CALGARY,
May 1, 2016 /CNW/ - (TSX: TBE)
– Twin Butte Energy Ltd. ("Twin Butte" or the
"Company") announces that it is in discussions with its bank
syndicate to extend the maturity date of its $85 million non-revolving credit facility from
April 30, 2016 to enable the Company
to continue with its strategic alternatives process.
As announced on December
9, 2015, Twin Butte has engaged Peters & Co. Limited and
National Bank Financial Inc. as its financial advisors to advise
the Company in connection with a comprehensive review and analysis
of its strategic alternatives process. Strategic alternatives may
include, but are not limited to, a debt restructuring, a sale of
all or a material portion of the assets of Twin Butte, either in
one transaction or in a series of transactions, the outright sale
of the Company, or merger or other transaction involving Twin Butte
and a third party, and/or alternative financing initiatives.
While the Company remains optimistic with respect
to reaching an agreement to extend the maturity date of its
non-revolving credit facility, the Company cautions that there are
no assurances or guarantees that the discussions with its lenders
will result in a formal agreement to extend such maturity date.
Furthermore, the Company cautions that there are no assurances or
guarantees that Twin Butte's process will result in a transaction,
or if a transaction is undertaken, the terms or timing of such a
transaction.
Within the context of the ongoing strategic
alternatives process, the current low oil price environment and the
aforementioned debt repayment milestone, there is uncertainty
surrounding the Company's ability to continue as a going concern.
While the Company is in discussions with its lenders, failure to
repay the non-revolving facility when due (unless otherwise
extended) will constitute an event of default and entitle the
syndicate to exercise its remedies under the credit facility,
including acceleration of the credit facility and realization over
the assets of the Company.
About Twin Butte:
Twin Butte Energy Ltd. is a value oriented
intermediate producer with a deep, low risk, drilling inventory
focused on medium and heavy oil reservoirs. The common shares of
Twin Butte are listed on the TSX under the symbol "TBE".
Reader Advisory
Forward-Looking Statements
Certain information set forth in this news
release contains forward-looking statements including Twin Butte's
assessment regarding its ability to extend the maturity date
of its non-revolving credit facility, Twin Butte's assessment of
its strategic alternatives review process and expectations
regarding Twin Butte's ability to continue as a going concern. By
their nature, forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond Twin Butte's
control, including that the maturity date of the credit facility
may occur, without a formal agreement to extend the same, that in
the event the maturity date is extended, that Twin Butte will
likely have a limited period of time to address possible
restructuring changes to its business failing which the bank credit
facilities may be subject to syndicate action, the strategic
alternatives review process may not result in a transaction which
is satisfactory to the banking syndicate which may lead the
syndicate to take action on the credit facilities, the impact of
general economic conditions, industry conditions, volatility of
commodity prices, risks associated with oil and gas exploration,
development, exploitation, production, marketing and
transportation, loss of markets, delays resulting from or the
inability to obtain required regulatory approvals, inability to
retain and delays in retaining drilling rigs and other services,
currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other industry participants,
the lack of availability of qualified personnel or management,
stock market volatility, incorrect assessment of the value of
acquisitions, failure to realize the anticipated benefits of
acquisitions, and ability to access sufficient capital from
internal and external sources. The foregoing list is not
exhaustive. Additional information on these and other risks that
could affect Twin Butte's operations and financial results are
included in reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website
(www.sedar.com). Readers are cautioned that the
assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
forward-looking statements. The actual results, performance or
achievement of Twin Butte could differ materially from those
expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do so, what benefits that Twin Butte will
derive therefrom. Twin Butte disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable securities laws.
SOURCE Twin Butte Energy Ltd.