CALGARY, AB, October 31, 2022 /CNW/ – Journey Energy Inc. PLEASURE JRNGF (“Trip” or the “company“) is pleased to announce the completion of its transformative acquisition and its financial and operating results for the three and nine month periods ended 09/302022. The full close and management’s discussion and analysis for the periods ended 09/30/2022 and 2021 will be published www.sedar.com and on the company’s website www.journeyenergy.ca.
COMPLETION OF THE ENERPLUS TRANSACTION
Journey announces that it has completed the acquisition for the purchase of oil and gas assets (the “acquisition“) currently produces about 4,000 boe/d (71% oil and NGLs). October 31, 2022. The assets are located in the medicine hatKaybob, Ferrier and Ante Creek areas of alberta. The purchase price for the acquisition was $140 million, before closing customizations. The acquisition is highly profitable for both adjusted cash flow and net asset value per share, while still allowing the company to maintain a conservative corporate debt ratio.
In addition to long-term stable production, Journey has identified numerous near-term optimization projects, infill drilling opportunities, and waterflood and tertiary extensions that will mitigate future declines. The acquisition includes 1,847 square kilometers of 3D seismic data and 18,666 linear kilometers of 2D seismic data, more than triple Journey’s entire seismic database. As part of the closing, Journey’s largest shareholder and sole lender, AIMCo, has not only approved the acquisition, but has also agreed to a term extension $23.8 million Tranche of the term debt that was due on 09/30/2022 to March 312023. The extension of the maturity of the debt will provide additional liquidity while the assets are integrated into Journey’s operations.
Immediately upon completion of the acquisition, Journey’s estimated net debt is…
