CALGARY, Dec. 1, 2015 /CNW/ - Journey Energy Inc. (JOY – TSX) ("Journey" or the "Company") announces that it has completed its semi-annual review of its secured, revolving credit facility. Effective November 30, the borrowing base has been set at $140 million with no financial covenants. Previously, the borrowing base was $205 million with a covenant requiring approval of the syndicate for borrowings in excess of $150 million. The revised credit facility consists of a $15 million working capital facility and a $125 million revolving production loan facility. It is anticipated that the reduced borrowing base will result in lower standby fees which would have been charged on the unutilized amounts available under the facility. Currently there is $95 million drawn on the aggregate facility.
Based on Journey's current expectations of cash flows and capital spending for 2016, the revised credit facility will be more than sufficient to support the execution of our 2016 capital program and will also provide enough liquidity to take advantage of accretive, tuck-in acquisitions. Journey expects to release more comprehensive 2016 guidance on December 14, 2015.
About the Company
Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in western Canada. Journey's strategy is to become a growth plus sustainable yield company focused on drilling on its existing core lands, implementing water flood projects, executing on accretive acquisitions and growing its production base. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods.
SOURCE Journey Energy Inc.
For further information: Alex G. Verge, President and Chief Executive Officer, 403-303-3232, [email protected]; or Gerry Gilewicz, Chief Financial Officer, 403-303-3238, [email protected]; Journey Energy Inc., 700, 517 - 10th Avenue SW, Calgary, AB T2R 0A8, 403-294-1635, www.journeyenergy.ca