Questerre Energy Corp
. (TSX: T.QEC
) said that it has secured a $26.5 million credit facility with a Canadian chartered bank.
According to the Questerre Energy press release
, the credit facility is a revolving operating demand loan. Any borrowing under the facility, with the exception of Letters of Credit, bears interest at the bank's prime interest rate and an applicable basis point margin based on the ratio of debt to cash flow measured quarterly.
The bank's current prime rate is 3% per annum. The facility is secured by a revolving credit agreement, a $50 million debenture with a first floating charge over all assets of the company and a general assignment of books debts.
"This credit facility is an important part of our financing strategy for the next 12-18 months,” said Michael Binnion, President and CEO. “Together with our existing cash flow and working capital, it will provide the flexibility to continue and accelerate development of the Kakwa-Resthaven area over the next year."
Questerre’s Montney acreage in the Kakwa-Resthaven area of Alberta has a best estimate of 100 million barrels of oil equivalent in prospective resources and 32 million barrels of oil equivalent in economic contingent resources.
Questerre is an oil and gas exploration, development and production company.
On Friday, Questerre was trading at $0.87 a share. The company had a market cap of $204.4 million, based on 234.9 million shares outstanding.