Kelt Announces Completion of the Sale of Its Inga Assets

Source: www.gulfoilandgas.com 8/21/2020, Location: North America

Kelt Exploration Ltd. (“Kelt”) has completed its previously announced disposition of oil and gas assets in its Inga/Fireweed/Stoddart Division (the “Inga Assets”), located in British Columbia, to ConocoPhillips (the “Purchaser”). The effective date for closing adjustments relating to the disposition was July 1, 2020. Kelt received gross cash proceeds of $510.0 million, prior to closing adjustments. In addition, the Purchaser has assumed certain specific financial obligations related to the Inga Assets in the amount of approximately $41.0 million.

Kelt has a large inventory of future drilling locations on its remaining Montney and Charlie Lake land holdings at Wembley/Pipestone (Alberta) where the Company owns 107,155 net acres (167 sections) of Montney rights, at Oak/Flatrock (British Columbia) where the Company owns 203,661 net acres (318 sections) of Montney rights and in Alberta where the Company owns 74,720 net acres (117 sections) of Charlie Lake rights.

Kelt’s Board of Directors has approved $20.0 million in capital expenditures for the second half of 2020, excluding capital expenditures that are part of the closing adjustments with respect to the sale of the Inga Assets. During the second half of 2020, Kelt expects to drill four Montney wells and complete and tie-in two Montney wells at Wembley/Pipestone where the Company has access to extensive infrastructure, including three major gas processing plants in the area, of which Kelt has an ownership interest in two of the gas plants and a firm service contract at the third gas plant.

Concurrently with the completion of the sale of its Inga Assets, Kelt has paid out all amounts outstanding under its existing $350.0 million revolving committed term credit facility with a syndicate of lenders. For business continuity purposes, Kelt has entered into a new $20.0 million demand revolving credit facility with a Canadian chartered bank. The Company expects to exit 2020 with a positive working capital position and, at present, does not expect to put in place a syndicated term credit facility prior to 2021.

On August 21, 2020, Kelt mailed a redemption notice (the “Notice”) to the registered holders of its 5.00% convertible unsecured subordinated debentures due May 31, 2021 (the “Debentures”) and has delivered a copy of the Notice to Computershare Trust Company of Canada, as debenture trustee. Pursuant to the Notice, Kelt will redeem the $89,910,000 of outstanding principal amount of the Debentures plus all accrued but unpaid interest up to but excluding the date of redemption (the “Redemption Date”). The Redemption Date is October 3, 2020. In connection with the redemption of the Debentures, the Debentures will be delisted from the Toronto Stock Exchange.

Kelt will continue to reassess its ability to reasonably estimate and provide annual financial guidance and plans to continue to provide corporate updates during this period of heightened commodity price volatility and economic uncertainty.


Netherlands/Holland >>  1/26/2022 - The Hamburg-based independent operator of solar and wind plants Blue Elephant Energy AG (BEE) signed the acquisition of six ready-to build solar parks...
Malaysia >>  1/25/2022 - Hibiscus Petroleum Berhad (MK) (“Hibiscus Petroleum”) is pleased to announce that its indirect wholly-owned subsidiary, Peninsula Hibiscus Sdn Bhd (“P...

United States >>  1/25/2022 - Chesapeake Energy Corporation (CHK) ("Chesapeake") announced significant transactions designed to strengthen its asset portfolio, deliver higher free ...
Myanmar >>  1/24/2022 - According to TotalEnergies EP Myanmar’s decision, dated January 21, 2022, to withdraw its investment and operatorship in the Yadana project and Moatta...

Australia >>  1/21/2022 - Triangle Energy (Global) Limited provides the following update regarding the WA-481-P transaction with Pilot Energy Limited (Pilot).

Trian...

Myanmar >>  1/21/2022 - Following the coup of 1st February 2021 in Myanmar, TotalEnergies has firmly condemned on several occasions the abuses and human rights violations tak...




Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.