Quicksilver Resources announced that its bank group has affirmed the borrowing base related to the company's senior secured revolving credit facility at $1 billion, based upon oil and gas reserves as of August 31, 2009. JPMorgan Chase Bank, N.A. led the group of 24 lenders and there were no other changes in the terms and conditions of the credit facility.
With roughly $500 million drawn under the credit facility, we are confident that the bank group's affirmation of a $1 billion borrowing base provides sufficient financial flexibility for Quicksilver to continue to execute the development of its high-growth resource base," said Philip W. Cook, Quicksilver senior vice president and chief financial officer. "The company remains committed to operating within its internally generated source of funds and expects to achieve double-digit production growth in 2010 while further evaluating the opportunities for our Horn River project."
The lenders have extended $1 billion of commitments and the company has the option to increase the credit facility up to $1.45 billion, subject to lender consents and additional commitments. The company can extend the maturity of the credit facility, which matures February 2012, up to two additional years with consenting lenders.
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