Athabasca Oil credit facility reduced to C$42 million

Athabasca Oil

01/06/2020 16:16

June 1 (Reuters) - Athabasca Oil Corp  ATH.TO  said on
Monday its lenders have reduced the maximum amount the company
can borrow against the value of its untapped oil and gas
reserves.
    Reserve-based lending (RBL) allows producers like Athabasca
to borrow money against the value attached to the undeveloped
reserves of oil and gas they possess. Lenders review these
facilities periodically as the value of those assets fluctuates.
    With the recent crash in oil prices, producers across North
America face a difficult redetermination season and many others
have also had their RBLs reduced or are preparing for it.
    Athabasca said the facility, reduced to C$42 million ($30.72
million), has been renewed until November 20, 2020.  urn:newsml:reuters.com:*:nGNX3vspfQ
    The company also said it continues to pursue opportunities
to access credit support, with Prime Minister Justin Trudeau
saying Canada will invest C$2.5 billion in measures to help the
hard-hit oil and gas industry during the COVID-19 pandemic. (https://reut.rs/2AqOZni)
    As of May 31, the company had cash and cash equivalents of
approximately C$330 million, inclusive of restricted cash.
      
($1 = 1.3671 Canadian dollars)

 (Reporting by Arunima Kumar in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Arunima.Kumar@thomsonreuters.com;))