Pacific Exploration & Production announced that the requisite number of its bank lenders have approved entering into the previously announced forbearance agreements with the company and have entered into such agreements.

The company confirms that it has also entered into forbearance agreements in respect of the following agreements:

  • $1 billion revolving credit and guaranty agreement with a syndicate of lenders and Bank of America, as administrative agent;
  • $250 million credit and guaranty agreement with HSBC Bank as agent;
  • $109 million credit and guaranty agreement with Bank of America as lender, and
  • $75 million master credit agreement with Banco Latino Americano de Comercio Exterior as lender.

Under the terms of the lender forbearance agreements, the requisite lenders pursuant to the credit agreements have also agreed, subject to certain terms and conditions, to forbear from declaring the principal amounts of such credit agreements due and payable as a result of certain specified defaults during the extension period.

Pacific Exploration & Production is a Canadian public company and a leading explorer and producer of natural gas and crude oil, with operations focused in Latin America.