Pioneer Drilling Co (PDC.A) said it would increase its 2009 capital budget by $15 million, and that it amended its revolving credit agreement reducing the total commitments available under the facility.
The San Antonio, Texas-based company said it would increase its fiscal year 2009 capital expenditure budget to $80.2 million from $65.2 million.
The amendment to its credit agreement reduces the amount of commitments to $325 million from $400 million and shortens its maturity date to Aug. 31, 2010 from Feb. 28, 2013, Pioneer said in a statement.
The company, which provides contract land drilling services to oil and gas explorers and producers, said the total principal amount of loans outstanding under the credit agreement was $257.5 million as of Oct. 5.
Commitments under the facility will be reduced with certain mandatory prepayments, but they shall not be reduced to less than $200 million, Pioneer said.
Shares of the company closed at $7.21 Monday on the American Stock Exchange. The shares have more than doubled from their year-low in April.