Houston-based Evolution Petroleum entered into a new three-year, senior secured reserve-based credit facility with MidFirst Bank. The $50 million facility replaces the company’s unsecured credit facility which was set to mature on April 29, 2016.

The initial borrowing base was set at $10 million, based on the company’s near term possible requirements.

“This traditional reserve-based credit facility expands our financial capabilities at a lower cost,” said Randy Keys, president and CEO of Evolution. “First, it gives us a solid backstop for our capital spending obligations with the NGL plant in our core Delhi Field asset. It also provides an additional financial resource as we evaluate new acquisition and growth opportunities. Evolution is committed to maintaining its strong financial position, which has proven to be a solid strategy and an asset during this current commodity price cycle.”

Evolution Petroleum develops petroleum reserves by applying conventional and specialized technology to known oil and gas resources onshore in the U.S.

Oklahoma City-based MidFirst Bank is a privately held bank with assets of nearly $12 billion.