BlackPearl Defers Term Facility Due to ‘Volatile Debt Markets’
Oil and gas production company BlackPearl Resources announced that, due to recent volatility in the debt capital markets, it has decided not to proceed with its proposed $350 million second-lien senior secured term loan facility at this time.
The company said it will re-evaluate its financing options when capital markets stabilize. Construction of the Onion Lake thermal enhanced oil recovery project will be deferred until alternative financing is established; however, engineering and certain long lead planning will continue.
John Festival, president of BlackPearl, commented, “Our thermal projects at both Blackrod and Onion Lake are significant mid to long term value generators for the company. It is prudent to initiate these projects on a solid financial footing and, until the debt markets stabilize, we have decided to defer our proposed debt financing.”