Carrizo announced that its banking syndicate, led by Wells Fargo as administrative agent, has agreed to increase the commitments under its credit facility to $350 million from $284 million, representing an increase of $66 million. The borrowing base and commitment increases will become effective upon the execution of customary documentation by Carrizo and the lenders, which is currently expected to occur this week. Currently, the Company has an outstanding balance under its credit facility of approximately $202 million, representing about 58% of a $350 million conforming borrowing base.
Chief Financial Officer Paul F. Boling stated, "We are very pleased to announce that our banking syndicate has agreed to this substantial increase in our borrowing base to $350 million, which will provide available liquidity of approximately $148 million under the credit facility. In this environment of tightened credit availability, we believe today's announcement affirms the continued confidence in Carrizo's underlying asset base and core business strategy. Our 2010 capital expenditure plans are currently under development and will be presented to the Board of Directors for approval early next year."
Carrizo's next credit facility borrowing base redetermination is scheduled for the spring of 2010.
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