Additional Equity and Development Covenants Clause Samples
Additional Equity and Development Covenants. Borrower agrees to use its reasonable best efforts to pursue the following transactions and other actions to improve the financial condition of Borrower:
(a) A sale for cash on or before July 1, 2013 of all of Borrower’s oil and gas interests and ▇▇▇▇▇ in the Palm Field located in T. 17 N., R. 58 W., Banner County, Nebraska, for a price that is mutually agreed by Borrower and Lender. All of the proceeds of any such sale shall be paid to Lender and shall reduce the amount outstanding under the Credit Agreement dated March 25, 2010 and, to the extent the proceeds exceed the amount outstanding under such Credit Agreement, the amounts due under this Credit Agreement or the Credit Agreement dated April 14, 2010, the allocation of which Lender shall determine in its sole discretion.
(b) An equity offering or other transaction to provide additional equity for the Borrower, through an investment banking firm deemed by Borrower in its reasonable discretion to have suitable qualifications for such transaction.
(c) One or more joint venture development agreements to develop the Borrower’s oil and gas assets with a financial or oil and gas industry entity with suitable financial strength and technical expertise for the successful implementation of such development agreements.
(d) Engineering study of Borrower’s producing oil and gas properties in the ▇▇▇▇▇ and State Line Fields (in Banner and ▇▇▇▇▇▇▇ Counties, Nebraska and Laramie County, Wyoming) to ascertain possible operations to enhance production from such properties.
(g) A new Section 2.7 of the Credit Agreement is hereby added as follows:
Additional Equity and Development Covenants. Borrower agrees to use its reasonable best efforts to pursue the following transactions and other actions to improve the financial condition of Borrower:
(a) A sale for cash on or before July 1, 2013 of all of Borrower’s oil and gas interests and ▇▇▇▇▇ in the Palm Field located in T. 17 N., R. 58 W., Banner County, Nebraska, for a price that is mutually agreed by Borrower and Lender. All of the proceeds of any such sale shall be paid to Lender and shall reduce the amount outstanding under the Loan and, to the extent the proceeds exceed the amount outstanding under the Loan, the amounts due under the Other Credit Agreements, the allocation of which Lender shall determine in its sole discretion.
(b) An equity offering or other transaction to provide additional equity for the Borrower, through an investment banking firm deemed by Borrower in its reasonable discretion to have suitable qualifications for such transaction.
(c) One or more joint venture development agreements to develop the Borrower’s oil and gas assets with a financial or oil and gas industry entity with suitable financial strength and technical expertise for the successful implementation of such development agreements.
(d) Engineering study of Borrower’s producing oil and gas properties in the ▇▇▇▇▇ and State Line Fields (in Banner and ▇▇▇▇▇▇▇ Counties, Nebraska and Laramie County, Wyoming) to ascertain possible operations to enhance production from such properties.