Petroshale Announces Operational, Production and Financial Update

Source Company Press Release
Company Lucero Energy Corp.
Tags Corporate: Overview/Strategy, Country: Canada, United States
Date July 03, 2019

PetroShale Inc. ("PetroShale" or the "Company") (TSXV: PSH, OTCQX: PSHIF) is pleased to announce an operational update and an increase in the borrowing base under our senior credit facility (the “Facility”).

PetroShale recently completed three (2.9 net) new wells on our operated Bear Chase drilling spacing unit (“DSU”) at South Berthold in the North Dakota Bakken / Three Forks play. Including initial results from these new wells, PetroShale’s current corporate production is approximately 9,500 barrels of oil equivalent per day (“boepd”). Corporate production will fluctuate, and is subject to natural declines, as these new wells continue to stabilize.

A total of eight (5.7 net) additional wells on three other operated DSUs are expected to be on-line in September. The production from these additional wells, and the new Bear Chase wells, is expected to contribute to the Company meeting its previously announced production guidance for the second half of 2019 of 10,000 to 11,000 boepd.

PetroShale’s senior lenders recently completed their review of the Company’s year end 2018 reserve report and we are pleased to announce that the borrowing base capacity under the Facility has been increased to US$140 million from US$125 million. The Facility’s maturity date was also extended to June 27, 2020, and may be further extended at such time or, at the option of the lenders, converted to a nonrevolving facility with a maturity date of June 27, 2021. In addition to the foregoing, all financial covenants under the Facility have been removed. The other material terms of the Facility remain unchanged. PetroShale is currently drawn approximately US$100 million, leaving US$40 million of undrawn capacity under the Facility.

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