July 16, 2020 World Newswire

CALGARY, Alberta – Petrus Resources Ltd. (“Petrus” or perhaps the “Company”) (TSX: PRQ) is very happy to announce the concurrent expansion of its 2nd lien term loan (“Term Loan”) and Revolving Credit center (“RCF”) together with conclusion for the RCF loan providers’ 2020 annual review. The Company’s board of directors has additionally authorized its quarter that is third 2020 spending plan.

2ND LIEN TERM LOAN EXTENSION Petrus has entered into an amending contract with Macquarie Bank restricted to expand the $35 million Term Loan maturity date to 31, 2021 july. The attention price in the Term Loan balance will soon be updated to be the Dealer that is canadian Offered (“CDOR”) plus 975 foundation points. Every one of the interest will likely be produced by means of paymentinkind (“PIK”) and included with the outstanding stability for the Term Loan in place of payment per month of money interest. The definition of Loan extension also includes the elimination of the Total financial obligation to EBITDA ratio plus the Proved and PDP Asset Coverage Ratios from the economic covenants. The performing Capital ratio covenant happens to be updated up to a test this is certainly the least (or such lower quantity as decided to because of the lenders beneath the Term Loan which shall maybe maybe maybe not be not as much as 0.5:1.0).

CREDIT CENTER EXTENSION Concurrent aided by the Term Loan extension, the organization has also completed its yearly RCF review. The RCF ended up being updated to $88.5 million. By the end of this quarter no credit check personal loans online in washington that is second of, the business was drawn about $86.7 million contrary to the RCF, inclusive of the $0.6 million page of credit outstanding. The RCF may be paid down by $2.75 million at the conclusion of each and every fiscal quarter. The Company’s RCF readiness date happens to be updated to might 31, 2021 that has been set before the Term Loan maturity of July 31, 2021. Just like the Term Loan extension, the RCF includes the elimination of the debt that is total Adjusted EBITDA ratio along with the Proved and PDP resource Coverage Ratios from the economic covenants, additionally the performing Capital ratio covenant was updated to the very least test of 0.6:1.0 (or such lower quantity as consented to by the loan providers underneath the RCF which shall not be not as much as 0.5:1.0). The bankers Acceptance Stamping fees will range between 350 bps and 600 bps which will result in an increase in the RCF interest rate of between 150 bps and 250 bps as part of the RCF extension. The rise in rate of interest charged will soon be partially offset by the continued and reduction that is systematic the Company’s web financial obligation each quarter.

Petrus administration thinks this has sufficient liquidity to perform the Company’s business strategy on the approaching year. The business continues its efforts to divest specific noncore assets and assess other sourced elements of capital to enhance its balance sheet.

2020 THIRD QUARTER CAPITAL BUDGET utilizing the present volatility into the cost of Canadian light oil and natural gas, the organization thinks that it’s wise to keep a disciplined money budget that is versatile from a functional and perspective that is financial.

Petrus is dedicated to keeping its economic freedom additionally the business intends to ascertain quarter that is subsequent investing while the 12 months advances. The commodity composition and the location of drilling opportunities for the second half of 2020 we believe we have significant optionality in the number. Petrus is concentrated on creating its 2020 money intend to spend money methodically each quarter within funds movement, permitting extra funds each quarter to cut back financial obligation.

ABOUT PETRUS Petrus is just general public oil that is canadian fuel business centered on home exploitation, strategic purchases and riskmanaged research in Alberta.