China Construction Bank provides CAD 431 million loan to Long Run Exploration Ltd. to support the servicing of debt obligations

Project narrative

On January 31, 2017, China Construction Bank (CCB) and Long Run Exploration Ltd. closed a CAD 431 million credit facility, disbursed for the purpose of Long Run Exploration Ltd. servicing its existing debt obligations. The terms of the credit facility are unknown. A portion of the credit facility was used for the repayment of an existing CAD 391 million obligation held by Long Run Exploration Ltd., which was led by The Bank of Nova Scotia. Long Run Exploration Ltd. is a private Calgary-based intermediate oil and natural gas company focused on light oil development and exploration in Western Canada. In 2016, Long Run Exploration had been acquired by Sinoenergy Investments, a company owned by a group of Chinese investors, for a high premium of 215% on existing equities and 257% on unsecured debentures. Long Run Exploration Ltd., which had previously been a publicly traded company listed on the Canadian Securities Exchange (CSE), went private at some point after being acquired, allowing it to remove financial information from its website and cease publishing reports to SEDAR, the filing system used by the Canadian Securities Administrators (CSA).