Approach Resources Inc. (NASDAQ: AREX) has completed the scheduled semiannual borrowing base redetermination of its revolving credit facility, and as a result, the bank group has set the lender commitment amount and borrowing base at $450 million.
Under the terms of the credit agreement, the bank group redetermines the borrowing base semiannually, using the banks’ estimates of reserves and future oil and gas prices. The next borrowing base redetermination is scheduled to occur by April 1, 2016. As of Sept. 24, Approach had $276 million outstanding under its revolving credit facility, resulting in liquidity of $177 million.
Approach Resources is an independent energy company focused on the exploration, development, production, and acquisition of unconventional oil and gas reserves in the Midland Basin of the greater Permian Basin in West Texas.