BlackPearl Resources Inc. is pleased to announce the renewal of its credit facilities and provide initial 2016 guidance for the Company.
Our credit facilities were renewed, with the borrowing base maintained at $150 million;
The 2016 capital budget was set at $15 million, reflecting the current low oil price environment. Excess cash flow will be used to repay debt. Current debt of $92 million is expected to be reduced to $70-$75 million during 2016;
Despite the challenging price environment and limited capital investment, average daily oil production is expected to increase over 25% in 2016 compared to 2015.
Renewal of Credit Facilities
BlackPearl's lenders completed their semi-annual review of our credit facilities and have agreed to maintain the borrowing amount available to the Company at $150 million. The facilities will consist of a $140 million syndicated revolving line of credit and a non-syndicated operating line of credit of $10 million.