Caza Oil & Gas Inc. reported year-end 2015 financial and production results on March 31. Annual revenues for 2015 decreased by 56% to $10.1 million; in 2014, they were $22.9 million.
The company’s average production volumes for 2015 decreased 24% to 706 barrels of oil equivalent per day (boe/d); in 2014, they were 923 boe/d.
During 2015, Caza raised about US$45.5 million in gross debt restructuring proceeds by placing about 9.4 million common shares priced at the equivalent of about 0.32 pence. The shares were sold to Talara Opportunities V LP.
At this sale’s closing, US$43.9 million went to YA Global Master SPV Ltd. and GSC SICAV Plc (the Yorkville parties) and to Apollo Investment Corp. Debts that Caza owed them and subsidiaries were extinguished.
Caza said that because it relied on the financial hardship exemption, it is currently subject to a TSX Venture Exchange delisting review.
In connection with this closing, certain members of Caza's management team and the board exchanged their Caza shares for about 26.5 million common shares and purchased about 176.8 common shares from Talara.
The Yorkville Parties agreed to transfer ownership of about 29.8 million shares back to Caza in connection with closing.
The board was also reconstituted at closing to consist of David Zusman, David Young, Andrew Heyman and Sharon O'Shea, being Talara nominees, J. Russell Porter and Cornelius Dupré II.
Caza also entered a credit agreement for a five-year senior secured reserve-based revolving credit facility for a maximum of US$100 million governed by an initial borrowing base of US$15 million.
JP Morgan Chase Bank NA was lender and administrative agent and JP Morgan Securities LLC was lead arranger and book-runner.
Caza’s management has focused efforts on building a core asset base in the prolific Bone Spring/Wolfcamp play. On Dec. 31, 2015, there were 226 drilling locations and 33 gross (10.2 net) producing wells on its leasehold position in the play.
Caza Oil & Gas Inc. is based in Midland, Texas.
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