Pacific Exploration & Production entered into forbearance agreements with its lenders in respect of the following agreements:

  • $1 billion revolving credit and guaranty agreement with a syndicate of lenders and Bank of America, as administrative agent
  • $250 million credit and guaranty agreement with HSBC Bank USA, as agent
  • $109 million credit and guaranty agreement with Bank of America, as lender
  • $75 million master credit agreement with Banco Latino Americano de Comercio Exterior, as lender

  • Under the terms of these agreements, the requisite lenders agreed to forbear from declaring the principal amounts of such credit facilities due and payable as a result of certain specified defaults until March 31, 2016.

    The company intends to use the extension period to continue to work with its creditors to formulate a comprehensive plan to address the current oil price environment and ensure the long-term viability of its business. The company remains, and intends to remain, current with its suppliers, trade partners and contractors. Normal operations continue in Colombia and the other jurisdictions within which the company operates.

    Canada-based Pacific Exploration is an explorer and producer of natural gas and crude oil.