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Sept 29 (Reuters) - Canadian oil and gas producer Pacific
Exploration and Production Corp PRE.TO said its lenders agreed
to waive off a covenant that requires it to maintain above $1
billion in net worth, amid a slump in oil prices.
The waivers are effective for about $1.43 billion in debt
facility and will terminate on Dec. 28, the company said on
Tuesday.
The approval of the waivers were in the best interest of the
company due to a sharp decline in crude oil prices, as it
continues to reduce costs and sell non-core assets, CEO Ronald
Pantin said.
Global crude oil prices LCOc1 have slid 59 percent since
peaking in June last year, hurting several oil and gas producers
and services companies.
The company, previously known as Pacific Rubiales Energy
Corp, entered a two-year deal with the government of Peru last
month to operate and develop the country's biggest oil block.
The company had earlier announced the termination of
takeover offer from Mexican industrial conglomerate Alfa SAB de
CV ALFAA.MX and energy investment firm Harbour Energy Ltd in
July.