Hawk Exploration Ltd.’s credit facility was downsized to CA$11 million from CA$13.5 million following the lender’s annual review, the company said July 15. Lower commodity prices helped drive the facility reduction, the company added.
There is a CA$7 million revolving demand facility and a CA$4 million term facility. The term facility requires principal repayments of CA$2 million by Dec. 31, and another CA$2 million by May 31, 2016. These will be funded through operations cash flow, but additional sources might be required. These could include asset disposition proceeds, equity issuance proceeds or an increased facility, Hawk said.
On July 15, there was CA$9.9 million drawn on the existing credit facility.
Calgary, Alberta-based Hawk Exploration Ltd. produces conventional crude oil and natural gas in western Canada.
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