Coelacanth Energy Inc. Announces $52 Million Revolving Bank Credit Facility and Fall Drilling Program

Core Viewpoint - Coelacanth Energy Inc. has secured a $52 million revolving bank credit facility and initiated a 4-well drilling program at Two Rivers East, aiming to enhance production and operational flexibility [2][6]. Group 1: Drilling Program - The drilling program at Two Rivers East includes drilling and completing 3 Lower Montney wells, completing 1 previously drilled Upper Montney well, and drilling a Bluesky disposal well, with a total estimated cost of approximately $36 million [3]. - The first well was spud on September 1, 2024, and the completion of the 4 pad wells is scheduled to start in late October 2024 [3]. - Previous drilling in 2023 at the same site yielded an average production rate of 1,338 boe/d per well, totaling 4,014 boe/d, with 54% being light oil [4]. Group 2: Strategic Benefits - The program is expected to accelerate the company's growth profile and add significant drilling inventory by proving the commerciality of the Upper Montney [5]. - It aims to reduce risks associated with processing and transportation commitments and minimize disruptions during the startup of the new facility [5]. - The construction of a new battery facility for gas compression, oil treating, and water handling is underway, with operations expected to commence in April 2025 [5]. Group 3: Financial Update - Coelacanth has secured two revolving bank credit facilities totaling $52 million, backed by reserves at Two Rivers West and a $45 million Letter of Credit from a third party for a 2-year term [6]. - The company had over $60 million in cash and no debt at the end of Q2 2024, projecting a net debt of approximately $40 million post-drilling program completion [8]. - The company plans to use proceeds from share purchase warrants for additional drilling at Two Rivers East scheduled for summer 2025 [9].