CALGARY, Jan. 27, 2016 /CNW/ - Argent Energy Trust ("Argent" or the "Trust") (TSX: AET.UN) announces that to date Argent has been unable to reduce the amount outstanding under its credit facility to the amount of the borrowing base under the facility of US$45 million.
As previously announced on November 30, 2015, Argent's banking syndicate reduced the credit facility's borrowing base from US$80 million to US$45 million, and Argent had a 60-day cure period in which to reduce its borrowings to an amount equal to the new borrowing base. Among other matters, the failure of Argent to pay its borrowing base shortfall within the 60-day cure period results in an event of default under the facility. Argent continues to work with its banking syndicate to explore various alternatives.
Argent also announces that it has engaged The Oil & Gas Asset Clearinghouse, LLC ("OGAC") to assist management in the identification, evaluation and negotiation of potential transactions of a sale of the shares of Argent Energy (US) Holdings Inc. ("U.S. Opco"), the borrower under Agent's credit facility, or a sale of some or all of the assets of U.S. Opco.
The marketing process is expected to be commenced by OGAC on or before February 10, 2016, in conjunction with the North American Prospect Expo Summit in Houston, Texas. Interested parties should contact Harrison Williams, Chief Executive Officer of OGAC, at (281) 873-4600 or [email protected].
Argent can provide no assurance with respect to eventually curing the borrowing base shortfall, nor that the engagement of OGAC will result in an acceptable transaction in any form.
Note About Forward-Looking Statements
This press release includes forward-looking information within the meaning of applicable Canadian and United States securities legislation. All statements, other than statements of historical facts, that address activities, circumstances, events, outcomes and other matters that Argent forecasts, plans, projects, expects, believes, assumes or anticipates (and other similar expressions) will, should or may occur in the future, are considered forward-looking information.
In particular, forward-looking information contained in this press release includes, but is not limited to, the timing of the marketing process to be conducted by OGAC. The forward-looking information provided in this press release is based on management's current beliefs, expectations and assumptions, based on currently available information as to the outcome and timing of future events.
Forward-looking information is subject to a number of risks and uncertainties that could cause actual outcomes to differ materially from the expectations set forth in the forward-looking information. All forward-looking information speaks only as of the date of this press release, and Argent assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking information, except as required by law. You should not place undue reliance on forward-looking information.
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