Petrocapita Proceeding With Up to $55 Million Debt Facility

Petrocapita Proceeding With Up to $55 Million Debt Facility

?NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

CALGARY, Alberta, Nov. 06, 2017 (GLOBE NEWSWIRE) -- Petrocapita Income Trust (CSE:PCE.UN) (the ?Trust? or "Petrocapita") announces that it has entered into an engagement agreement (the "Engagement Agreement?) with Can-World Finance Services ("Can-World") whereby Can-World has agreed to assist, on a best efforts basis, in the placement of a debt expansion facility for Petrocapita in an amount of up to $55,000,000 (the "Facility").  The Engagement Agreement is for a term of 2 years.  

The Facility would constitute senior debt and is anticipated to be structured as (i) up to $45,000,000 in a term loan facility with a term of up to 7 years secured by Petrocapita's oil and gas and related infrastructure assets, and (ii) up to $10,000,000 in an operating line of credit secured by Petrocapita's accounts receivable and work in progress. 

If obtained, Petrocapita intends to use the funds drawn under the Facility principally to repay its high yield debentures and exercise its associated royalty buyout option. The balance of the funds will be used to develop Petrocapita's existing oil and gas properties and related infrastructure and to acquire and develop new oil and gas properties and related infrastructure assets, or interests therein, principally in the Lloydminster and surrounding area of Alberta and Saskatchewan.  It is anticipated that a majority of the assets to be developed or acquired will be in respect of heavy oil properties and related or ancillary infrastructure assets, which are expected to include produced water disposal facilities, produced water flow-lines, fuel gas flow-lines, fluid transportation equipment and facilities, drilling and well servicing equipment, and centralized oil processing facilities.

About Petrocapita

Petrocapita Income Trust is a Specified Investment Flow Through trust developing and acquiring heavy oil production and infrastructure assets in the Lloydminster area of east central Alberta and west central Saskatchewan through its wholly owned subsidiaries, Petrocapita Oil and Gas LP and Petrocapita Processing LP.  Petrocapita owns, operates and has interests in oil wells, gas wells, produced water disposal facilities, produced water disposal/injection wells, custom oil processing facilities, natural gas compressor stations, oilwell service rigs, fluid haul tractors and trailers, motor graders, oil field service trucks and wellsite processing and ancillary equipment. It is seeking accretive opportunities to acquire both oil production and complimentary midstream assets during a cyclical low in the oil and gas markets.

For further information, please contact:

Alex Lemmens, President
Telephone: (587) 393-3460

OR

Steve Elliott, Investor Relations
Telephone: (587) 700-8408

Forward-Looking Information and Statements

This news release contains certain forward-looking information as defined under applicable securities legislation. All statements, other than statements of historical fact, with respect to activities, circumstances, events, outcomes and other matters that Petrocapita forecasts, plans, projects, estimates, expects, believes, assumes or anticipates (and other similar expressions) will, should or may occur in the future, are considered forward-looking information. In particular, forward-looking information contained in this news release includes, but is not limited to, information and statements concerning the prospective Facility; the anticipated structure and terms of the Facility; and the anticipated use for the funds drawn under the Facility.

The forward-looking information provided in this news release is based on management's current beliefs, expectations and assumptions, based on currently available information as to future events (including the outcome and timing thereof). Petrocapita cautions that assumptions have been made regarding the prospective Facility, including the ability of Petrocapita to secure the Facility and the timing thereof, as well as the anticipated use of funds drawn under the Facility, all of which are subject to various risks and uncertainties. These risks include, but are not limited to, the inability of Petrocapita to timely obtain the Facility on acceptable terms or at all, which may be due to any number of factors including those outside the control of Petrocapita; and the inability of Petrocapita to use funds drawn under the Facility in whole or in part as is currently anticipated, which may be due to any number of factors including the inability to source and complete acquisitions, and unanticipated operational and development issues which necessitate funds drawn under the Facility be used for purposes other than those originally anticipated.

Forward-looking information is subject to a number of risks and uncertainties, including those mentioned above, that could cause actual results to differ materially from the expectations set forth in the forward- looking information. Forward-looking information is not a guarantee of future performance or an assurance that our current estimates, assumptions and projections are valid. All forward-looking information speaks only as of the date of this news release, and Petrocapita assumes no obligation to, and expressly disclaims any obligation to, update or revise any forward-looking information, except as required by law. You should not place undue reliance on forward-looking information. You are encouraged to closely consider the additional disclosures and risk factors contained in Petrocapita's periodic filings on SEDAR (www.sedar.com) that discuss in further detail various factors that could cause future results to be different than contemplated in this news release.