Societe Generale Increases Abraxas Borrowing Base to $140 Million
Monday, July 09, 2012
Abraxas Petroleum said in filing that it entered into an amendment to its senior secured credit facility with Societe Generale, as administrative agent and issuing lender, and certain other lenders, to increase its borrowing base to $140 million. At June 29, 2012, the company had $15 million of availability under the credit facility.
The company said the increased borrowing base will remain in effect until the earliest of (a) the sale of its interest in the Eagle Ford joint venture;(b) the date on which the borrowing base is re-determined based upon the company’s internal engineering report as of June 30, 2012, and (c) October 31, 2012.
Under the terms of the amendment, until the earlier of the end of 2012 or until the interest in the Eagle Ford joint venture is sold, the company is required to limit its capital expenditures for drilling/completion expenditures to $10 million per quarter, subject to certain pull-back and carry-over provisions.
In addition, Abraxas said it added NYMEX-based fixed price hedges for 10,000 barrels of oil per month from October 2012 through December 2014 at an average price of $82.72 per barrel.