferred fee is now incorporated as part of the
overall loan due on October 16, 2023. However, the deferred fee
will not accrue interest while outstanding. Additionally, certain
other modifications to the Credit Agreement were negotiated,
including the continued waiver of the requirement to hedge 60 per
cent of production on an 18-month rolling basis, through the end of
February 2022. This allows Pieridae to continue to take better
advantage of strong winter commodity prices.
“I want to thank TEC for their continued,
long-term support of Pieridae, and their willingness to work with
us and ultimately reach an agreement that benefits both parties,”
said Pieridae’s Chief Executive Officer Alfred Sorensen. “Their
ongoing support of Pieridae since 2019 is greatly appreciated, as
is their professionalism during detailed discussions over the past
number of weeks.
“While we have updated our loan agreement with
TEC, this does not conclude the Strategic Review of the Company,”
adds Sorensen. “We initiated this process last summer to identify,
examine and consider a range of alternatives with a view to
enhancing shareholder value. With the amended agreement announced
today, we will now continue to work with certain parties who have
expressed interest through the Strategic Review on potential
long-term solutions for the Company.”
About PieridaePieridae is a
majority Canadian-owned corporation based in Calgary that was
founded in 2011. The Company is focused on the exploration,
extraction and processing of natural gas as well as analyzing
options for a reconfigured LNG Project that fits with the current
environment and would supply Europe and other markets. Pieridae
provides the energy to fuel people’s daily lives while supporting
the environment and the transition to a lower-carbon economy. After
completion of all the transactions disclosed in this news release,
Pieridae has 157,641,871 common shares issued and outstanding which
trade on the TSX (PEA.TO).
For further information please
contact:
Alfred
Sorensen, Chief Executive Officer |
James
Millar, Director, External Relations |
Telephone: (403) 261-5900 |
Telephone: (403) 261-5900 |
Forward-Looking Statements
Certain statements contained herein may
constitute "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities laws
(collectively "forward-looking statements"). Words such as "may",
"will", "should", "could", "anticipate", "believe", "expect",
"intend", "plan", "potential", "continue", "shall", "estimate",
"expect", "propose", "might", "project", "predict", "forecast" and
similar expressions may be used to identify these forward-looking
statements.
Forward-looking statements involve significant
risk and uncertainties. A number of factors could cause actual
results to differ materially from the results discussed in the
forward-looking statements including, but not limited to, risks
associated with oil and gas exploration, development, exploitation,
production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision
of resources estimates, environmental risks, competition from other
producers, incorrect assessment of the value of acquisitions,
failure to realize the anticipated benefits or synergies from
acquisitions, delays resulting from or inability to obtain required
regulatory approvals and ability to access sufficient capital from
internal and external sources and the risk factors outlined under
"Risk Factors" and elsewhere herein. The recovery and resources
estimate of Pieridae's reserves provided herein are estimates only
and there is no guarantee that the estimated resources will be
recovered. As a consequence, actual results may differ materially
from those anticipated in the forward-looking statements.
Forward-looking statements are based on a number
of factors and assumptions which have been used to develop such
forward-looking statements, but which may prove to be incorrect.
Although Pieridae believes that the expectations reflected in such
forward-looking statements are reasonable, undue reliance should
not be placed on forward-looking statements because Pieridae can
give no assurance that such expectations will prove to be correct.
In addition to other factors and assumptions which may be
identified in this document, assumptions have been made regarding,
among other things: the impact of increasing competition; the
general stability of the economic and political environment in
which Pieridae operates; the timely receipt of any required
regulatory approvals; the ability of Pieridae to obtain qualified
staff, equipment and services in a timely and cost efficient
manner; the ability of the operator of the projects which Pieridae
has an interest in, to operate the field in a safe, efficient and
effective manner; the ability of Pieridae to obtain financing on
acceptable terms; the ability to replace and expand oil and natural
gas resources through acquisition, development and exploration; the
timing and costs of pipeline, storage and facility construction and
expansion and the ability of Pieridae to secure adequate product
transportation; future commodity prices; currency, exchange and
interest rates; the regulatory framework regarding royalties, taxes
and environmental matters in the jurisdictions in which Pieridae
operates; timing and amount of capital expenditures, future sources
of funding, production levels, weather conditions, success of
exploration and development activities, access to gathering,
processing and pipeline systems, advancing technologies, and the
ability of Pieridae to successfully market its oil and natural gas
products.
Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and
other factors that could affect Pieridae's operations and financial
results are included in reports on file with Canadian securities
regulatory authorities and may be accessed through the SEDAR
website (www.sedar.com), and at Pieridae's website
(www.pieridaeenergy.com). Although the forward-looking statements
contained herein are based upon what management believes to be
reasonable assumptions, management cannot assure that actual
results will be consistent with these forward-looking statements.
Investors should not place undue reliance on forward-looking
statements. These forward-looking statements are made as of the
date hereof and Pieridae assumes no obligation to update or review
them to reflect new events or circumstances except as required by
Applicable Securities Laws.
Forward-looking statements contained herein
concerning the oil and gas industry and Pieridae's general
expectations concerning this industry are based on estimates
prepared by management using data from publicly available industry
sources as well as from reserve reports, market research and
industry analysis and on assumptions based on data and knowledge of
this industry which Pieridae believes to be reasonable. However,
this data is inherently imprecise, although generally indicative of
relative market positions, market shares and performance
characteristics. While Pieridae is not aware of any misstatements
regarding any industry data presented herein, the industry involves
risks and uncertainties and is subject to change based on various
factors.
Barrels of oil equivalent (“boes”) may be
misleading, particularly if used in isolation. A boe conversion
ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
Neither TSX nor its Regulation Services
Provider (as that term is defined in policies of the TSX) accepts
responsibility for the adequacy or accuracy of this
release.
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