Prairie Provident announces renewal of its credit facilities


CALGARY, Alberta, December 29, 2021 (GLOBE NEWSWIRE) – Prairie Provident Resources Inc. (“Prairie Provident” or the “Company”) is pleased to announce the renewal of its senior secured revolving note facility (the “ renewable facility ”). The renewal extends the maturity date and renewal period by one full year from December 31, 2022 to December 31, 2023, and includes additional changes to the terms of the credit facility as well as the senior subordinated notes outstanding. of the Company (“subordinated notes”).

The Amendments Provide Prairie Provident with the Financial Stability to Support the Execution of its 2022 and 2023 Capital Programs, Underpinning the Company’s Goal of Creating Shareholder Value.

The availability of credit under the revolving facility is based on the then applicable borrowing basis, which, in accordance with terms agreed at the end of 2020, will be set at US $ 53.8 million as of December 31, 2021 (equivalent to 71 , 1 million Canadian dollars). The current changes provide for increased certainty of borrowing base during 2022, as there will be no scheduled re-determination of borrowing base until December 31, 2022, at which time the borrowing base will be. reduced to US $ 50.0 million and will subsequently be subject to re-determination based on end-of-year and mid-year reserve assessments during 2023. Although lenders retain their right to demand re-determination at any time, the next scheduled re-determination is spring 2023 based on an assessment of year-end 2022 reserves.

The Company currently has US $ 17.0 million in US dollar denominated advances and US $ 41.1 million in Canadian dollar denominated advances drawn on the revolving facility, for total borrowings under the revolving facility. ci of US $ 47.4 million, or C $ 62.9 million (by converting advances denominated in US dollars at a current exchange rate of US $ 1.00 to C $ 1.28).

The margin on amounts borrowed under the revolving facility will continue to be 650 basis points per annum above the benchmark prime rates, LIBOR or CDOR, as applicable, for 2022, and will increase to 950 basis points per annum. basis per year for 2023.

In connection with the renewal of the revolving facility, the maturity date of the aggregate initial principal amount of US $ 28.5 million of the subordinated bonds issued in October 2017 and November 2018 (as well as the deferred interest paid in kind) has been extended from June 30, 2023. to June 30, 2024. The maturity date of the initial principal of US $ 11.4 million of the subordinated notes issued in December 2020 (as well as the deferred interest paid in kind) remains December 21, 2026 .

The current balance of amounts due under the outstanding subordinated notes, including interest deferred until December 31, 2021, is US $ 48.4 million (equivalent to C $ 61.9 million based on a current exchange rate of US $ 1.00 to CA $ 1.28), of which US $ 35.5 million now expires on June 30, 2024.

The amendments to the subordinated notes also allow the Company to elect to pay in kind all interest owed on them as long as any indebtedness remains unpaid under the revolving facility. The terms of the revolving facility require Prairie Provident to make this election.


Prairie Provident is a Calgary-based company dedicated to the exploration and development of oil and gas properties in Alberta. The Company’s strategy is to optimize cash flow from our existing assets, to develop a core water injection business at Evi (Slave Point Formation) and Michichi (Banff Formation) by providing flows of stable cash flow with low decline, and organically develop a new complementary area to facilitate reserves and production growth. The Princess region in southern Alberta continues to provide short cycle yields through the successful development of the Glauconite and Ellerslie formations.

For more information, please contact:

Prairie Provident Resources Inc.
Tony Berthelet
President and CEO
Phone. : (403) 292-8125
Email: [email protected]

Mimi Lai
Executive Vice President of Finance and Chief Financial Officer
Phone. : (403) 292-8171
Email: [email protected]


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