Canadian company Athabasca Oil has announced that its banking syndicate has cut its credit facility to C$42m ($30.72m) amid the current Covid-19 crisis. This represents a 65% cut from the earlier C$120m ($87.8m).
The creditors revised the reserve-based facility to 30 November.
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The oilsands producer’s credit has been cut by more than half and the company has been urged to seek federal aid in order to survive the oil price crash induced by the novel coronavirus outbreak.
Athabasca Oil also noted that it continues to pursue opportunities to access credit assistance offered by the Canadian Government.
Athabasca Oil said in a press statement: “The company continues to pursue opportunities to access credit support offered by the Government of Canada during this uncertain economic environment created by the Covid-19 pandemic.
“Athabasca remains focused on maximising corporate funds flow and maintaining strong corporate liquidity. As at 29 May 2020, the company has cash and cash equivalents of approximately C$330m ($241.4m) inclusive of restricted cash.”
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By GlobalDataLast month, the company reported financial results for Q1 2020. It produced approximately 28,300 barrels of thermal oil per day (boepd) and about 8,250 boepd in light oil.
In December 2018, Athabasca Oil signed a C$265m ($197.74m) agreement to sell its Leismer pipelines and Cheecham storage terminal to Enbridge.
In February 2017, the company completed the acquisition of Statoil’s entire oil sands operations in the Canadian province of Alberta.
