Following the deepening operation a drilling rig was transported into Sinclair and the next Montney well is expected to spud when weather conditions allow in June 2009. Sabretooth Energy also intends to drill a third Montney well at Sinclair in 2009.
Red Creek
Sabretooth Energy and HFG completed drilling, concluding and testing its first horizontal Montney well at Red Creek in the first quarter of 2009. Recorders were run in March 20009 for pressure buildup and will be pulled in May 2009 for analysis.
Land Holdings
The non-conventional Montney undeveloped land holdings of Sabretooth Energy and HFG total about 40,480 net acres, of which the companies’ northeast British Columbia Montney land holdings totaling for about 80% of that number. Sabretooth’s total consolidated undeveloped land holdings at March 31, 2009 were approximately 145,250 net acres.
Share Buy Back
In January 2009, Sabretooth Energy bought 200,000 shares for $84,000 as part of the company’s normal course issuer bid. These shares were terminated in the first quarter of 2009. Sabretooth Energy has renewed its normal course issuer bid for 2009 and is able to buy back a total of 1,923,025 shares representing approximately 5% of the issued and outstanding shares of Sabretooth Energy.
Completed Restructuring of ABCP
Due to the Asset Backed Commercial Paper (ABCP) restructuring being concluded, Sabretooth Energy and the National Bank of Canada have entered into a new credit facility. The latest facility allows Sabretooth Energy to borrow up to $18.1 million (75% of the $24.2 million face value of Sabretooth Energy’s ABCP). The new facility has a three year life with Sabretooth Energy having the option to extend to a seven year life which reflects the expected maturity dates of the ABCP the Company holds.
Sabretooth Energy currently has a $40 million operating facility, a $5 million development facility and the $18.1 million ABCP facility.
