Montney
Source: Crew Energy
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  • Crew Energy (CR) has completed the sale of certain non-core assets at Attachie and Portage in NE BC for gross proceeds of $130 million
  • The company intends to use the net proceeds from the disposition to redeem $128 million principal amount of its 6.500-per-cent senior unsecured notes due 2024
  • With the sale, Crew has successfully monetized a non-core portion of its asset base to focus on production growth in the Greater Septimus and Groundbirch areas
  • Crew is a natural gas and liquids producer
  • Crew Energy Inc. was up 4.153 per cent, trading at $6.27 as at 1:58 PM ET

Crew Energy (CR) has completed the sale of certain non-core assets at Attachie and Portage in NE British Columbia for gross proceeds of $130 million.

The company intends to use the net proceeds from the disposition to redeem $128 million principal amount of its 6.500-per-cent senior unsecured notes due 2024, of which an aggregate principal amount of $300 million is currently outstanding.

Among the assets disposed are approximately 47,025 net acres of Montney rights on land north of the Peace River with no associated production or facilities and total proved reserves of 4.7 million BOE (barrel of oil equivalents), representing 2.3 per cent of total corporate proved reserves, with associated future development capital of $25.7 million. 

Also disposed are total proved plus probable reserves of 34.2 million BOE, representing 8.5 per cent of total corporate proved plus probable reserves, with associated future development capital of $182.9 million.

Having completed the disposition, Crew has successfully monetized a non-core portion of its asset base to focus on production growth in the Greater Septimus and Groundbirch areas.

Jointly with the strong adjusted funds flow (AFF) and free AFFrealized to date in 2022, the proceeds from this transaction will further contribute to the company’s financial flexibility and form the basis for development of an updated strategic plan that builds on the momentum realized over the past 24 months.

Regarding the receipt of the disposition proceeds, Crew today issued a notice of partial redemption for $128 million principal amount of its outstanding 2024 notes at a redemption 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 of September 19, 2022.

In addition to benefitting from improvements in its overall cost of debt, as a result of this partial redemption, the  company has also strengthened the balance sheet and helped position Crew for long-term sustainability.

The company is currently undrawn on its $185 million 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.

Crew is a natural gas and liquids producer.

Crew Energy Inc. was up 4.153 per cent, trading at $6.27 as at 1:58 PM ET.


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