For the first half of 2013, Anderson estimates its capital program to approximate cash flows, dedicated exclusively to its Cardium horizontal drilling program. After spring break up, the Company will revisit its 2013 capital program.
The available lending limits under the bank facilities are reviewed twice a year and are based on the bank syndicate's interpretation of the Company's reserves and future commodity prices. The last review was conducted on December 15, 2012. The revolving term credit facility and the working capital credit facility have a maturity date of July 10, 2013, and all outstanding advances become repayable on July 10, 2013. There can be no assurance that the amount of the available bank lines will not be adjusted at the next scheduled review to be completed prior to May 15, 2013.
OFF BALANCE SHEET ARRANGEMENTS
The Company had no guarantees or off-balance sheet arrangements other than as described below under "Contractual Obligations."
CONTRACTUAL OBLIGATIONS
The Company enters into various contractual obligations in the course of conducting its operations. At December 31, 2012, these obligations include:
-- Loan agreements - The reserves-based revolving term credit facility and working capital credit facility have a maturity date of July 10, 2013. If not renewed, all outstanding advances thereunder become repayable on July 10, 2013.-- Firm service transportation commitments - The Company has entered into firm service transportation agreements for approximately 10 million cubic feet per day of gas sales for various terms expiring between 2013 and 2020.-- Cardium Horizontal Well Program (Oil) - At December 31, 2012 the Company had an obligation to drill one Cardium horizontal oil well. This commitment was fulfilled in the first quarter of 2013.-- Head office lease -The Company entered into an agreement to lease office space at a rate of approximately $597,000 per year ending June 30, 2014.-- Crude oil transportation contract - The term volume commitment relates to the Garrington oil facility through which the Company ships significant volumes of oil. The Company expects to exceed the term volume commitment during 2013.As at December 31, 2012 the Company had the following minimum contractualobligations including bank loans: Payments due by yearContractual obligations (in thousands of dollars) 2013 2014 2015 2016 2017 ThereafterAccounts payable(3) $28,107 $ - $ - $ - $ - $ -Bank loans(1) 48,094 - - - - -Convertible debentures(2)(3) 5,523 7,085 7,085 55,210 47,667 -Non-cancellable operating leases(4) 915 447 - - - -Crude oil transportation contract(6) 1,007 - - - - -Other capital commitments(5) 400 - - - - -Firm service(6) 904 781 674 100 95 205 --------------------------------------------------Total $84,950 $ 8,313 $ 7,759 $55,310 $47,762 $ 205----------------------------------------------------------------------------(1) Assumes the credit facilities are not renewed on July 10, 2013.(2) Includes the associated principal repayments.(3) Accounts payable and accruals includes $1.6 million of interest relating to convertible debentures. The total cash interest payable in 2013 on the convertible debentures is $7.1 million.(4) Includes the head office and field office leases, and computer software leases.(5) Includes $0.15 million for demobilization and rig move costs on a drilling rig that was standing at December 31, 2012. This well was subsequently spud on January 1, 2013 absolving this commitment(6) These transportation charges are netted from revenue received from purchasers. The independent reserves report includes the cost of product transportation in the determination of reserves values.
