Approach Resources Inc. has completed the scheduled semiannual borrowing base redetermination of its revolving credit facility, the Fort Worth firm announced on Friday Sept. 25.
As a result, its lender commitment and borrowing base has been set at $450 million. Under terms of the credit agreement, its bank group redetermines the borrowing base semiannually using the banks’ estimates of reserves and future oil and gas prices.
The next borrowing base redetermination is expected to occur by April 1, 2016. On Sept. 24, 2015, Approach had $276 million outstanding under its revolving credit facility, resulting in liquidity of $177 million.
“Despite significant volatility in commodity prices, we’ve been able to maintain our credit facility commitments unchanged for the past 17 months,” said Sergei Krylov, executive vice president and chief financial officer, commenting in a news release.
“This most recent reaffirmation of lender commitments at $450 million is a testament to the continued productivity improvements and cost reduction initiatives that have been the focus of the entire Approach team,” Krylov said.
Approach Resources Inc. is an independent energy company focused developing, producing and acquiring unconventional oil and gas reserves in the Midland Basin of the greater Permian Basin in West Texas. More information is available at www.approachresources.com.