Armada Oil has terminated the terms of its existing credit facility amid the recent decline in oil price.
The firm said it was working with its current lender to secure an extension of the terms of its existing credit facility and expects a resolution before the ed of the year.
The loss of its financial facility has also halted work on the Bear Creek #1 project.
Randy Griffin, chief executive, said: “Although the drop in oil prices resulted in the loss of an outstanding financing opportunity, there is a silver lining.
“We believe that producing property acquisition opportunities will surface in the first quarter of 2015 at pricing that has not been seen in a number of years and that the relationship we now have with the investment fund we were working with on the finance facility will be invaluable when those opportunities present themselves.”
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