CALGARY, AB , April 21,
2022 /CNW/ - Stampede Drilling Inc. ("Stampede" or
the "Corporation") (TSXV: SDI) is pleased to confirm the
acquisition, from a third party, of three telescopic double
drilling rigs, two top drives and ancillary equipment
(collectively, the "Rigs"). The purchase price was approximately
$5 million, paid in cash. Stampede
anticipates an additional $3 million
of incremental capital expenditures during the second quarter of
2022 for recertifications and to upgrade the three Rigs to be
consistent with its fleet of modern drilling rigs. Stampede has
committed the three Rigs to customers coming out of spring
breakup.
Additionally, Stampede has entered into a new $25 million credit facility with HSBC Bank Canada
(the "Credit Facility"). Under the Credit Facility, which has an
initial term of three years. Stampede will have an available limit
of $18 million under a revolving
facility and $7 million under a term
loan (the "Term Loan Facility"). The proceeds of the Term Loan
Facility were used to finance the acquisition of the Rigs, with the
balance anticipated to be used for capital expenditures for its
fleet and to repay amounts outstanding under Stampede's current
revolving credit facility.
The principal amount outstanding under the Term Loan Facility
shall be repaid based on a notional amortization rate of 10% per
annum. The Credit Facility bears interest and financial covenants
consistent with the Corporation's current credit facility and
provides for customary positive and negative covenants, including
limitations on debt, acquisitions, dispositions, distributions and
capital expenditures. At closing of the acquisition, the
Corporation is in compliance with the terms and conditions of the
Credit Facility.
"The new Credit Facility positions Stampede with a stable and
flexible capital structure and allows us to focus on operations,
competitive positioning, and opportunistic growth.", stated
Lyle Whitmarsh, President and CEO of
Stampede.
During the first quarter of 2022, Stampede had all ten of its
rigs fully operational and fully crewed. Stampede's first quarter
utilization of 72% was significantly above the Canadian industry
utilization of 38% (source: CAOEC). Stampede will report its first
quarter 2022 results on May 12, 2022,
with full financial statements available on Sedar (www.sedar.com)
thereafter.
Forward-Looking
Information
Certain statements contained in this News Release constitute
forward-looking statements or forward-looking information
(collectively, "forward-looking information").
Forward-looking information relates to future events or the
Corporation's future performance. All information other than
statements of historical fact is forward-looking information. The
use of any of the words "anticipate", "plan", "contemplate",
"continue", "estimate", "expect", "intend", "propose", "might",
"may", "will", "could", "should", "believe", "predict", and
"forecast" are intended to identify forward-looking
information.
This News Release contains forward-looking information
pertaining to, among other things: expectations relating to future
capital expenditures associated with the Rigs; expectations
relating to the operational date of the Rigs; Stampede's ability to
successfully integrate the Rigs into its fleet; the anticipated use
of proceeds from the Credit Facility; and Stampede's ability to
continue to comply with the covenants of the Credit Facility.
Forward-looking information is presented in this News Release
for the purpose of assisting investors and others in understanding
certain key elements of the Corporation's operations and business
plan, as well as the objectives, strategic priorities and business
outlook of the Corporation, and in obtaining a better understanding
of the Corporation's anticipated operating environment. Readers are
cautioned that such forward-looking information may not be
appropriate for other purposes.
Forward-looking information, by its very nature, is subject to
inherent risks and uncertainties and is based on many assumptions,
both general and specific, which give rise to the possibility that
actual results or events could differ materially from the
expectations of the Corporation expressed in or implied by such
forward-looking information and that the Corporation's business
outlook, objectives, plans and strategic priorities may not be
achieved. Macro-economic conditions, including public health
concerns (including the continued impact of the COVID-19 pandemic)
and other geopolitical risks, the condition of the global economy
and, specifically, the condition of the crude oil and natural gas
industry, and the ongoing significant volatility in world markets
may adversely impact drilling and completions programs, which could
materially adversely impact the Corporation.
In addition to other factors which may be identified in this
News Release, such forward-looking information is subject to
various risks, uncertainties and assumptions, including, but not
limited to: the condition of the global economy, including trade,
public health (including the impact of the COVID-19 pandemic) and
other geopolitical risks; the stability of the economic and
political environment in which the Corporation operates; future
commodity prices and the potential impact on the Corporation and
the industry in which the Corporation operates, including levels of
exploration and development activities; the success of the measures
implemented by the Corporation to ensure the safety of its field
and office employees and safe, efficient and reliable operations at
each of its drilling sites; the creditworthiness of the
Corporation's customers and counterparties; the effectiveness of
the Corporation's financial risk management policies at ensuring
all payables are paid within the pre-agreed credit terms; the
ability of the Corporation to retain qualified staff; the ability
of the Corporation to obtain financing on acceptable terms; the
impact of increasing competition; the belief that the Corporation's
principal sources of liquidity, its operating cash flows, operating
loan and debt and equity financings will be sufficient to service
its debt and fund its operations and other strategic opportunities;
the expected effects of seasonality and weather on the
Corporation's operations and business; the ability to protect and
maintain the Corporation's intellectual property; the ability of
the Corporation to maintain key customers; foreign currency
exchange rates; interest rates; the regulatory framework regarding
taxes and environmental matters in the jurisdictions in which the
Corporation operates; and the ability of the Corporation to
successfully implement key cost and discretionary spending plan
adjustments. Actual results and future events could differ
materially from those expected or estimated in such forward-looking
information. As a result, the Corporation cannot guarantee that any
forward-looking information will materialize and we caution you
against relying on any of this forward-looking information.
Accordingly, readers should not place undue reliance on
forward-looking information.
Additional information on these and other factors that the
Corporation's forward-looking information is subject to are
disclosed in the Corporation's management's discussion and analysis
and annual information form each dated March
24, 2022, and in other reports filed with the securities
regulatory authorities in Canada
from time to time and available on SEDAR (sedar.com).
Statements, including forward-looking information, are made as
of the date of this News Release and the Corporation does not
undertake any obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as may be required by applicable securities
laws. The forward-looking information contained in this News
Release is expressly qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Stampede Drilling Inc.