Savanna Energy expects to reduce debt in Q4 via real estate sales

By Angela McDaniels

Tacoma, Wash., Nov. 2 – Savanna Energy Services Corp.’s net debt declined by C$18.1 million during the third quarter, and the company plans to reduce this further during the fourth quarter, according to the company’s earnings release.

The company expects to close more than C$14 million of real estate sales before the end of the year.

Savanna's total long-term debt outstanding, excluding unamortized debt issue costs, was C$310.4 million on Sept. 30, compared with C$350.6 million at Dec. 31, 2014.

This total long-term debt amount includes C$14.9 million of unrealized foreign exchange on U.S. dollar-denominated debt and C$7.7 million of gross partnership debt, of which Savanna's proportionate share is about 50%

Savanna said it has C$117.3 million drawn on its C$250 million senior secured revolving credit facility as of Monday.

Savanna's net debt is C$284.8 million as of Monday, which is a C$60 million reduction from Dec. 31, 2014.

Savanna is a Calgary, Alta.-based drilling and well-servicing provider for the oil and gas industry.

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