Cuda Oil and Gas Inc. Announces the Closing of the Refinancing of its $35 Million Credit Facility and a new $8 Million Demand Facility with its Canadian Institutional Lender

DGAP-News: Cuda Oil and Gas Inc. / Key word(s): Miscellaneous

03.07.2019 / 13:03
The issuer is solely responsible for the content of this announcement.

Calgary, Alberta--(Newsfile Corp. - July 3, 2019) - Cuda Oil and Gas Inc. (TSXV: CUDA) (OTC: JNEXF) ("Cuda" or the "Company") is pleased to announce it has signed a definitive agreement to refinance its CAD $35 million credit facility (the "Facility") with its Canadian institutional lender (the "Lender"). The refinancing includes the extension of the maturity of the Facility by one year to June 27, 2020. Interest on the Facility will continue to compound monthly at a rate of 10.5% per annum, payable monthly. In connection with the refinancing of the Facility, the Company issued 1,500,000 common share purchase warrants (the "Warrants") to the Lender. Each Warrant entitles the Lender to purchase one common share (each a "Common Share") of Cuda at an exercise price of CAD $0.65/Common Share for a period of 24 months.

In addition, a demand facility up to CAD $8 million (the "Additional Facility") is available to the Company. The maturity of the Additional Facility is December 31, 2019. Interest on the Additional Facility will compound monthly at a rate of 10.75% per annum, payable monthly. The proceeds on the Additional Facility will provide a financial back-stop to fund and execute the natural gas miscible flood program (the "Program") at the Barron Flats (Deep) Federal Unit ("BFU") in Converse County, Wyoming. A cyclic gas-injection stimulation test, associated with the Program, at William Valentine #1 is expected to be onstream in July 2019.

KES 7 Capital Inc. ("KES 7") acted as financial advisor to the Company.

In addition to the existing covenants, the Additional Facility is subject to customary work and facility fees and an initial draw of CAD $3.5 million. PDP values at year-end 2019 are required to be no less than CAD $50 million based on a Ryder Scott year-end reserve report.

About Cuda Oil and Gas Inc.

Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil and natural gas properties across North America. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns. Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long-term focus on large, light oil resource- based assets across North America including significant operational experience in the United States. The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.

For further information please contact:

Glenn Dawson
President and Chief Executive Officer
Cuda Oil and Gas Inc.
(403) 454-0862

Forward-Looking Information

This news release contains forward-looking information. All statements other than statements of historical fact included in this news release are forward-looking information that involve various risks and uncertainties and are based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. In particular, this news release includes forward-looking information relating to: (i) the use of proceeds of the refinancing; (ii) exploration and development activities and the timing of such activities; and (iii) the timing of operational developments relating to the Company's natural gas miscible flood program. These statements are based on certain assumptions of the Company relating to current conditions and expected future developments including assumptions relating to regulatory approvals and business prospects and opportunities. Risk factors that could prevent forward looking statements relating to Cuda and its operating activities from being realized include ongoing permitting requirements, the actual results of current exploration and development activities, operational risks, risks associated with drilling and completions, uncertainty of geological and technical data, access to capital, market conditions, the availability and nature of alternative sources of energy, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of oil and natural gas. Although Cuda has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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03.07.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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