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 November 16, 2015 - 8:00 PM EST
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Lightstream Announces Borrowing Base Re-Determination of Credit Faciltiy and Falher Well Results

CALGARY, ALBERTA--(Marketwired - Nov. 16, 2015) - Lightstream Resources Ltd. (the "Company" or "Lightstream") (TSX:LTS) announces the results of the semi-annual borrowing base re-determination of our secured termed credit facility ("Credit Facility"), resulting in approximately $200 million in available liquidity based on September 30, 2015 debt balances.

Effective November 13, 2015, the borrowing base of our Credit Facility has been reduced to $550 million from $750 million. The Credit Facility currently matures in June 2017 and the single financial covenant limits the ratio of facility borrowing to trailing twelve month EBITDA until June 2016 to 3.75 times, which increases to 4.25 times in the second half of 2016 and decreases to 4.0 times for the first half of 2017. At September 30, 2015, we were in compliance with that covenant with a ratio of 1.0 time.

In this low commodity price environment, we are committed to a conservative capital plan funded though internally generated cash flow, and to using any surplus cash to reduce debt. Should the macro environment of service costs and commodity pricing improve to warrant an increased drilling program, we anticipate the revised borrowing base and current credit capacity of approximately $200 million to provide an adequate level of liquidity to fund such a program.


Throughout 2015 we have been actively drilling Falher gas wells in our Cardium business unit, while managing the capacity at our facilities in this area. Subsequent to the third quarter 2015, we completed a 100% operated high-impact Falher gas well. This well is presently on production at an initial rate of over 12 mmcf/d, which is higher than our original expectation. We are pleased with the performance of this play and based on current infrastructure and processing capacity, we expect our average and exit production for 2015 to continue to be within our stated guidance ranges.

Lightstream Resources Ltd. is an oil and gas exploration and production company focused on light oil in the Bakken and Cardium resource plays. We are committed to delivering industry leading operating netbacks, strong cash flows and consistent operating results through leading edge technology applied to a multi-year inventory of existing and emerging resource play opportunities. Our long-term strategy is to efficiently develop our assets and deliver an attractive dividend yield.

Forward Looking Statements. Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to, but not limited to Lightstream's average and exit production guidance for 2015; the finalization of the amendment of our credit facility; our liquidity position and the adequacy of our liquidity position to fund an increased drilling program our expectation that capital expenditures will be funded through cash flow.

The forward-looking statements are based upon certain material factors and expectations and assumptions of Lightstream including, without limitation: that a formal credit facility agreement on the terms stated herein will be executed by the parties; Lightstream will continue to conduct its operations in a manner consistent with past operations; the general continuance of current industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes, the accuracy of the estimates of Lightstream's reserves and resource volumes; certain commodity price and other cost assumptions; and the continued availability of adequate financing and cash flow to fund its planned expenditures. Although Lightstream believes the material factors, expectations and assumptions on which the forward-looking statements are based are reasonable, no assurance can be given that these factors, expectations and assumptions will prove to be correct.

The forward-looking statements in this press release are not guarantees of future performance and should not be unduly relied upon. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, but not limited to: failure to formalize the amended credit facility on anticipated terms; changes in commodity prices and exchange rates; general conditions in the oil and gas industry; operational risks in development, exploration and production; unanticipated operating results or production declines; delays or changes in exploration or development plans; the uncertainty of oil and gas reserve estimates; increase in costs; reliance on industry partners; availability of equipment and personnel; changes in tax or environmental laws, royalty rates or other regulatory matters; increased debt levels or debt service requirements; limited, unfavorable or lack of access to capital markets; a lack of adequate insurance coverage; and the impact of competition. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at Except as may be required by applicable securities laws, Lightstream assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

John D. Wright
President and Chief Executive Officer

Peter D. Scott
Senior Vice President and Chief Financial Officer

Annie Belecki
General Counsel

Source: Marketwired (November 16, 2015 - 8:00 PM EST)

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