AIMCo increases Razor Energy loan facility to $45 mln

Razor Energy Corp (TSX-V: RZE), a Calgary junior oil and gas company, has secured an increase of $15 million in its non-revolving term loan facility from Alberta Investment Management Corp (AIMCo). The increase brings the facility to $45 million in total. Razor, which is focused on acquiring and enhancing producing properties located in Alberta, said it will use the proceeds for its development program and other priorities. AIMCo, which entered into a financing partnership with Razor in 2017, was issued additional common shares as a result of the deal.


Razor Energy Corp. Announces Consolidation Acquisition in the Kaybob Area of West Central Alberta and Increased Term Loan Facility

CALGARY, ALBERTA–(Marketwired – Jan. 15, 2018) – Razor Energy Corp. (“Razor” or the “Company”) (TSX VENTURE:RZE) ( is pleased to announce that it has completed the acquisition of certain non-operated working interest positions to consolidate its existing Kaybob Triassic Units 1 and 2 from an arm’s length company (the “Kaybob Assets”) for cash consideration of $4.9 million, subject to customary adjustments (the “Acquisition”). The Kaybob Assets are characterized by low decline, light oil focused production with abundant infrastructure that directly complement Razor’s existing asset portfolio. The Acquisition has been funded with Razor’s existing cash reserves.


The Acquisition increases Razor’s operated working interest position in:

Kaybob Triassic Unit #1 from 52.95% to 93.48%; and
Kaybob Triassic Unit #2 from 73.25% to 100.00%.

On a pro forma basis including this acquisition, using field production estimates, the Company expects January 2018 production to exceed 4,900 boe/d, of which 85% is light oil and natural gas liquids.

The Acquisition consolidates and enhances Razor’s existing asset base with reactivation and re-entry opportunities, in addition to future drilling upside with proven deliverability of light oil from the Montney formation.

The Acquisition has an effective date of November 1, 2017.


Total purchase price(1) $4.9 million
Current production (November 2017) 260 boe/d
Annual decline rate 15%
Run rate cash flow(2) $1.9 million


Current production (November 2017) $18,850 per boe/d
Run rate cash flow(2) 2.54x

(1) Subject to normal adjustments for a transaction of this nature and adjustments related to the exercise of ROFRs.
(2) Run rate cash flow does not have any standard meaning prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other entities. Refer to “Non-IFRS measures”. Run rate cash flow is based on annualized current production of 260 boe/d multiplied by the operating netback for the Kaybob Assets of $20.62/boe.
Razor continually strives to deliver on its commitment to shareholders to acquire, consolidate or otherwise add, organically or inorganically, complementary assets to further strengthen its value proposition.

Haywood Securities Inc., Canaccord Genuity Corp. and Eight Capital acted as strategic advisors to Razor in respect of the Acquisition.


Razor has secured an increase of $15.0 million in its existing non-revolving term loan facility from Alberta Investment Management Corporation (“AIMCo”), on behalf of certain of AIMCo’s clients, for an amended principal amount of $45.0 million (the “Amended Term Loan Facility”). The terms of the Amended Term Loan Facility are materially unchanged from the term loan facility established in January, 2017. Principal continues to be due in January, 2021 with an interest rate of 10%, payable semi-annually. As consideration for the Amended Term Loan Facility, 255,600 common shares of Razor have been issued to AIMCo.

The proceeds of the increased Term Loan Facility will be used by Razor to fund its development program and for general corporate purposes.

After the issuance of the Razor shares to AIMCo and the shares purchased to date under the previously announced normal course issuer bid, Razor currently has 15,767,534 shares issued and outstanding.


Razor is a publicly-traded junior oil and gas development and production company headquartered in Calgary, Alberta, concentrated on acquiring, and subsequently enhancing, producing oil and gas properties primarily in Alberta. The Company is led by experienced management and a strong, committed Board of Directors, with a long term vision of growth focused on efficiency and cost control in all areas of the business.

Razor started operations in the first quarter of 2017, through an acquisition of producing assets in the Swan Hills area. In the second quarter of 2017, Razor added to its asset base with the acquisition of complementary assets in the Kaybob area. These predominantly light oil assets provide a foundation for strong shareholder return through abundant low risk operations. Razor plans to concurrently grow Swan Hills and Kaybob, and execute on similar acquisitions, using its experience to extract upside value.

Razor is a pivotal leading-edge enterprise, balancing creativity and discipline, focused on growing an enduring energy company.

Razor currently trades on TSX Venture Exchange under the ticker “RZE”.


Doug Bailey
President and Chief Executive Officer
Razor Energy Corp.
(403) 262-0242

Kevin Braun
Chief Financial Officer
Razor Energy Corp.
(403) 262-0242

Photo courtesy of Reuters/Todd Korol