Chaparral Energy, Inc. of Oklahoma City announced this week its credit has been expanded from $400 million to $750 million.
At the same time, bankers also reduced borrowing costs to the energy company.
The borrowing base went from $265 to $325 million. Chaparral also said its new administrative agent is Royal Bank of Canada.
The company has no borrowings currently under the credit facility and its next semi-annual borrowing base redetermination will be in the spring of 2019.
“We are very pleased with the outcome of our fall borrowing base redetermination,” said Chaparral Chief Executive Officer Earl Reynolds. “The continued support we have received from our banks and their recognition of our premier STACK assets provides us with the financial flexibility to adjust to changing market conditions. With our deep inventory of high-return STACK drilling prospects, strong balance sheet and increased borrowing base, we will be able to continue to deliver outstanding results in one of America’s most active and economic regions.”