Lightstream Announces Closing of Previously Announced US $200 Million Secured Note Transaction and Production Update

Lightstream Resources Ltd. (the “Company” or “Lightstream”) (TSX:LTS) announces that we have completed the issuance of US$200 million in second lien notes (“Secured Notes”) for cash proceeds, as described in our July 2, 2015 press release. Proceeds will be used to reduce the outstanding borrowing under our credit facility, increasing the credit available to approximately Cdn$375 million. This increased liquidity provides financial flexibility to help withstand the current low-price commodity environment and gives us optionality to accelerate our drilling program should current economic conditions improve.

The Secured Notes have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933, as amended. This press release does not constitute an offer to sell or the solicitation of an offer to buy the Secured Notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.


Our second quarter average production is estimated to be approximately 31,700 boepd (73% light oil and liquids) with first half production expected to average 33,400 boepd (74% light oil and liquids), in line with 2015 Guidance. Second quarter production was impacted by higher downtime associated with third party facility maintenance and spring break up. Production to date in July is estimated at 31,600 boepd.

We have seen encouraging results from the Falher gas play in our Cardium business unit, with two new liquids-rich gas wells on-stream in the quarter. We continue to evaluate further development drilling opportunities in this play to efficiently utilize our existing gas infrastructure.

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, debt repayment under our credit facility, our liquidity position, our second quarter and first half average production results, and Lightstream’s guidance for 2015.

The forward-looking statements are based upon certain material factors and expectations and assumptions of Lightstream including, without limitation: that 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: 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.

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