Carrizo Oil & Gas announced that its bank syndicate approved a $40 million borrowing base increase to its secured credit facility, raising it to $290 million. The existing bank syndicate also agreed to increase their credit commitments to the new borrowing base from $250 million to $259 million. Accordingly, several new banks have been invited to join the syndicate to provide commitments for the balance of the borrowing base increase. These banks are currently engaged in a review process that Carrizo anticipates will be completed in the next 20 to 30 days, after which the Company expects some of these banks to join the consortium.
Chief Financial Officer Paul F. Boling stated, "We are very pleased to announce the approval of the $290 million borrowing base and firm credit commitments of $259 million from our bank syndicate. In this time of tightened credit availability with many companies seeing a reduction in their credit facilities, we believe today's announcement represents a firm vote of confidence in Carrizo's underlying asset base and business strategy. While we have no current plans to make use of this increase in credit availability in our projected 2009 capital expenditure budget, we welcome the additional capital flexibility."
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