PetroQuest Energy, Inc. announced that on October 2, 2008, it closed a $300 million bank credit facility with JPMorgan Chase Bank, N.A. as administrative agent, Calyon New York Branch as syndication agent, Bank of America, N.A. as documentation agent, Wells Fargo Bank, N.A. and Whitney National Bank as participants. The credit facility provides an initial borrowing base of $150 million, which represents a $55 million increase in borrowing base capacity from the previous facility. The credit facility matures on February 10, 2012; however, the maturity date will be extended to October 2, 2013 if the Company repays or refinances its $150 million senior notes prior to February 10, 2012.
The $150 million initial borrowing base is based upon the bank group's review of the Company's reserve base as of July 1, 2008. Chairman, Chief Executive Officer and President Charles T. Goodson commented, "We are very pleased to get this significantly expanded facility in place. To complete this transaction in such a turbulent credit environment speaks directly to our success in diversifying and growing our reserve base this year."
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