Cathedral Energy Services is currently in discussions with The Bank of Nova Scotia and National Bank of Canada regarding proposed amendments to its credit facility. The update comes in light of the prolonged industry downturn that has negatively affected oil and gas service company activity levels. Cathedral expects to announce the terms and conditions of the amendments if any, on or prior to, the release of Cathedral’s second fiscal quarter on August 10, 2016.

The lenders have revised the Q2 cumulative minimum EBITDA requirement for the two quarters ending June 30, 2016 to $100,000 from $1.6 million. Cathedral’s total available credit facility has been reduced to $70 million from $80 million (including a $35 million accordion feature).

As of June 30, 2016, the total drawn facility was $27.3 million, which included a $0.8 operating loan, a $25 million term loan and $1.5 million in letters of credit. This compares to a total drawn facility of $34 million at December 31, 2015.

Calgary, Alberta-based Cathedral Energy Services is a partner to North American energy companies requiring high performance directional drilling services and dependable flowback and production testing solutions.