Kelt Exploration Announces Amendments to Its Credit Facility

CALGARY, AB--(Marketwired - May 31, 2016) - Kelt Exploration Ltd. ("Kelt" or the "Company") (TSX: KEL) has completed its semi-annual borrowing base review with its syndicated group of lenders. The Company has agreed to certain amendments to its existing credit facility and the borrowing base has been re-determined at $185.0 million.

All of the lenders, other than a single lender representing $10.0 million of the total commitment amount of $185.0 million (the "Term Lender"), have agreed to extend the revolving period to April 29, 2017. The Company is obligated to pay out the Term Lender in full on April 28, 2017. The revolving period may be extended for an additional 364 days at the discretion of the lenders, with a term-out to April 27, 2018 if not extended. Under the credit facility, covenants are limited to standard business operating covenants and the Company is not subject to any financial covenants.

There was no change to the pricing grid under which borrowing rates and standby fees fluctuate depending on the Company's current debt to cash flow ratio. As a result of the reduction in the borrowing base, Kelt expects to realize annual savings of approximately $900,000 by eliminating standby fees on unused credit amounts at the current rate.

Kelt currently has $118.4 million drawn on its credit facility. As previously guided, the Company expects bank debt, net of working capital to be approximately $137.0 million at December 31, 2016 or 74% of its current borrowing base.

About Kelt

Kelt is a Calgary, Alberta, Canada-based oil and gas company focused on exploration, development and production of crude oil and natural gas resources, primarily in west central Alberta and northeastern British Columbia.

Cautionary Statement on Forward-Looking Statements and Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, this press release contains forward-looking statements pertaining to: the expected amount of annual savings on standby fees for unused credit amounts; any future extension of the revolving period; and the forecasted amount of bank debt, net of working capital at December 31, 2016.