Crew Energy disposes certain non-core assets for $130M; partially redeems notes due 2024

Aug. 19, 2022 6:59 AM ETCrew Energy Inc. (CWEGF), CR:CABy: Preeti Singh, SA News Editor1 Comment

Crew Energy (OTCQB:CWEGF) announced on Thursday the completion of sale of certain non-core assets at Attachie and Portage in Northeast British Columbia for $130M.

The disposition includes ~47,025 net acres of Montney rights on land north of the Peace River with no associated production or facilities, total proved reserves of 4.7M boe and total proved plus probable reserves of 34.2M boe, representing 8.5% of total corporate proved plus probable reserves, with associated future development capital of $182.9M.

Net proceeds from the sale will be used to partially redeem $128M of 6.500% senior unsecured notes due 2024, of which an aggregate principal amount of $300M is currently outstanding.

The notes will be redeemed on Sep 19, 2022 at a price of C$1,010.40 for each $1,000.00 of principal amount redeemed, plus accrued and unpaid interest up to, but not including, the redemption date.

The transaction will help improve in overall cost of debt and strengthen the balance sheet.

The natural gas producer is currently undrawn on its $185M credit facility and will continue to assess options to refinance the remaining balance of the 2024 Notes over the coming quarters in advance of the March 2024 maturity date.

Recommended For You

Comments (1)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.