Current PPY:CA Stock Info

Painted Pony appoints directors, increases credit facility

Painted Pony (ticker: PPY) closed its acquisition of 108 net sections in Northeast British Columbia from UGR Blair Creek, a subsidiary of Unconventional Resources Canada. Painted Pony paid for this acquisition with 41 million shares of the company, which equates to $224 million at current prices. Painted Pony will also assume UGR’s $48 million in net debt.

Painted Pony reports that the acquisition adds 197 P2 drilling locations, and about 2 Tcfe of 2P reserves. Current production from the properties is 51 MMcfe/d. The company now owns a total of 314 net sections, or 201,000 net acres in the Montney.

The acquisition increases expected average 2017 production by 12%, from 260 MMcfe/d to about 290 MMcfe/d.

$500 million credit facility

Painted Pony also announced that its credit facilities have increased to $500 million, consisting of available credit facilities of $400 million and a development line of $100 million. The development line of $100 million is anticipated to become available in stages of $50 million by October 31, 2017 and $50 million by April 30, 2018, subject to borrowing base review at those dates.

New Directors

Painted Pony announced two new Board of Directors members, effective May 16. Paul Beitel and George Voneiff have been named by ARC Energy and EnCap, respectively, as each of these companies holds a significant stake in Painted Pony.

Beitel is Managing Director at ARC Financial Corp. and co-leads ARC’s portfolio management team.  He holds a Bachelor of Science in Engineering from the University of Saskatchewan and a MBA from the University of Calgary. Beitel is a designated P. Eng in the Province of Alberta and is a member of the Association of Professional Engineers and Geoscientists of Alberta.

Voneiff is the CEO of Unconventional Resources, LLC, a U.S. exploration and production company, and is a director and co-founder of the Unconventional Resources Canada. He teaches graduate-level classes on Petroleum Economics and Reserves at Texas A&M University and is Co-Chair of the Executive Committee of the Texas A&M Petroleum Department Industry Advisory Board. Voneiff holds a Bachelor of Science and a Master of Science, both in Petroleum Engineering, from Texas A&M University.

New name

Finally, Painted Pony announced that it intends to change its name from “Painted Pony Petroleum Ltd.” to “Painted Pony Energy Ltd.” Once this name change has been completed, the company plans to change its trading symbol on the Toronto Stock Exchange from “PPY” to “PONY.” The company said it has already reserved “PONY” for this purpose.


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