Wells Fargo Leads Penn Virginia Borrowing Base Increase
Penn Virginia announced that its bank group approved an increase in the borrowing base under PVA’s senior secured credit facility from approximately $438 million to $500 million.
The bank group is comprised of 12 banks, led by Wells Fargo Bank, which serves as administrative agent.
PVA’s financial liquidity, inclusive of the expanded borrowing capacity and its $124 million cash balance as of September 30, 2014, is in excess of $620 million. The 14 percent increase in the borrowing base is the result of PVA’s ongoing and successful Eagle Ford Shale drilling program and the increased value of proved reserves.
Under the terms of the credit facility, which matures in September 2017, the bank group re-determines the borrowing base semi-annually utilizing the banks’ estimates of reserves and future oil and gas prices.
H. Baird Whitehead, president and chief executive officer stated, “We are very pleased to announce the increase in our borrowing base to $500 million, which was above our expectations. The increased borrowing base improves our liquidity position and enhances our ability to capitalize on the opportunities in the Eagle Ford Shale.”
Penn Virginia is an independent oil and gas company engaged in the exploration, development and production of oil, NGLs and natural gas in various domestic onshore regions of the United States, with a primary focus in south and east Texas.