NR, Cashflow and lower debt
Beau Canada estimates cash flow at $68-million
Beau Canada Exploration Ltd BAU
Shares issued 91,816,628 Sep 21 close $1.78
Fri 22 Sept 2000 News Release
Mr. Bruce Libin reports
Cash flow for the year 2000 is now estimated at approximately $68-million
(75 cents per share basic), assuming fourth quarter pricing for West Texas
Intermediate of $31.60 and NYMEX gas pricing of $5.15.
Hedging obligations will be reduced significantly by year-end. A
significant increase in cash flow is expected in the year 2001 because of
reduced hedging obligations. For example, the company will have
approximately $2-million more cash flow for the month of January, 2001,
compared with September, 2000, because of reduced hedging obligations.
Beau Canada has renegotiated its bank credit facilities. The facility which
was being termed out, has been converted to a combined demand and operating
facility that will have a maximum availability of $185-million, reducing to
$175-million by Dec. 20, 2000. This is reflective of the company's
requirements during this period and management does not foresee any
difficulties in meeting these obligations. It is anticipated that the
facility will be reviewed further and modified prior to the end of the
year.
Management is pleased with the debt reduction that has occurred in the
company. Bank debt ($203-million), term debt ($42-million) and working
capital deficiency ($18-million) totalled $263-million as of June 30, 2000.
This total is now approximately $195-million comprising $168-million in
bank debt, $18-million in term debt and $9-million in working capital
deficiency. Further reductions to this total are expected prior to the end
of the year.
Beau Canada has previously announced that it will be soliciting bids to be
received no later than Sept. 25, 2000, for a sale of the company. The board
expects to be reviewing such offers and providing further updates in this
regard in the near future.
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