Toro Oil & Gas closed a non-core asset divestiture and terminated its credit facility with National Bank as part of an overall initiative to reduce company expenses.
As part of Toro’s ongoing efforts to divest legacy non-core properties, Toro successfully closed a divestiture of its non-operated Pembina property to an arm’s length industry participant for total cash consideration of $2.25 million.
Toro also terminated its operating credit facility with National Bank. As disclosed in the company’s prospectus dated June 22, 2016, the company’s facility had previously been structured with prescribed reductions over the third and fourth quarters of 2016 leading into a semi-annual review at December 1, 2016. With existing cash reserves and proceeds from divestitures, the company does not foresee a need in the short-term to draw on amounts under the facility, and the company can avoid certain carrying charges by eliminating the facility.
Reduction of bank carrying charges is consistent with Toro’s concerted efforts over the last several quarters to reduce both operating and corporate costs.
Toro is a junior oil and gas energy focused on acquiring, developing and exploiting large oil in place pools within the Alberta-Saskatchewan Viking light oil fairway.