Independent energy company RAM Energy Resources Inc on Monday said its commercial lenders reaffirmed its existing borrowing base of $175 million, following a scheduled semi-annual redetermination.
The company said its lenders reaffirmed the borrowing base on the $250 million revolving facility based on the value of its proved reserves at June 30.
Having approximately 60 percent of our proved reserves categorized as proved developed producing coupled with the cash flow yield from our production mix, 59 percent of which is driven by the price of oil, continues to be seen as a strong plus by our lenders, Chief Executive Larry Lee said.
RAM Energy said the outstanding balance under the revolving facility on June 30 was $142 million, while the balance of the term loan portion was $113.4 million, with a maturity of November 2012.
In July, the company had said its creditors agreed to amend certain terms of its senior credit facility, providing greater flexibility in certain financial covenant in exchange for a higher interest rate.
Shares of RAM Energy closed at $1.14 Friday on Nasdaq. (Reporting by Adveith Nair in Bangalore; Editing by Anne Pallivathuckal)