Granite Oil to continue to prioritize debt repayment in 2020 capital program
GRANITE OIL provides preliminary 2020 plans and announces the fall review of the Company's borrowing base redetermination of its credit facility has been completed. Granite is planning a capital program in 2020 that continues to prioritize significant debt repayment while growing production and adding producing reserves at highly efficient and economic metrics. Following a successful recompletion test in August 2019, in which the Company added new frack stages in a legacy producing well, the Company is confident this tool provides a means with which to accelerate these plans in 2020 while maintaining significant capital flexibility. Granite will enter 2020 with five shut-in wells that have been actively re-pressurized by the Company's EOR program since Q2 2019. These wells will form the basis of its recompletion program planned for the year, which will commence mid-January 2020 with its second recompletion. The Company has 11 additional wells identified as potential future recompletion candidates. The semi-annual borrowing base redetermination of Granite's credit facilities has been completed. The Company's lenders have mutually agreed to a renewed borrowing base of $47.5M with a current authorized amount of $42.5M, which will serve to reduce associated interest and standby costs. With year-end 2019 net debt expected to be approximately $39.5M, and with continued quarter-over-quarter debt reduction, the Company's credit facilities are more than enough to execute, or expand, its planned capital program in 2020. With a solid, lower-decline production base, a promising recompletion program focused on re-pressurized wells with significant production potential, and a large, proven drilling inventory, Granite will enter 2020 with strong optionality with which to navigate continued volatility in the energy environment. The Company expects to firm-up its 2020 budget shortly after the second recompletion test in January.