Source Energy Services announced that it has made significant progress on the previously announced refinancing of its ABL and Term Loan and expects the refinancing to close on or before August 31, 2022. In conjunction with the refinancing and to facilitate an efficient closing, the Company has elected to utilize the 30-day grace period under the indenture governing its 10.5% senior secured first lien notes due March 15, 2025. The Company does not expect to utilize the full Grace Period and intends on making the August 15, 2022 Senior Notes interest payment on the closing of the refinancing.

While the Company has not disbursed the CAD 4.3 million August Interest Payment, the Company has ample liquidity available to fund the disbursement, and is current with all its suppliers, industry partners and contractors and intends to remain so. The utilization of any portion of the Grace Period will not affect any of the Company's operations, or commercial obligations. The election to not make the August Interest Payment on the scheduled date does not constitute an event of default under the indenture that governs the Senior Notes, or the credit agreement that governs the Credit Facility, until the expiry of the Grace Period.