October 10, 2024 5:02 PM EDT | Source: Journey Energy Inc.
Calgary, Alberta–(Newsfile Corp. – October 10, 2024) – Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) (“Journey” or the “Company“) is pleased to provide an operational and activity update. The financial results for the third quarter of 2024 are expected to be released on November 7, 2024.
TERM-DEBT REPAYMENT UPDATE
Journey Energy Inc. and its long-term capital provider and largest shareholder, Alberta Investment Management Corporation (“AIMCo“), have come to an agreement to revise the repayment terms of the existing outstanding balance. This amendment involves blending a significant repayment of $11.1 million along with accrued interest, which was originally due on October 31, 2024, with the existing monthly repayments. Additionally, the maturity date of the debt has been extended from April 30, 2025 to August 29, 2025. Monthly principal repayments of $2.9 million will start in November 2024 and will continue until March 2025. Subsequently, there will be a reduction in principal repayments to $1.9 million from April 2025 to August 2025. This revised repayment schedule will assist the Company in funding its obligations under the Duvernay joint venture with Spartan Delta Corp.
OPERATIONAL UPDATE
Recently, Journey completed the sale of assets in Berrymoor and Keystone, Alberta, with sales volumes of approximately 130 boe/d (35% crude oil and natural gas liquids). This divestment, along with other minor asset dispositions, is part of Journey’s strategy to optimize its end-of-life costs by over $20 million by the end of 2024. The majority of these cost reductions are related to inactive assets.
CAPITAL PROGRAM UPDATE
Progress is being made on Journey’s Gilby Power Project, with the projected in-service-date (“ISD“) set for March 2025. The company is also waiting for further developments on the Mazeppa project and foresees some previously planned expenditures being moved to 2025.
As part of the Duvernay joint venture with Spartan Delta Corp., the first of two wells has been drilled, with Journey holding a working interest of 31.38% in these wells.
OUTLOOK & GUIDANCE
Journey maintains its current guidance on sales volumes and plans to provide updated guidance as it finalizes the 2025 budget, including refinements to the Duvernay capital spending with its partner. The Stolberg volumes are anticipated to remain shut-in until late 2024, impacting third quarter volumes. Adjusted Funds Flow for the third quarter is forecasted to be $13-14 million. Lower operating costs have positively impacted funds flow, offset by lower commodity prices.
Journey is strategically expanding its operations to grow profitably, which includes potential acquisitions that may affect drilling plans. Additionally, the company is focused on repaying the remaining AIMCo term debt, with the revised repayment terms reflecting the challenges posed by low natural gas prices.
About the Company
Journey Energy Inc. is a Canadian exploration and production firm focusing on conventional, oil-weighted operations in western Canada. The Company’s strategy involves growing its production base through drilling on existing core lands, implementing water flood projects, and executing accretive acquisitions. Journey aims to enhance its legacy oil pools through horizontal drilling and water floods, and is also expanding its presence in electricity generation with projects in Countess, Gilby, and High River, Alberta.
For more information:
Journey Energy Inc.
700, 517 – 10th Avenue SW
Calgary, AB T2R 0A8
403-294-1635
www.journeyenergy.ca
ADVISORIES
For additional information on the Company’s operational and financial performance, readers are advised to refer to the reports filed with applicable securities regulatory authorities, accessible through the SEDAR website.
