The Alaska Industrial Development and Export Authority unanimously approved a loan modification for BlueCrest Energy Inc. during a special meeting of the authority's board March 27.
The modification allows for a forbearance of principal payments for 12 months, effective as of the April 1, 2020, payment date through the March 1, 2021, payment date. Following the interest-only payment period, the amortization period and maturity date for the loan will be extended for one year.
The request was made by BlueCrest to allow the company flexibility in weathering the recent severe downturn in crude oil pricing, specifically Alaska crude, which benchmarks off of Brent, AIDEA said, adding that Brent has traded below $30 per barrel, representing a more than 55% decline in the oil price since the start of the year.
"This action will support the retention of the existing 10-person operation staff and lead to the employment of over 150 persons with the continued development of the field by BlueCrest later this year per the plan of development," the authority said.
The staff recommendation noted that BlueCrest has been "extremely diligent in its payment obligations to AIDEA."
The Investment Committee and the AIDEA Board reviewed the loan in July 2019 and the board approved a modification to the loan allowing for the release of its $6.1 million reserve account as a negotiated pre-payment of the loan, AIDEA said. The principal balance of the loan has been reduced from $22.9 million in July, to $13.2 million as of the last payment date March 1, 2020.
AIDEA's collateral for the loan - originated in December 2016 - is the BlueCrest Rig No. 1, a 50-person man camp and associated pipe, equipment and tools.
- STEVE SUTHERLIN
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