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Rex Energy Corporation has reported that its bank group has unanimously voted to increase the company's borrowing base under the company's senior secured credit facility by 15% from $325 million to $375 million.
In addition, the commitments by the bank group under the facility were raised from $215 million to $375 million. The increase in the borrowing base is the direct result of Rex Energy's continued success in its drilling program, increases to estimated ultimate recoveries (EUR) and strong growth in reserves and production. Under the terms of the credit agreement, the bank group re-determines the borrowing base semi-annually utilizing the bank's estimates of reserves and future oil and gas prices.
Tom Stabley, Rex Energy's Chief Executive Officer, commented: "The increase in our borrowing base to $375 million demonstrates the tremendous value of our assets. We appreciate the support of our bank group and believe that the increased borrowing base, coupled with our already ample liquidity, only furthers Rex Energy's ability to develop our assets."
The bank group is comprised of KeyBank N.A., which continues to lead and serve as Administrative Agent of the facility; Royal Bank of Canada; SunTrust Bank; BMO Harris Financing; Capital One, N.A.; The Huntington National Bank; M&T Bank; One West Bank, N.A.; Union Bank, N.A.; U.S. Bank, N.A.; and Wells Fargo Bank, N.A.