Stock Exchange: TSX
CALGARY, May 5, 2016 /CNW/ - Tesla Exploration Ltd. ("Tesla" or the "Company") today provides the following update regarding its credit facilities:
Under the credit facilities which expire on June 30, 2016, the Company is required to meet a minimum quarterly Lender Adjusted EBITDA covenant as defined in the facility and provide a monthly borrowing base calculation to support the Operating Loan Facility. For the first quarter ended March 31, 2016, the Company anticipates being in violation of the minimum Lender Adjusted EBITDA covenant and has requested a waiver from its lender. In addition, the Company has drawn on its Operating Loan Facility in excess of its borrowing base limit by approximately $1.1 million. Expected cash receipts may temporarily reduce or eliminate the shortfall, however the Company anticipates that the occurrence of borrowing base shortfalls may continue for the foreseeable future.
The Company has also received verbal notification from the UK lender that its GBP1.8 million overdraft facility will not be extended past June 30, 2016.
The Company is currently in negotiations with its lender to resolve these issues, however there is no certainty regarding the outcome of these negotiations and possible future courses of action.
Certain information set forth in this press release, including management's assessment of the Company's future plans and operations, contains forward-looking statements, which are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "intends", "continues", "estimates", "objective", "ongoing", "may", "will", "should", "might", "plans" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements are based on current expectations, estimates and projections that involve a number of known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These include, but are not limited to, the risks outlined in the "Business Risks" section of the Company's MD&A for the three and twelve months ended December 31, 2015.
The information contained in this press release should not be considered all-inclusive as it excludes changes that may occur in general economic, political and environmental conditions. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Investors are cautioned against attributing undue certainty to forward-looking statements. The forward-looking information and statements contained in this press release speak only as of the date hereof and, subject to its obligations under applicable law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements if conditions or opinions should change.
Tesla provides seismic land data acquisition in a multitude of environments in Canada through Tesla Exploration Partnership ("Tesla Canada"), in the U.S.A. through Tesla Exploration Inc. ("Tesla USA"), in South America through Tesla Exploration Trinidad Ltd. ("Tesla Trinidad") Tesla Exploration Colombia S.A.S. ("Tesla Colombia") and Tesla Do Brasil Geotecnia Ltda. ("Tesla Brazil"), which was incorporated in 2014 to explore offshore opportunities off the coast of Brazil. Tesla serves other markets in Europe and Africa mainly through Tesla Exploration International Limited ("Tesla International") and Tesla Exploration Tunisia SARL ("Tesla Tunisia"). Tesla also has an international data processing office in the UK. Tesla Offshore LLC ("Tesla Offshore") operates geophysical hazard surveys and provides positioning services for construction and diving operations in the Gulf of Mexico and internationally using its own vessel and other chartered vessels. Tesla trades on the TSX under the symbol "TXL".
SOURCE Tesla Exploration Ltd.
For further information: Requests for shareholder information should be directed to: Mr. Richard Habiak, President and CEO, (403) 216-0990; Mr. Graham Reid, Vice President and CFO, (403) 692-4602