CALGARY, ALBERTA--(Marketwired - Sept. 15, 2016) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.
Questfire Energy Corp. (the "Corporation" or "Questfire") (TSX VENTURE:Q.A)(TSX VENTURE:Q.B) announces that the Corporation and its syndicate of lenders have agreed in principle to amend the terms of its bank facility, with such amended bank facility anticipated to have the following material provisions:
- a revised maturity date from May 30, 2017 to November 30, 2016;
- a restructuring of the Corporation's $44.5 million aggregate borrowing base so that it consists of: (1) a $5 million operating facility; (2) a $25,000,000 syndicated facility; and (3) a newly established $14.5 million supplemental facility;
- the supplemental facility is non-revolving (any repayment or prepayment shall be a permanent reduction thereof) and secured pari passu with the other facilities;
All associated terms and covenants are contained within the amending agreement which will be available on SEDAR once the amending agreement is signed.
The Corporation is actively pursuing a range of options including the sale of certain royalty interests and assets, all with the goal of eliminating the $14.5 million supplemental lending facility by November 30, 2016.
There can be no assurance that the amount available under the credit facilities will not be adjusted by the lenders prior to November 30, 2016. Further, there can be no assurance that the Corporation will be able to refinance its outstanding indebtedness on or prior to November 30, 2016.
About Questfire Energy Corp.
Questfire Energy Corp. is a junior oil and natural gas exploration and production company based in Calgary, Alberta.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this news release including the Corporation's ability to continue as a going concern, the Corporation's future funding sources, the borrowing base available under the credit facilities, management's assessment of future plans and operations, including plans to focus on reducing controllable costs, maximizing production and exercising capital spending discipline are forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.
Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Corporation 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 the Corporation can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the Corporation's ability to refinance its outstanding indebtedness prior to November 30, 2016, the borrowing base available under the credit facilities, interest payable under the credit facilities; the impact of increasing competition; the general stability of the economic and political environment in which the Corporation operates; the timely receipt of any required regulatory approvals; the ability of the Corporation 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 results; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Corporation to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Corporation operates; and the ability of the Corporation to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list of factors and assumptions is not exhaustive. Additional information on these and other factors that could affect Questfire's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed under Questfire's SEDAR profile at www.sedar.com. Furthermore, the forward looking statements contained in this news release are made as at the date of this news release and Questfire does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.