Lafayette, Louisiana-based PetroQuest Energy, Inc., an oil and gas exploration company, has amended and increased its $50 million credit facility to $100 million and has increased its bank group. Robert Brooksher, v.p., said that following a pre-determined borrowing-base exercise, PetroQuest decided to increase the bank group to enhance flexibility and meet exploration purposes as they arise. The amended facility, originally closed with Hibernia National Bank in September, now includes Royal Bank of Canada and Union Bank of California, added Brooksher. The banks were selected based on pricing, relationship and lending amount, he stated.
The $100 million reducing revolver is priced on a grid basis from LIBOR plus 1 3/8 % to 2 1/8 % based on the amount drawn, Brooksher said, adding that pricing has not changed since the last deal and amortization occurs at $4 million a quarter.
The borrowing base has increased to $36 million from $14.3 million, with periodic reviews predicated on the company's oil and gas reserves, he noted. The maturity on the secured credit remains the same at three years. PetroQuest focuses on growing its reserves through drilling development locations and exploration on the coast and the Gulf of Mexico.