HOUSTON, April 13, 2016 /PRNewswire/ -- Evolution Petroleum Corporation (NYSE MKT: EPM) today announced that it has entered into a new three-year, senior secured reserve-based credit facility ("Facility") with MidFirst Bank of Oklahoma City, Oklahoma. The $50 million Facility replaces the Company's unsecured credit facility which was set to mature on April 29, 2016. The initial borrowing base was set at $10 million, based on the Company's near term possible requirements, excluding any potential acquisitions, and as of today the Company has no outstanding borrowings under the new facility. The Facility has standard financial covenants, and will have semi-annual borrowing base redeterminations. Proceeds from the Facility may be used for the acquisition and development of oil and gas properties and for letters of credit and other general corporate purposes.
Randy Keys, President and CEO of Evolution, said: "This traditional reserve-based credit facility expands our financial capabilities at a lower cost. First, it gives us a solid backstop for our capital spending obligations with the NGL plant in our core Delhi Field asset. It also provides an additional financial resource as we evaluate new acquisition and growth opportunities. Evolution is committed to maintaining its strong financial position, which has proven to be a solid strategy and an asset during this current commodity price cycle.
"This Facility also firmly establishes MidFirst Bank as a key financial partner for Evolution. Within 30 days of our initial discussions with MidFirst, they delivered a term sheet and we closed with virtually the same terms approximately 30 days after that. MidFirst proved responsive to our needs and acted quickly, which are important attributes in a financial partner."
James Boggs, Senior Vice President with MidFirst, said: "Our conservative lending philosophy, combined with a broadly diversified and high-quality loan portfolio, has put us in a position to extend new credit to quality companies in the energy sector. We have a long and successful history with the industry and see an opportunity to build long-term relationships."
About MidFirst Bank
MidFirst Bank is one of the nation's largest privately held banks, with assets of nearly $12 billion. MidFirst Bank holds IDC's highest possible Bank Safety Rating, placing it in the top five percent of all U.S. financial institutions. MidFirst Bank presently has more than 75 banking centers in three states, including Oklahoma, Arizona and Colorado. Additionally, it has commercial lending offices in Atlanta, Dallas, Houston, New York and California. Additional information about MidFirst can be found on their website at www.MidFirst.com.
About Evolution Petroleum
Evolution Petroleum Corporation develops petroleum reserves and shareholder value by applying conventional and specialized technology to known oil and gas resources, onshore in the United States. Our principal asset is our interest in an oil producing CO2-EOR project in Louisiana's Delhi Field. Additional information, including the Company's annual report on Form 10-K and its quarterly reports on Form 10-Q, is available on its website at www.EvolutionPetroleum.com
Randy Keys, President & CEO
SOURCE Evolution Petroleum Corporation