CIBC, Others Increase Pace Credit Facility
Pace Oil & Gas Ltd. has completed its annual credit review with a syndicate of banks resulting in a $25 million increase to its credit facilities, bringing the total available under the facilities to $300 million effective June 15, 2012. This represents a 9% increase from the previous borrowing base of $275 million and is a direct result of Pace’s solid reserve base and its continued strong results.
The terms of the credit facility remain unchanged from the previous arrangement.
The syndicate of banks is led by Canadian Imperial Bank of Commerce with National Bank of Canada as syndication agent and includes The Bank of Nova Scotia, Bank of Montreal, Alberta Treasury Branches and HSBC Bank Canada.
The increase in the company’s credit facility reflects the high quality of Pace’s reserve base with 63% of its reserves value being proved developed producing (83% oil weighted) and 77% of its reserves value being proven (82% oil weighted). The increase provides the company with greater financial flexibility to develop its assets in the future. Pace’s next semi-annual borrowing base review is scheduled for December 15, 2012.
Pace is a Calgary, Alberta-based intermediate sized oil-weighted company with a large portfolio of near term oil resource opportunities in the Western Canadian Sedimentary Basin.