Gasco Energy Boosts Borrowing Base to $37 Million for Oil Exploration and Drilling
Oil and gas exploration and production company Gasco Energy Inc. said Thursday its bank group agreed to increase the company’s borrowing capacity to $37 million under its $250 million revolving line of credit.
The borrowing base previously was $25 million.
Under the agreement with the JP Morgan-led banking group, the borrowing base will be evaluated semiannually.
The company said the credit facility is needed to refinance debt, working capital purposes and to explore, develop or buy oil and gas properties.
“Cash on hand, cash flow generated from our producing wells and our ability to borrow under this credit facility are expected to allow Gasco to successfully fund its previously announced $40 million 2007 drilling program,” King Grant, the company’s chief financial officer, said in a statement.
Shares of Gasco rose 4 cents to $1.91 in morning trading on the American Stock Exchange.
Source: AP via Yahoo News
