Page 15 - NorthAmOil Week 12

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NEWS IN BRIEF
NorthAmOil
committed to and that are focused on lowering the lifting cost structure of Talos’ assets by adding incremental barrels through existing fixed-cost offshore production facilities, resulting in an increased value of the asset base. Given the ability to utilize existing infrastructure, Talos believes these high margin, low breakeven investments are economic even in the current commodity price environment. Also included in the guidance is a limited, but unchanged, portion of Talos’ budget dedicated to the front-end engineering and design (FEED) work related to our Zama project offshore Mexico.
Production sales volumes for 2020 are expected to be 23.3-24.6mn barrels of oil equivalent (mmboe), which represents an average daily production of 63,700-67,100 barrels of oil equivalent per day (mboepd), or approximately a 3.1 mboepd (less than 5%) reduction from the original 2020 full-year guidance due to deferred projects.
Talos continues to maintain its robust hedge book. As of March 23, the company had approximately 11.9mn barrels of oil hedged for 2020, representing 70% of the mid-point of guided oil volumes, at a weighted average WTI price of $51.53 per barrel.
TALOS ENERGY, March 23, 2020
Yuma Energy provides an
update on its financial
status
Yuma Energy today provided an update
on the Company’s financial status and ability to restructure its liabilities and capital structure. As previously disclosed, in September 2019, YE Investment, an affiliate of Red Mountain Capital Partners, purchased all of the company’s outstanding senior secured bank indebtedness and
related liabilities under the company’s
senior credit facility. The credit facility was then modified to reduce the outstanding principal balance from approximately $32.8mn, plus accrued and unpaid interest and expenses, to approximately $1.4mn.
In September 2019, Yuma entered into a restructuring and exchange agreement with Red Mountain and affiliates, which was to result in the i) exchange of the modified
note for a new convertible note that would
be convertible into Yuma common stock,
and ii) conversion of the company’s Series D preferred stock into Yuma common stock. Finally, in December 2019, the parties entered into an amendment to the Restructuring Agreement and Credit Facility under which Red Mountain provided an additional two- year senior secured delayed-draw term loan for up to $2mn, maturing on September
30, 2022, from which the company has
drawn $850,000 to date. The transactions contemplated by the restructuring agreement were subject to stockholder approval pursuant to NYSE American rules and requirements and the restructuring agreement included
a termination right in the event such stockholder approval was not received by December 31, 2019. Please refer to our prior press releases and prior filings with the Securities and Exchange Commission for more comprehensive information regarding the above.
At present, Yuma is not in compliance with the various terms of the restructuring agreement and related credit arrangements. As a result, no further funds are currently available to Yuma under the facility. The parties have been and continue to negotiate to modify the various agreements and arrive at
a mutually agreeable path forward; however, there is no assurance that any transaction or alternate restructuring plan will materialise. YUMA ENERGY, March 20, 2020
MIDSTREAM
Superior Pipeline secures
large STACK play acreage
dedication
Superior Pipeline announced today that it has entered into a long-term, fee-based natural gas gathering and processing agreement with an active producer in the STACK play. The agreement replaces a prior contract with Superior, expanding the producer’s dedication area to approximately 345,000 gross acres. The Cashion system includes two cryogenic processing plants located in Kingfisher County, Oklahoma.
Within the acreage dedicated to Superior, the producer expects to continue development of four production zones in the STACK –
the Oswego, Mississippian, Woodford, and Hunton formations in central Oklahoma.
Mike Hicks, Superior’s Chief Operating Officer, said: “We are pleased to further our relationship with such an active and successful producer. This is another step in Superior’s plan to expand our existing assets, while also continuing to acquire synergistic midstream assets.”
Superior is a joint venture owned 50% by Unit Corporation and 50% by SP Investor Holdings, a holding company jointly owned by OPTrust and funds managed and/or advised by Partners Group, a global private markets investment manager.
SUPERIOR PIPELINE, March 18, 2020
MOVES
Occidental enters into
definitive agreement with
Carl C Icahn
Occidental Petroleum announced today that it has entered into an agreement with Carl C Icahn and affiliated entities to add three new Icahn designated directors to Occidental’s board.
Pursuant to the agreement, effective immediately Andrew Langham, Nicholas Graziano and Margarita Paláu-Hernández have been appointed to Occidental’s board of directors as new independent directors. Existing directors Spencer Abraham, Eugene Batchelder, Margaret M. Foran and Elisse B. Walter will retire from the board effective
at the company’s 2020 annual meeting of stockholders. With today’s appointments
Week 12 26•March•2020
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