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Journey Energy Inc. Provides Corporate Update

CALGARY, April 27, 2020 /CNW/ - Journey Energy Inc. (JOY a?? TSX; JRNGF - OTCQX) ("Journey" or the "Company") announces an update to its operations and credit facility.A  The world oil price took a sharp turn downward in mid-March with the onset of the COVID 19 pandemic and systematic shutdowns of global economies.A WTI oil prices have recently declined below USD $20/bbl making several of Journey's properties uneconomic to operate at these levels.A Consequently, Journey has shut-in approximately 1,500 boe/d (73% oil and NGL) of its production effective the first week of April. Journey continues to evaluate all of its oil properties as candidates for shut-in.In addition, Journey's JV partner in the East Shale basin Duvernay resource play, has also shut in all production. A In this play in particular, the recent announcement by the Alberta government, regarding the extension of all mineral leases for an additional year, will provide substantial benefits to Journey allowing us to preserve the future opportunity value of this world class resource even though the wells are currently shut in.Journey has also implemented a number of other cost-cutting measures in both the field and in its head office.A  Most notably, fourteen employees (three in the field and eleven in the head office) and nine field consultants have been temporarily laid off.A A  In addition, all remaining employees' compensation has been reduced by approximately 10%, which is in addition to the previous compensation reductions achieved through the implementation of four-day work weeks in 2019.A A  All non-essential services were curtailed while preserving the safe operation of our wells and facilities.A  All remaining employees in the head office have undertaken a work-at-home program to help protect themselves and the community from the pandemic.A  Capital expenditures have been reduced to maintenance capital where deemed necessary as well as the completion of its power generation project.A  As a result, the Company anticipates spending approximately $2 million for the first half of 2020.A  The power project is still slated to begin operation in the third quarter of this year.A  Journey continues to work with purchasers on certain non-core asset dispositions.A  The dispositions are not expected to generate material proceeds for the Company, however, they will allow Journey to shed certain higher operating costs assets that are not material to its operations.
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