InPlay Oil Corp. Announces Redetermination of Credit Facilities
July 15 2020 - 8:00AM
InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the
“Company”) announces that its syndicate of lenders has completed
the redetermination of its Credit Facilities. InPlay’s Credit
Facilities have been confirmed at $65 million. The Credit
Facilities mature on May 31, 2021 and have upward adjustments to
the interest rate pricing grid.
InPlay was prompt and proactive in reacting to
the quick, unprecedented drop in crude oil pricing in March.
Initiatives included a 20 percent reduction in field and office
salaries, multiple cost cutting measures and the immediate
suspension of the 2020 capital program. InPlay continues to limit
capital spending in 2020 based on current crude oil prices and the
Company anticipates that the renewed Credit Facilities will provide
sufficient liquidity for InPlay to maintain its current level of
operations for the balance of 2020. Pricing has improved
since the lows of late March into mid-May and the Company will
monitor pricing and make future 2020 capital spending decisions in
consideration of future pricing and available financial
liquidity. As of June 30, 2020, the Company was drawn
approximately $59 million on its Credit Facilities.
In partnership with our syndicate of lenders,
InPlay has also initiated the application process to access
the potential liquidity backstop programs being proposed
for the oil and gas sector through the Business Development Bank of
Canada (“BDC”) and the Export Development Bank of Canada
(“EDC”).
InPlay is based in Calgary, Alberta and the
common shares of InPlay are traded on the Toronto Stock Exchange
under the trading symbol "IPO". For further information about the
Company, please visit our website at www.inplayoil.com.
For further information please contact:
Doug Bartole President and Chief Executive Officer InPlay Oil Corp.
Telephone: (587) 955-0632 |
|
Darren Dittmer Chief Financial Officer InPlay Oil Corp. Telephone:
(587) 955-0634 |
Reader Advisories
Forward-Looking Information and
Statements This news release contains certain
forward–looking information and statements within the meaning of
applicable securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" “forecast” and similar
expressions are intended to identify forward-looking information or
statements. In particular, but without limiting the foregoing, this
news release contains forward-looking information and statements
pertaining to the following: the Company’s current expectation that
the renewed Credit Facilities will provide sufficient liquidity for
InPlay to maintain its current level of operations for the balance
of 2020; potential access to the BDC and/or EDC liquidity backstop
programs, future liquidity and financial capacity; future results
from operations and operating metrics; future costs, expenses and
royalty rates; future interest costs; and the exchange rate between
the $US and $Cdn. Forward-looking statements or information are
based on a number of material factors, expectations or assumptions
of InPlay which have been used to develop such statements and
information but which may prove to be incorrect. Although InPlay
believes that the expectations reflected in such forward-looking
statements or information are reasonable, undue reliance should not
be placed on forward-looking statements because InPlay can give no
assurance that such expectations will prove to be correct. In
addition to other factors and assumptions which may be identified
herein, assumptions have been made regarding, among other things:
the impact of increasing competition; the general stability of the
economic and political environment in which InPlay operates; the
timely receipt of any required regulatory approvals; the ability of
InPlay to obtain qualified staff, equipment and services in a
timely and cost efficient manner; drilling results; the ability of
the operator of the projects in which InPlay has an interest in to
operate the field in a safe, efficient and effective manner; the
ability of InPlay to obtain financing on acceptable terms; field
production rates and decline rates; the ability to replace and
expand oil and natural gas reserves through acquisition,
development and exploration; the timing and cost of pipeline,
storage and facility construction and the ability of InPlay to
secure adequate product transportation; future commodity prices;
currency, exchange and interest rates; regulatory framework
regarding royalties, taxes and environmental matters in the
jurisdictions in which InPlay operates; and the ability of InPlay
to successfully market its oil and natural gas products.
The forward-looking information and statements
included herein are not guarantees of future performance and should
not be unduly relied upon. Such information and statements,
including the assumptions made in respect thereof, involve known
and unknown risks, uncertainties and other factors that may cause
actual results or events to defer materially from those anticipated
in such forward-looking information or statements including,
without limitation: the duration and impact of COVID-19; changes in
commodity prices; the potential for variation in the quality of the
reservoirs in which we operate; changes in the demand for or supply
of our products; unanticipated operating results or production
declines; changes in tax or environmental laws, royalty rates or
other regulatory matters; changes in development plans of InPlay or
by third party operators of our properties; increased debt levels
or debt service requirements; future liquidity, inaccurate
estimation of our oil and gas reserve and resource volumes;
limited, unfavorable or a lack of access to capital markets;
increased costs; a lack of adequate insurance coverage; the impact
of competitors; and certain other risks detailed from time-to-time
in InPlay's disclosure documents.
The forward-looking information and statements
contained in this news release speak only as of the date hereof and
InPlay does not assume any obligation to publicly update or revise
any of the included forward-looking statements or information,
whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws.
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