CALGARY, Jan. 29, 2016 /CNW/ - Argent Energy Trust ("Argent" or the "Trust") (TSX: AET.UN) today announces that, as a result of the occurrence of Argent's previously announced event of default under its credit facility, the counterparties to Argent's swaps have terminated those arrangements and set off the amounts owing to Argent's US-based operating subsidiary thereunder (approximately US $12.4 million in the aggregate) against the amounts outstanding under Argent's credit facility (under which Argent's US-based operating subsidiary is the borrower). Accordingly, the amount outstanding under Argent's credit facility has been reduced to approximately US $50.6 million, with a $1.3 million letter of credit also outstanding.
Argent is continuing to explore all alternatives to provide the necessary liquidity and capital to the Trust. Argent can provide no assurance that its efforts will be successful or that capital will be available on satisfactory terms.
Argent also announces the resignation, effective at 5:00 p.m. (Mountain Standard Time) today, of Mr. Richard Louden, Executive Chairman of the Board of Directors of Argent Energy Ltd., the administrator of the Trust. Argent would like to thank Mr. Louden for his contributions since the formation of the Trust.
About Argent Energy Trust
Argent is a mutual fund trust under the Income Tax Act (Canada). Argent's objective is to create stable, consistent returns for investors through the acquisition and development of oil and natural gas reserves and production with low risk exploration potential, located primarily in the United States. Material information pertaining to Argent Energy Trust may be found on www.sedar.com or www.argentenergytrust.com.
SOURCE Argent Energy Trust
For further information: Sean Bovingdon, President & Chief Financial Officer, Argent Energy Trust, (403) 770-4809; Steve Hicks, Chief Operating Officer, Argent Energy Trust, (281) 847-1888