Advantage Announces Increase in Credit Facility to $400 Million
CALGARY, May 29, 2014
(TSX: AAV, NYSE: AAV)
CALGARY, May 29, 2014 /PRNewswire/ - Advantage Oil & Gas Ltd. ("Advantage" or
the "Corporation") announced today that its lenders have increased the
Corporation's borrowing base from $300 million to $400 million following the
completion of their annual review.
Significant growth in Glacier's proven developed producing reserves combined
with the recent production increase to approximately 135 mmcfe/d were key
factors in the borrowing base expansion.
The borrowing base increase strengthens Advantage's financial flexibility in
support of the Corporation's three year development plan targeted to deliver
100% production per share growth and 190% cash flow per share growth. As at
March 31, 2014, Advantage's bank indebtedness was approximately $84.7 million
which results in an available credit facility of $315 million.
Our current Phase VII capital development program at Glacier is targeted to
increase production to 183 mmcfe/d in June 2015. The Phase VII drilling
program is underway with seven of 33 planned wells rig released to date.
The information in this press release contains certain forward-looking
statements, including within the meaning of the United States Private
Securities Litigation Reform Act of 1995. These statements relate to future
events or our future intentions or performance. All statements other than
statements of historical fact may be forward-looking statements.
Forward-looking statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "plan", "continue", "estimate",
"demonstrate", "expect", "may", "will", "project", "predict", "potential",
"targeting", "intend", "could", "might", "should", "believe", "would" and
similar expressions and include statements relating to, among other things,
the targeted production levels going forward; the increased borrowing base
under the Corporation's Credit Facility; the Corporation's expectation that
the increased borrowing base will provide significant financial flexibility in
support of Advantage's future capital program requirements and general
corporate purposes; and the Corporation's Phase VII capital development
program and the expected increase to production therefrom and the timing
thereof. Advantage's actual decisions, activities, results, performance or
achievement could differ materially from those expressed in, or implied by,
such forward-looking statements and, accordingly, no assurances can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur or, if any of them do, what benefits that Advantage will
derive from them.
These forward-looking statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond Advantage's control, including,
but not limited to: the impact of general economic and industry conditions;
changes in laws and regulations including the adoption of new environmental
laws and regulations and changes in how they are interpreted and enforced;
fluctuations in commodity prices and foreign exchange and interest rates;
stock market volatility and market valuations; liabilities inherent in oil and
natural gas operations; uncertainties associated with estimating oil and
natural gas reserves; competition for, among other things, capital,
acquisitions of reserves, undeveloped lands and skilled personnel; incorrect
assessments of the value of acquisitions; changes in income tax laws or
changes in tax laws and incentive programs relating to the oil and gas
industry; environmental risks; geological, technical, drilling and processing
problems and other difficulties in producing, transporting and marketing
petroleum reserves; unexpected drilling results; changes or fluctuations in
production levels; failure to achieve anticipated production levels; delays in
anticipated timing of drilling and completion of wells; obtaining required
approvals of regulatory authorities; and the other risks considered under
"Risk Factors" in Advantage's Annual Information Form dated March 27, 2014,
which is available at www.sedar.com and www.advantageog.com.
With respect to forward-looking statements contained in this press release,
Advantage has made assumptions regarding: current commodity prices and royalty
regimes; availability of skilled labour; timing and amount of capital
expenditures; future exchange rates; the price of oil and natural gas; the
impact of increasing competition; conditions in general economic and financial
markets; availability of drilling and related equipment; effects of regulation
by governmental agencies; royalty rates; future operating costs; that the
Corporation will have sufficient cash flow, debt or equity sources or other
financial resources required to fund its capital and operating expenditures
and requirements as needed; that the Corporation's conduct and results of
operations will be consistent with its expectations; that the Corporation will
have the ability to develop the Corporation's properties in the manner
currently contemplated; current or, where applicable, proposed assumed
industry conditions, laws and regulations will continue in effect or as
anticipated; and the estimates of the Corporation's production and reserves
volumes and the assumptions related thereto (including commodity prices and
development costs) are accurate in all material respects.
These forward-looking statements are made as of the date of this press release
and the Corporation disclaims any intent or obligation to update publicly any
forward-looking statements, whether as a result of new information, future
events or results or otherwise, other than as required by applicable
SOURCE Advantage Oil & Gas Ltd.
Toll free: 1-866-393-0393
Advantage Oil & Gas Ltd.
300, 440 - 2^nd Avenue SW
Phone: (403) 718-8000
Fax: (403) 718-8332
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