Page 13 - NorthAmOil Week 14

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
Athabasca Oil Corporation takes further actions in response to the current environment
Athabasca Oil Corporation is taking
further immediate actions in response to the significant decline in global oil prices to bolster balance sheet strength and corporate resiliency.
Due to the significant decline in oil prices combined with the economic uncertainty associated to the ongoing COVID crisis, Athabasca has decided to suspend the Hangingstone SAGD operation. This suspension was initiated on April 2, 2020
and will involve shutting in the well pairs, halting steam injection to the reservoir, and taking measures to preserve the processing facility and pipelines in a safe manner so that it could be re?started at a future date when the economy has recovered.
The Hangingstone asset has an operating break?even of approximately US$37.50 Western Canadian Select and this action is expected to significantly improve corporate resiliency in the current environment. As
part of this action, Athabasca is reducing its corporate staff count by 15%. Hangingstone was Athabasca’s first operated oil sands project that began construction in 2013 and was commissioned in 2015. The Company would like to thank all staff that have worked hard over the years to bring this asset on stream.
It is unfortunate that made-in-Alberta assets like Hangingstone cannot continue operations
under current prices.
Annual corporate guidance is 30,000-
31,500 boepd and reflects a ~2,500 boepd reduction related to the shut?in. The company is prepared to self?curtail additional production volumes as required by the price environment. Production optimisation initiatives will be aimed at maximising corporate funds flow while maintaining the integrity of booked reserves.
Athabasca has now cancelled a total
of CAD40mn of capital expenditures, representing a 30% reduction from the original 2020 budget. The revised CAD85mn budget includes the recent completion of its winter light oil programme (10 Montney wells and 16 Duvernay wells). The company has
no additional light oil activity planned for the balance of the year. The company already had a minimal capital programme in place and has no additional capital requirements to sustain its remaining liquids weighted production base.
ATHABASCA OIL CORPORATION, April 2, 2020
Yuma Energy receives notice of acceleration under credit agreement and termination of restructuring agreement
Yuma Energy announced today that it has been notified by its lender, YE Investment,
an affiliate of Red Mountain Capital, that
all outstanding payments under its existing credit agreement are currently due and that its restructuring agreement with Red Mountain
has been terminated.
In a press release issued on March 20, 2020,
Yuma disclosed that it was not in compliance with the various terms of the restructuring agreement and related credit arrangements, and no further funds were available to Yuma under the facility. Please refer to our prior press releases and prior filings with the Securities and Exchange Commission for more comprehensive information regarding the agreements and transactions.
On March 30, 2020 the company disclosed that effective March 26, 2020, J. Christopher Teets, who was appointed as a member of the board of directors on September 30, 2019, resigned as a member of the board of directors of Yuma Energy.
On April 3, 2020, Yuma Energy and its related affiliates received written notice
from Red Mountain that numerous defaults and events of default have occurred and are continuing under the Credit Agreement
and the other loan documents, including failure to pay interest within the time provided and failure to comply with other covenants. Consequentially, Red Mountain has terminated all loan commitments and has accelerated the payments including accrued interest, fees and other obligations, are
now due immediately. Also, Yuma received simultaneous written notice from Red Mountain that the restructuring agreement and related voting agreement have been automatically terminated.
YUMA ENERGY, April 07, 2020
MIDSTREAM
Pembina Pipeline
Corporation announces
new credit facility, declares
dividends, announces
first quarter 2020 results
conference call and
webcast and provides
update on virtual annual
general meeting
Pembina Pipeline Corporation announced today that it has entered into a new $800mn unsecured revolving credit facility. The company further announced that its board of directors has declared a common share cash
Week 14 09•April•2020
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