Rex Energy Corporation (Nasdaq:REXX) announced that its bank group has unanimously voted to increase the company's borrowing base under the company's senior secured credit facility from $265 million to $290 million.
The 9% increase in the borrowing base is the direct result of the company's continued success in its drilling program, increasing of estimated ultimate recoveries (EUR) and strong growth in its reserves and production. Under the terms of the credit facility, the bank group re-determines the borrowing base semi-annually utilizing the bank's estimates of reserves and future oil and gas prices.
"We are very pleased to announce the increase in our borrowing base to $290 million, the third increase to our borrowing base in just over a year," said Tom Stabley, Rex Energy's Chief Executive Officer. "The increased borrowing base further enhances our liquidity position and positions us to execute on our business plan at very attractive rates."
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; Bank of Montreal; Capital One, N.A.; Manufacturers and Traders Trust Company; SunTrust Bank; Wells Fargo Bank, N.A.; U.S. Bank National Associates; and Union Bank, N.A.
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