Black Ridge Oil & Gas Inc. (OTCQB: ANFC) has reported an increase to the Cadence Bank NA senior secured credit facility borrowing base to $35 million, a 75% increase from the previous borrowing base of $20 million.
The increase is largely based on the company's production and growth as of the June 30 quarterly filing and concurrent lender reserve analysis. The Cadence credit facility is the least expensive tranche of capital currently available to the company, carrying annual interest rates from 3.0% to 3.5% above LIBOR.
In connection with the increase in the senior secured credit facility, and in consideration of the company's projected cash needs, the company and Chambers Energy Management LP reduced the current availability under the Chambers subordinated credit facility by $5 million to $30 million with additional availability to be approved by the lender on an as needed basis for acquisitions. Total availability to the company under the two facilities is $65 million, with $44 million drawn as of June 30.