World News: 21:16 GMT Friday 14th September 2018. [Petrocapita Income Trust via Globe Newswire via SPi World News]
CALGARY, Alberta, Sept. 14, 2018 (GLOBE NEWSWIRE) -- Petrocapita Income Trust () (“”) announces it is suspending the interest payments on its 8% convertible debentures effective immediately. Management will revisit this decision in the event it feels there are sustainable improvements in Western Canadian Select (WCS) pricing.
Senior management made this decision reluctantly but as a necessary step given the continued, deeply depressed WCS market created by a lack of pipeline take-away capacity in the Western Canadian Sedimentary Basin and a severe contraction in access to capital for junior E & P companies caused by an uncertain regulatory environment.
Petrocapita continues to work on plans to address its debt and its environmental and regulatory obligations in this difficult economic climate. These initiatives include but are not limited to, conversion of debt to equity, working with joint venture partners on asset management, and participating in regulatory lead environmental initiatives.
As part of an ongoing strategic review, Petrocapita is considering alternatives for its midstream business/assets which may include the creation of a sole purpose, operating entity for fund raising. Petrocapita is also contemplating a name change to Ripple Income Trust as part of this strategic review.
This press release may be viewed on the Canadian Securities Exchange (CSE) and the System for Document Analysis and Retrieval (“”) and may be accessed at .
For further information, please contact:
Richard Mellis, PresidentTelephone: (587) 393-3459
Gregory Marr, CFO, Investor Relations Telephone: (587) 393-3461
Globe Newswire: 21:16 GMT Friday 14th September 2018
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