PrimeEnergy and its subsidiaries entered into a third amended and restated credit agreement with Compass Bank as administrative agent, lender and issuing bank.

Citibank and Wells Fargo served as additional lenders.

Pursuant to the terms and conditions of the agreement, the company has a revolving line of credit and letter of credit facility of up to $300 million subject to a borrowing base that is determined semi-annually by the lenders based upon the company’s financial statements and the estimated value of the company’s oil and gas properties. The initial borrowing base is $75 million.

The credit agreement replaces the second amended and restated credit agreement made by the company, effective July 30, 2010 which was due to mature on July 30, 2017. The new maturity date is February 15, 2021.

Borrowings under the agreement will bear interest at a base rate plus an applicable margin ranging from 1.50% to 2.50% or at LIBOR plus an applicable margin ranging from 2.50% to 3.50%.