- Hemisphere Energy (HME) establishes new $35 million credit facility and announces early payout of its term loan
- As part of entering into the credit facility, Hemisphere has fully repaid and terminated its existing term loan with Cibolo Energy Partners
- Hemisphere’s former term loan allowed it to grow its operations, reserves, and cash flow over the past four years
- It intends to drill up to three wells in Atlee Buffalo by the end of the third quarter and will use any excess cash flow to further pay down debt
- Hemisphere Energy Corporation (HME) is down 1.09 per cent and is trading at C$0.91 at 11:56 am ET
Hemisphere Energy Corporation (HME) has entered into a two-year term facility with ATB Financial, providing for borrowings of up to $35 million.
As part of entering into the credit facility, Hemisphere has fully repaid and terminated its existing term loan with Cibolo Energy Partners.
The refinancing resulting from the new credit facility is expected to provide additional flexibility to Hemisphere and is anticipated to result in a significant reduction in corporate interest costs for Hemisphere moving forward.
Hemisphere’s former term loan was instrumental in allowing it to grow its operations, reserves, and cash flow over the past four years such that Hemisphere could return to a reserve-based loan with a Canadian institution that offers a long-term partnership to help support further growth.
Hemisphere’s 2021 plans remain unchanged from previously announced guidance. It intends to drill up to three wells in Atlee Buffalo by the end of the third quarter and will use any excess cash flow to further pay down debt.
Hemisphere is a Canadian oil company focused on the sustainable growth of its high netback, low decline conventional heavy oil assets through water and polymer flood enhanced recovery methods.
Hemisphere Energy Corporation (HME) is down 1.09 per cent and is trading at C$0.91 at 11:56 am ET.
