All values are in Canadian dollars unless otherwise
indicated. Conversion of natural gas volumes to barrels of oil
equivalent (boe) are at 6:1.
CALGARY, Sept. 3, 2015 /CNW/ - Spyglass Resources Corp.
("Spyglass", or the "Company") (TSX: SGL, OTCQX: SGLRF)
announces that effective September 3,
2015, the Company's credit facility of $197.1 million consists of a $100 million syndicated borrowing base facility
with $77 million currently utilized,
and a syndicated reducing term facility with $97.1 million currently outstanding. The
syndicated borrowing base facility is reviewed semi-annually and is
subject to redetermination upon the disposition of assets,
commodity price changes and other factors. Both facilities have a
May 29, 2016 maturity date. The
Company's credit facility has been amended to stipulate that a
$35 million reduction to the reducing
term facility be completed on or prior to November 30, 2015 and further reduced to
$25 million by January 31, 2016. The reducing term facility is
expected to be decreased through recapitalization and asset
divestiture activities.
In an effort to reduce debt, Spyglass plans to come to market
with a broad disposition package incorporating core and non-core
assets. National Bank Financial has been engaged to assist with the
process. Management's attention remains on managing the resources
of the Company through a difficult commodity price environment,
reviewing recapitalization opportunities and ongoing property
dispositions. The Company's 2015 average production guidance is
unchanged at approximately 9,000 boe/d. Spyglass continues to meet
all of its obligations with respect to ongoing operations.
Reader Advisory and Note Regarding Forward Looking Information
Certain statements contained within this press release, and in
certain documents incorporated by reference into this document
constitute forward looking statements. These statements relate to
future events or future performance. All statements, other than
statements of historical fact, may be forward looking statements.
Forward looking statements are often, but not always, identified by
the use of words such as "seek", "anticipate", "budget", "plan",
"continue", "estimate", "expect", "forecast", "may", "will",
"project", "predict", "potential", "targeting", "intend", "could",
"might", "should", "believe" and similar expressions. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward looking
statements.
In particular, this press release contains the following forward
looking statements pertaining to, without limitation, the
following: Spyglass' (i) future production volumes and the timing
of when additional production volumes will come on stream;
Spyglass' (ii) realized price of commodities in relation to
reference prices; (iii) future commodity mix; (iv) future commodity
prices; (v) expectations regarding future royalty rates and the
realization of royalty incentives; (vi) expectation of future
operating costs on a per unit basis; (vii) the relationship of
Spyglass' interest expense and the Bank of Canada interest rates; (viii) future general
and administrative expenses; future development and exploration
activities and the timing thereof; (ix) deferred tax liability; *
estimated future contractual obligations; (xi) future liquidity and
financial capacity of the Company; (xii) ability to raise capital
and to add to reserves through exploration and development; (xiii)
ability to obtain equipment in a timely manner to carry out
exploration and development activities; (xiv) ability to obtain
financing on acceptable terms, and (xv) ability to fund working
capital and forecasted capital expenditures. In addition,
statements relating to "reserves" or "resources" are deemed to be
forward looking statements, as they involve assessments based on
certain estimates and assumptions that the resources and reserves
described can be profitably produced in the future.
We believe the expectations reflected in the forward looking
statements are reasonable but no assurance can be given that our
expectations will prove to be correct and consequently, such
forward looking statements included in, or incorporated by
reference into, this press release should not be unduly relied
upon. These statements speak only as of the date of this press
release or as of the date specified in the documents incorporated
by reference in this press release. The actual results could differ
materially from those anticipated as a result of the risk factors
set forth below and elsewhere in this press release which include:
(i) volatility in market prices for oil and natural gas; (ii)
counterparty credit risk; (iii) access to capital; (iv) changes or
fluctuations in production levels; (v) liabilities inherent in oil
and natural gas operations; (vi) uncertainties associated with
estimating oil and natural gas reserves; (vii) competition for,
among other things, capital, acquisitions of reserves, undeveloped
lands and skilled personnel; (viii) stock market volatility and
market valuation of Spyglass' stock; (ix)geological, technical,
drilling and processing capabilities; * limitations on insurance;
(xi) changes in environmental or legislation applicable to our
operations, (xii) our ability to comply with current and future
environmental and other laws; (xiii) changes in tax laws and
incentive programs relating to the oil and gas industry, and (xiv)
the other factors discussed under "Risk Factors" in the Company's
2014 Annual Information Form.
Readers are cautioned that the foregoing lists of factors are
not exhaustive. The forward looking statements contained in this
press release and the documents incorporated by reference herein
are expressly qualified by this cautionary statement. The forward
looking statements contained in this press release speak only as of
the date thereof and Spyglass does not assume any obligation to
publicly update or revise them to reflect new events or
circumstances, except as may be required pursuant to applicable
securities laws.
Barrel of oil equivalents or BOEs may be misleading,
particularly if used in isolation. A BOE conversion ratio of 6 mcf:
1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. As the value ratio between natural gas
and crude oil based on the current prices of natural gas and crude
oil is significantly different from the energy equivalency of 6:1,
utilizing a conversion on a 6:1 basis may be misleading as an
indication of value.
This press release shall not constitute an offer to sell, nor
the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale
of securities mentioned in this press release in any State in
the United States in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities law of any such State.
SOURCE Spyglass Resources