Journey Energy Provides Update on Term Debt Rescheduling and Operations
Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) has announced updates on its term debt rescheduling and operations. Key points include:
1. Agreement with AIMCo to amend repayment terms of outstanding balance, extending debt maturity to August 29, 2025.
2. Divestment of assets in Berrymoor and Keystone, Alberta, with sales volumes of approximately 130 boe/d.
3. Gilby Power Project progressing towards March 2025 in-service-date.
4. Spartan Delta Corp. drilling two Duvernay wells with Journey's 31.38% working interest.
5. Third quarter production guidance between 10,900-11,100 boe/d (55% liquids).
6. Adjusted Funds Flow for Q3 forecast at $13-14 million.
7. Continued focus on prudent business expansion and debt repayment.
Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) ha annunciato aggiornamenti sulla ristrutturazione del debito a lungo termine e sulle operazioni. I punti chiave includono:
1. Accordo con AIMCo per modificare i termini di rimborso del saldo in sospeso, estendendo la scadenza del debito al 29 agosto 2025.
2. Disinvestimento di asset a Berrymoor e Keystone, Alberta, con volumi di vendita di circa 130 boe/giorno.
3. Il progetto di energia di Gilby sta procedendo verso la data di entrata in servizio prevista per marzo 2025.
4. Spartan Delta Corp. sta perforando due pozzi Duvernay con l'interesse lavorativo del 31,38% di Journey.
5. Indicazioni sulla produzione per il terzo trimestre comprese tra 10.900-11.100 boe/giorno (55% liquidi).
6. Flussi di cassa corretti per il terzo trimestre previsti tra 13 e 14 milioni di dollari.
7. Continua attenzione all'espansione prudente del business e al rimborso del debito.
Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) ha anunciado actualizaciones sobre la reestructuración de su deuda a largo plazo y operaciones. Los puntos clave incluyen:
1. Acuerdo con AIMCo para enmendar los términos de reembolso del saldo pendiente, extendiendo el vencimiento de la deuda hasta el 29 de agosto de 2025.
2. Desinversión de activos en Berrymoor y Keystone, Alberta, con volúmenes de venta de aproximadamente 130 boe/día.
3. El Proyecto de Energía Gilby avanza hacia la fecha prevista de servicio en marzo de 2025.
4. Spartan Delta Corp. perforando dos pozos Duvernay con un interés de trabajo del 31,38% de Journey.
5. Guía de producción del tercer trimestre entre 10,900-11,100 boe/día (55% líquidos).
6. Flujo de fondos ajustado para el Q3 pronosticado entre $13-14 millones.
7. Enfoque continuo en la expansión prudente del negocio y el reembolso de deuda.
Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF)는 장기 부채 재조정 및 운영 업데이트를 발표했습니다. 주요 사항은 다음과 같습니다:
1. AIMCo와의 합의로 미지급 잔액의 상환 조건을 수정하여 부채 만기를 2025년 8월 29일로 연장했습니다.
2. 앨버타 주 Berrymoor와 Keystone에서 자산 매각, 판매량은 약 130 boe/일입니다.
3. Gilby 전력 프로젝트가 2025년 3월 서비스 시작일을 향해 진행 중입니다.
4. Spartan Delta Corp.가 Journey의 31.38% 지분으로 두 개의 Duvernay 우물을 시추하고 있습니다.
5. 3분기 생산 가이드는 10,900-11,100 boe/일(55% 액체)로 예상됩니다.
6. 3분기 조정 자금 흐름은 1천3백만~1천4백만 달러로 예상됩니다.
7. 신중한 사업 확장 및 부채 상환에 지속적으로 집중하고 있습니다.
Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) a annoncé des mises à jour concernant le rééchelonnement de sa dette à long terme et ses opérations. Les points clés incluent:
1. Accord avec AIMCo pour modifier les conditions de remboursement du solde en cours, prolongeant l'échéance de la dette jusqu'au 29 août 2025.
2. Désinvestissement d'actifs à Berrymoor et Keystone, Alberta, avec des volumes de vente d'environ 130 boe/jour.
3. Le projet de centrale de Gilby progresse vers la date de mise en service prévue en mars 2025.
4. Spartan Delta Corp. fore deux puits Duvernay avec un intérêt de travail de 31,38 % pour Journey.
5. Prévisions de production pour le troisième trimestre entre 10 900 et 11 100 boe/jour (55 % liquides).
6. Flux de fonds ajustés pour le T3 prévus entre 13 et 14 millions de dollars.
7. Focalisation continue sur l'expansion prudente de l'entreprise et le remboursement de la dette.
Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) hat Updates zur Umstrukturierung seiner langfristigen Schulden und zu den Betriebsergebnissen bekannt gegeben. Wichtige Punkte sind:
1. Vereinbarung mit AIMCo zur Änderung der Rückzahlungsbedingungen des ausstehenden Saldos, Verlängerung der Fälligkeitsfrist bis zum 29. August 2025.
2. Veräußerung von Vermögenswerten in Berrymoor und Keystone, Alberta, mit Verkaufsvolumen von etwa 130 boe/Tag.
3. Das Gilby Power Project schreitet auf den geplanten Inbetriebnahmezeitpunkt im März 2025 zu.
4. Spartan Delta Corp. bohrt zwei Duvernay-Bohrlöcher mit einer Arbeitsbeteiligung von 31,38 % von Journey.
5. Produktionsprognose für das dritte Quartal zwischen 10.900-11.100 boe/Tag (55 % Flüssigkeiten).
6. Anpassung des Fondsflusses für Q3 wird auf 13-14 Millionen USD prognostiziert.
7. Fortdauernde Fokussierung auf eine vorsichtige Geschäftsausweitung und Schuldenrückzahlung.
- Agreement with AIMCo to extend debt maturity and reschedule repayments, providing enhanced funding for Duvernay joint venture
- Completion of minor dispositions of non-core assets, reducing end-of-life costs by over $20 million
- Gilby Power Project progressing towards March 2025 in-service-date
- Spartan Delta Corp. drilling two Duvernay wells with Journey's 31.38% working interest
- Q3 Adjusted Funds Flow forecast at $13-14 million
- Remaining indebtedness to AIMCo at the end of 2024 will be $18.2 million, higher than the previous $9.0 million under the old repayment schedule
- Divestment of assets in Berrymoor and Keystone, reducing sales volumes by 130 boe/d
- Stolberg volumes (300 boe/d) remain shut-in, expected to continue until late 2024
- Third quarter volumes impacted by Stolberg shut-ins and other minor natural gas property shut-ins
- Lower than forecast commodity prices, particularly for natural gas, partially offsetting positive impact of lower operating costs on funds flow
Calgary, Alberta--(Newsfile Corp. - October 10, 2024) - Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) ("Journey" or the "Company") is pleased to provide an operational and activity update. Third quarter, 2024 financial results are scheduled to be released on November 7, 2024.
TERM-DEBT REPAYMENT UPDATE
Journey and its long-term capital provider and largest shareholder, Alberta Investment Management Corporation ("AIMCo"), have reached an agreement today to amend the repayment terms of its remaining outstanding balance. Under the existing repayment schedule, a large repayment of
OPERATIONAL UPDATE
Journey has completed a divestment of assets in Berrymoor and Keystone, Alberta effective October 1, 2024. The sales volumes associated with these assets were approximately 130 boe/d (
CAPITAL PROGRAM UPDATE
Journey's Gilby Power Project continues to progress towards the projected in-service-date ("ISD") of March 2025. Journey has not received an ISD date for the Mazeppa project at this point and anticipates moving some previously forecasted Mazeppa expenditures from 2024 into 2025.
Spartan Delta Corp. has drilled the first of two Duvernay wells and is now drilling the second well. Journey's working interest in these two wells is
OUTLOOK & GUIDANCE
Journey is maintaining its current guidance pertaining to sales volumes and intends to provide additional guidance later in the year as it completes the 2025 budget process including the refinement of the Duvernay capital spending with its partner. Journey's Stolberg volumes (300 boe/d,
Adjusted Funds Flow for the third quarter is forecast to be
Journey has embarked on a careful and prudent expansion of its business plan to grow the Company profitably. This includes executing on acquisitions the timing of which can be unpredictable and when executed on, can defer drilling plans. In addition, this business plan includes the repayment of the remainder of the outstanding AIMCo term debt. AIMCo has been instrumental in helping achieve the Company's goals by working with us once again to adjust their debt repayments in the face of very low natural gas prices.
About the Company
Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in western Canada. Journey's strategy is to grow its production base by drilling on its existing core lands, implementing water flood projects, executing on accretive acquisitions. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods. In addition, Journey is expanding its electricity generation footprint with one project operating in Countess, Alberta; one under construction in Gilby; and one in regulatory approvals in High River, Alberta.
For further information contact:
Alex G. Verge
President and Chief Executive Officer
403-303-3232
alex.verge@journeyenergy.ca
or
Gerry Gilewicz
Chief Financial Officer
403-303-3238
gerry.gilewicz@journeyenergy.ca
Journey Energy Inc.
700, 517 - 10th Avenue SW
Calgary, AB T2R 0A8
403-294-1635
www.journeyenergy.ca
ADVISORIES
This press release contains forward-looking statements and forward-looking information (collectively "forward looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of the anticipated future operations, management focus, strategies, financial, operating and production results, industry conditions, commodity prices and business opportunities. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding decline rates, anticipated netbacks, drilling inventory, estimated average drill, complete and equip and tie-in costs, anticipated potential of the Assets including, but not limited to, EOR performance and opportunities, capacity of infrastructure, potential reduction in operating costs, production guidance, total payout ratio, capital program and allocation thereof, future production, decline rates, funds flow, net debt, net debt to adjusted funds flow, exchange rates, reserve life, development and drilling plans, well economics, future cost reductions, potential growth, and the source of funding Journey's capital spending. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future.
The forward-looking information is based on certain key expectations and assumptions made by management, including expectations and assumptions concerning prevailing commodity prices and differentials, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions, including the Acquisition, the ability to market oil and natural gas successfully and the ability to access capital. Although we believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Journey can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect the operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedarplus.ca). These forward looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Journeys prospective results of operations, funds flow, netbacks, debt, payout ratio well economics and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for providing further information about Journey's anticipated future business operations. Journey disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, which involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Journey, including, without limitation, those listed under "Risk Factors" and "Forward Looking Statements" in the Annual Information Form filed on www.SEDARplus.ca on March 28, 2024. Forward-looking information may relate to the future outlook and anticipated events or results and may include statements regarding the business strategy and plans and objectives. Particularly, forward-looking information in this press release includes, but is not limited to, information concerning Journey's drilling and other operational plans, production rates, and long-term objectives. Journey cautions investors in Journey's securities about important factors that could cause Journey's actual results to differ materially from those projected in any forward-looking statements included in this press release. Information in this press release about Journey's prospective funds flows and financial position is based on assumptions about future events, including economic conditions and courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that information regarding Journey's financial outlook should not be used for purposes other than those disclosed herein. Forward-looking information contained in this press release is based on current estimates, expectations and projections, which we believe are reasonable as of the current date. No assurance can be given that the expectations set out in the Prospectus or herein will prove to be correct and accordingly, you should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as required by applicable securities law.
Non-IFRS Measures
The Company uses the following non-IFRS measures in evaluating corporate performance. These terms do not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculation of similar measures by other companies.
"Adjusted Funds Flow" is calculated by taking "cash flow provided by operating activities" from the financial statements and adding or deducting: changes in non-cash working capital; non-recurring "other" income; transaction costs; and decommissioning costs. Adjusted Funds Flow per share is calculated as Adjusted Funds Flow divided by the weighted-average number of shares outstanding in the period. Because Adjusted Funds Flow and Adjusted Funds Flow per share are not impacted by fluctuations in non-cash working capital balances, we believe these measures are more indicative of performance than the GAAP measured "cash flow generated from operating activities". In addition, Journey excludes transaction costs from the definition of Adjusted Funds Flow, as these expenses are generally in respect of capital acquisition transactions. The Company considers Adjusted Funds Flow a key performance measure as it demonstrates the Company's ability to generate funds necessary to repay debt and to fund future growth through capital investment. Journey's determination of Adjusted Funds Flow may not be comparable to that reported by other companies. Journey also presents "Adjusted Funds Flow per basic share" where per share amounts are calculated using the weighted average shares outstanding consistent with the calculation of net income (loss) per share, which per share amount is calculated under IFRS and is more fully described in the notes to the audited, year-end consolidated financial statements.
Journey uses "Capital Expenditures" to measure its capital investment level compared to the Company's annual budgeted capital expenditures for its organic capital program, excluding acquisitions or dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. Journey then adjusts its capital expenditures for acquisition and divestiture ("A&D") activity to give a more complete analysis for its capital spending used for finding, development and acquisition purposes.
Measurements
All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.
Where amounts are expressed in a barrel of oil equivalent ("boe"), or barrel of oil equivalent per day ("boe/d"), natural gas volumes have been converted to barrels of oil equivalent at nine (6) thousand cubic feet ("Mcf") to one (1) barrel. Use of the term boe may be misleading particularly if used in isolation. The boe conversion ratio of 6 Mcf to 1 barrel ("Bbl") of oil or natural gas liquids is based on an energy equivalency conversion methodology primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
Abbreviations
The following abbreviations are used throughout this press release and have the ascribed meanings:
| AIMCo | Alberta Investment Management Corporation, an Alberta government crown corporation |
| bbl | Barrel |
| bbls | Barrels |
| boe | barrels of oil equivalent (see conversion statement below) |
| boe/d | barrels of oil equivalent per day |
| WTI | West Texas Intermediate benchmark Oil price. This crude oil is light/sweet with API gravity of 39.6 degrees and sulfur content of |
All volumes in this press release refer to the sales volumes of crude oil, natural gas and associated by-products measured at the point of sale to third-party purchasers. For natural gas, this occurs after the removal of natural gas liquids.
No securities regulatory authority has either approved or disapproved of the contents of this press release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226334
FAQ
What are the new repayment terms for Journey Energy's (JRNGF) debt with AIMCo?
How much is Journey Energy's (JRNGF) remaining indebtedness to AIMCo expected to be at the end of 2024?
What is the production guidance for Journey Energy (JRNGF) in Q3 2024?
What is the forecast Adjusted Funds Flow for Journey Energy (JRNGF) in Q3 2024?
When is the expected in-service-date for Journey Energy's (JRNGF) Gilby Power Project?
