Journey Energy has completed a semi-annual review of its secured, revolving credit facility. Effective November 30, the borrowing base has been set at $140 million with no financial covenants.
Previously, the borrowing base was $205 million with a covenant requiring approval of the syndicate for borrowings in excess of $150 million. The revised credit facility consists of a $15 million working capital facility and a $125 million revolving production loan facility.
It is anticipated that the reduced borrowing base will result in lower standby fees which would have been charged on the unutilized amounts available under the facility. Currently there is $95 million drawn on the aggregate facility.
Based on Journey’s current expectations of cash flows and capital spending for 2016, the revised credit facility will be more than sufficient to support the execution of its 2016 capital program and will also provide enough liquidity to take advantage of accretive, tuck-in acquisitions.
Calgary, AB-based Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in western Canada.