Chaparral Energy, Inc. announced the company’s bank group has completed its regularly scheduled fall borrowing base redetermination and reaffirmed the borrowing base at $325 million.
As of June 30, 2019, the Oklahoma City-based independent oil and natural gas exploration and production company had approximately $33 million in cash and cash equivalents and $85 million drawn on the borrowing base.
“Given the current market conditions, we are very pleased with the outcome of our fall borrowing base redetermination” said Earl Reynolds, Chaparral’s Chief Executive Officer. “The continued support we have received from our banks and their recognition of our premier STACK and Merge assets provides us with the financial flexibility to adjust to changing market conditions. Due to our strong balance sheet and superior execution we will be able to continue to deliver outstanding results while focusing on achieving cash flow neutrality.”
Chaparral is a pure-play operator focused in Oklahoma’s highly economic STACK/Merge Play, where it has nearly 130,000 net acres primarily in Kingfisher, Canadian and Garfield counties. The company has approximately 221,000 net surface acres in the Mid-Continent region.
Chaparral’s next regularly scheduled semi-annual borrowing base redetermination will be in the spring of 2020.