CALGARY, Dec. 10, 2014 /CNW/ - Argent Energy Trust ("Argent" or the "Trust") (TSX: AET.UN) is pleased to announce that its banking syndicate has completed its previously announced redetermination of the Trust's credit facility. The Trust's credit facility borrowing base has been adjusted to US$140 million, from the previous limit of US$160 million, reflecting the asset sales undertaken in August and the revised independent reserves report as at September 30, 2014. The Trust is currently only US$103 million drawn on its facility and is in full compliance with all covenants. The next credit facility review is due in May 2015.
The financial flexibility provided by its credit facility is further supported by Argent's hedging program. For 2015, Argent has 2,000 net bbl/d of oil hedged at WTI oil prices of US$90/bbl equivalent or higher and 6,000 net mmbtu/d of natural gas hedged at an average price of US$4.12/mmbtu. This enhances the 2015 operating cashflow in the current commodity price environment.
The previously announced strategic review process is ongoing with a data room open, whereby the Board will consider all alternatives to increase unitholder value, including: a sale of a material portion of the assets of the Trust; a sale of the Trust, either in one transaction or in a combination of transactions; a merger or other business combination; or a joint venture or a farmout on a material portion of the assets. The Board has determined that exploring strategic alternatives is the best course of action in order to maximize unitholder value. Argent cautions that there can be no assurances that this strategic review process will result in an acceptable transaction of 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 budgets, forecasts, plans, projects, estimates, 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, realizable value of the Trust's assets, the payment of cash distributions by the Trust, the 2015 forecast operating cashflow, the ability to dispose of certain or all of its assets, completion of the strategic review process and ability for repayment of debt. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, future oil and natural gas prices, future currency exchange and interest rates, the regulatory framework governing taxes in the US and Canada and the Trust's status as a "mutual fund trust" and not a "SIFT trust", and estimates of anticipated production from the Trust's assets.
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. Argent cautions that its future oil, natural gas and natural gas liquids production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and natural gas prices, timing and amount of future capital expenditures, and other forward-looking information is subject to all of the risks and uncertainties normally incident to the exploration for and development and production and sale of oil and gas.
These risks include, but are not limited to, oil and natural gas price volatility, Argent's access to cash flows and other sources of liquidity to fund its capital expenditures, its level of indebtedness, its ability to replace production, the impact of the current financial climate on Argent's anticipated business and financial condition, a lack of availability of or increases in costs of goods and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating future oil and gas production or reserves, economic conditions and other risks as described in documents and reports that Argent files with the securities commissions or similar authorities in applicable Canadian jurisdictions on the System for Electronic Document Analysis and Retrieval (SEDAR). Any of these factors could cause Argent's actual results and plans to differ materially from those contained in the forward-looking information.
Forward-looking information is subject to a number of risks and uncertainties, including those mentioned above, that could cause actual results to differ materially from the expectations set forth in the forward-looking information. Forward-looking information is not a guarantee of future performance or an assurance that our current assumptions and projections are valid. 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. You are encouraged to closely consider the additional disclosures and risk factors contained in Argent's periodic filings on SEDAR that discuss in further detail the factors that could cause future results to be different than contemplated in this press release.
SOURCE: Argent Energy Trust
For further information: John Elzner, President & Chief Executive Officer, Argent Energy Trust, (832) 320-9206; Sean Bovingdon, Chief Financial Officer, Argent Energy Trust, (403) 770-4809