Painted Pony Announces Extension of Bank Line Review Date

CALGARY, Alberta, June 30, 2020 (GLOBE NEWSWIRE) — Painted Pony Energy Ltd. (“Painted Pony” or the “Corporation“) (TSX: PONY) today confirms the execution of an agreement with the Corporation’s syndicate of lenders to extend Painted Pony’s annual borrowing base redetermination date from June 30, 2020 to July 31, 2020. This extension affords both Painted Pony and the syndicate of lenders additional time to evaluate current market conditions as well as proposed Federal Government programs initiated through Export Development Canada (“EDC”) and Business Development Bank of Canada. The extension agreement includes an amendment which reduces Painted Pony’s existing syndicated credit facility by 7% or $25 million, from $350 million to $325 million. Painted Pony also has a $22 million unsecured letter of credit facility backstopped by EDC, bringing the Corporation’s present total credit capacity to $347 million. As at March 31, 2020, Painted Pony’s syndicated credit facility was drawn approximately $121 million.
DEFINITIONS AND ADVISORIES
Currency: All amounts referred to in this press release are stated in Canadian dollars unless otherwise specified.
Forward-Looking Information: This press release contains certain forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to future events or future performance and is based upon the Corporation’s current internal expectations, estimates, projections, assumptions and beliefs. All information other than historical fact is forward-looking information. Words such as “plan”, “expect”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words that indicate events or conditions may occur are intended to identify forward-looking information. In particular, this press release contains forward looking information relating to the redetermination of the Corporation’s annual borrowing base on July 31, 2020. Forward-looking information is based on certain expectations and assumptions including but not limited to the state of the economy and the exploration and production business; the economic and political environment in which the Corporation operates, the ability of oil and natural gas companies to raise capital; volatility of oil and natural gas prices; and oil and gas product supply and demand. Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations on which they are based will occur. Although the Corporation’s management believes that the expectations in the forward-looking statement is reasonable, there can be no assurance that such expectation will prove to be correct. As a consequence, actual results may differ materially from those anticipated. Forward-looking information is based on estimates and opinions of management at the time the information is presented. The Corporation is not under any duty to update the forward-looking information after the date of this press release to revise such information to actual results or to changes in the Corporation’s plans or expectations, except as required by applicable securities laws.ABOUT PAINTED PONYPainted Pony is a publicly traded natural gas company based in Western Canada. The Corporation is primarily focused on the development of natural gas and natural gas liquids from the Montney formation in northeast British Columbia. Painted Pony’s common shares trade on the TSX under the symbol “PONY”.Contact Information:
Patrick R. Ward
President and Chief Executive OfficerStuart W. Jaggard
Chief Financial OfficerJason W. Fleury
Director, Investor Relations
(403) 776-3261(403) 475-0440
1-866-975-0440 toll free
ir@paintedpony.ca
www.paintedpony.ca