Oil markets have fallen significantly since the latest round of borrowing base redeterminations in September and October. The next scheduled round of redeterminations is set for March. Expectations are that there will be substantial downward pressure on producers’ borrowing bases. Some reductions could trigger mandatory principal amortization which would have serious consequences for highly leveraged oil and gas companies. Even borrowers who are not highly leveraged will be impacted by lower borrowing bases. Producers and their bankers should begin now looking at options to address the upcoming redeterminations. This alert outlines 12 options that may help producers stretch their borrowing base and/or help conserve existing credit lines.

To read the full alert, click on the PDF linked below.

Dozen-Ways-to-Stretch-Borrowing-Base.pdf

If you have any questions about this alert, please contact one of the lawyers listed below.