Essential Energy Services has entered into a renewed credit facility agreement with a syndicate of lenders, including National Bank of Canada, TD Bank, HSBC Bank Canada and Canadian Western Bank.

The credit facility extends the current revolving secured credit facility to May 31, 2019, with revised terms and conditions and relaxation of financial covenants.

The company agreed to reduce the facility from $100 million to $40 million and to reduce the accordion feature from $35 million to $20 million.

“This is the first credit facility amendment that Essential has requested in this prolonged downturn,” said Garnet Amundson, president and CEO. “We are pleased with the revisions and thank our lenders for their support and commitment to our business. The reduced facility size provides sufficient liquidity to meet our near-term plans and offers cost savings in the form of lower amendment and standby fees.”

Essential Energy Services provides oilfield services to oil and natural gas producers, primarily in western Canada.