Page 15 - NorthAmOil Week 48 2020

NorthAmOil NEWS IN BRIEF NorthAmOil

Sale of Cenovus’s Roszell, Headwater’s chairman and chief
UPSTREAM stage of our corporate evolution,” said Neil
Imperial provides update on Marten Hills oil assets to executive officer. “With Cenovus as a strategic
investor and Kam and Sarah adding to the
unconventional portfolio Headwater Exploration skills and experience of our already strong
board, we are well-positioned for success as a
Following annual review of its company closes premier publicly traded oil and gas producer
business and strategic plan, Imperial (TSE: focused on asset quality, corporate level
IMO, NYSE American: IMO) has re-assessed Cenovus Energy and Headwater Exploration returns and sustainability while maintaining a
the long-term development plans of its are pleased to announce the closing of the pristine balance sheet.”
unconventional portfolio in Alberta, Canada acquisition by Headwater of Cenovus’s assets “We look forward to working with
and no longer plans to develop a significant in the Marten Hills area of Alberta. Pursuant Headwater’s highly respected management
portion of this portfolio. The decision not to to the transaction, Headwater acquired a team as they begin to develop these top-
develop these assets will result in a non-cash, 100% working interest in approximately quality oil assets at Marten Hills,” said
after-tax charge of approximately CAD0.9- 2,800 barrels per day of medium gravity oil Sandhar. “This is a unique opportunity to
1.2bn in the company’s fourth-quarter 2020 production and 270 net sections of Clearwater get capital and expertise to work right away
results. rights. on a promising portfolio that was unlikely
These non-core assets are non-producing, The total consideration paid by Headwater to receive near-term funding from Cenovus,
undeveloped assets and the company does not to Cenovus for the transaction consists of: and we believe the closing of this transaction
expect any material future cash expenditures CAD35mn in cash; 50mn common shares will provide compelling long-term value for
related to this impairment. Not included in of Headwater; and 15mn purchase warrants Cenovus shareholders.”
this impairment are the high-value, liquids- exercisable at CAD2.00 per common share CENOVUS ENERGY AND HEADWATER
rich portion of the company’s unconventional with a three-year term. EXPLORATION, December 2, 2020
asset portfolio, which the company still plans Concurrent with closing the transaction,
to develop. Kam Sandhar, Cenovus’s Senior Vice- SandRidge Energy
This decision is consistent with Imperial’s President, Conventional, and Sarah Walters,
strategy of focusing its upstream resources Cenovus’s Senior Vice-President, Corporate announces closing of new
and efforts on its key oil sands assets as well Services, were appointed to the Board of
as on only the most attractive portions of Directors of Headwater. credit facility
its unconventional portfolio. As such, the “With the strong support received from
decision will not impact previously provided Cenovus, the Headwater team has been able SandRidge Energy today announced the
production estimates. to prepare for an active 2021 development closing of a $30mn credit facility.
IMPERIAL OIL, November 30, 2020 programme. The unique high-return assets The new credit facility is with affiliates of
acquired will provide the catalyst for the next Icahn Enterprises, and consists of a $10mn
revolving loan facility and a $20mn term loan
facility.
The new credit facility replaced the
company’s prior credit agreement which
was with a lending syndicate led by Royal
Bank of Canada. The prior credit facility was
terminated effective November 30, 2020 and
otherwise would have matured on April 1,
2021.
The new credit facility will charge the same
interest rate as the previous facility, however,
unlike the old facility it will have no scheduled
borrowing base redeterminations and no
longer charge a commitment fee.
The new credit facility matures on
November 30, 2023. The company has the
right to prepay loans under the New Credit
Facility at any time without a prepayment
penalty, other than customary “breakage”
costs with respect to LIBOR loans.
The company’s Form 8-K filed on
November 30, 2020 provides further details
on and includes the full new credit facility
agreement as an exhibit.
Carl Giesler, SandRidge’s president and
CEO, commented, “We appreciate Icahn
Enterprises and its affiliates working with us
to put this facility in place. It substantially

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