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Laricina continued to focus on cost control and its restructuring process during the second quarter of 2015. Production during the second quarter averaged 695 gross barrels of bitumen per day reflecting operations from the Saleski pilot. As previously announced and part of our focus on cost control, the Germain commercial demonstration project (CDP) was suspended at the end of the first quarter.
Pursuant to the initial order granted for creditor protection under the Companies’ Creditors Arrangement Act (Canada) (the CCAA) from the Court of Queen’s Bench of Alberta (the Court) effective March 26, 2015, a further order staying creditor proceedings until and including December 11, 2015 was granted on August 5, 2015.
During the quarter we negotiated the terms of a settlement transaction (the Settlement Transaction) with CPPIB Credit Investments Inc. (CPP Credit), the sole holder of our outstanding senior secured notes (the Notes), and on July 20, 2015, Laricina and CPP Credit entered into a formal binding settlement agreement (the Settlement Agreement), details of which have been conveyed in Laricina’s information releases available on its web site. On August 5, 2015 Laricina received Court approval of the Settlement Transaction set forth in the Settlement Agreement and related documents.
The marketing process (the Marketing Process) previously approved by the Court is ongoing and in conjunction with that Laricina intends to offer to existing shareholders the pre-emptive opportunity to subscribe for common shares of the Company on a pro rata basis at $0.12 per common share (the Offering). Dependent upon the outcome of the Marketing Process, Laricina will determine the size of the Offering such that if all shareholders subscribed for equity, the proceeds would be sufficient to repay substantially all of Laricina’s remaining indebtedness to CPP Credit.
Second Quarter 2015 Highlights