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Altura Energy Inc. provides an update on its credit facility renewal


CALGARY, AB – Altura Energy Inc. (“Altura” or the “Corporation”) (TSXV: ATU) provides an update on its credit facility renewal.

Altura and its lender have agreed to further extend the credit facility renewal from July 31, 2020 to August 31, 2020 to provide sufficient time to apply for the proposed federal support programs being initiated through the Export Development Bank of Canada and the Business Development Bank of Canada. In the interim, Altura’s $9.0 million credit facility that was capped at $7.5 million on April 7, 2020 has been reduced to $6.0 million.

Altura’s net debt at June 30, 2020 is estimated to be $5.3 million, which decreased from $6.2 million at March 31, 2020.  Altura is forecasting a reduction of net debt to approximately $3.5 million as at December 31, 2020 from positive adjusted funds flow1 and an asset disposition that is planned to close on September 30, 2020.  Please refer to the Corporation’s June 30, 2020 news release for further information on Altura’s asset dispositions that are planned for September 30, 2020January 31, 2021, and June 30, 2021.

Altura will continue to focus on protecting its balance sheet with disciplined capital expenditures, its low operating cost structure, and an active hedging program.  In addition, the Corporation remains in very strong standing with an AER Liability Management Rating (“LMR”) of 7.89.

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Key assumptions for positive adjusted funds flow in the second half of 2020:

WTI US$41.42/bbl, WCS diff US$11.23/bbl, FX 0.75 $US/$, AECO CAD$2.05/GJ, average production 1,000 – 1,100 boe per day, and operating and transportation costs of $12.50 per boe

ABOUT ALTURA ENERGY INC.

Altura is a junior oil and gas exploration, development and production company with operations in central Alberta.  Altura predominantly produces from the Rex member in the Upper Mannville group and is focused on delivering per share growth and attractive shareholder returns through a combination of organic growth and strategic acquisitions.



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