Lone Pine Resources announced the completion of an amendment to its syndicated credit facility, with JPMorgan Chase Bank, Toronto Branch serving as administrative agent.

Lone Pine’s amendment allowed the company’s total debt to EBITDA financial covenant, which previously had a permitted ratio of 4.5 to 1.0 for any quarterly period ending on or before June 30, 2013, has been increased to 5.75 to 1.0 for any quarterly period ending on or before June 30, 2013. For all periods after June 30, 2013, the maximum permitted Total Debt to EBITDA ratio remains at 4.0 to 1.0. There was no change to the company’s borrowing base of $185 million as part of this amendment.

This amendment resulted from an ongoing active dialogue with the company’s syndicate of lenders whereby Lone Pine has provided an update on the current status of its strategic asset review as well as certain other deleveraging initiatives the company is pursuing. Lone Pine is focused on addressing its liquidity issues and is currently engaged in discussions with the holder of a majority of the aggregate principal amount of its 10.375% senior notes due 2017 in connection with a possible restructuring or refinancing of the senior notes.

As of June 30, 2013, Lone Pine’s long term debt consisted of $178 million outstanding under the credit facility and US$195 million of senior notes. Lone Pine had a $13 million cash balance as at July 26, 2013.