Common use of Borrowing Base Standards Clause in Contracts

Borrowing Base Standards. The Borrowing Base shall represent the approval in their sole discretion of the Required Lenders or all Lenders, as applicable, of Administrative Agent’s determination of the loan amount that may be supported by the Required Lenders’ or all Lenders’, as applicable, evaluation of the Proved Oil and Gas Properties of Borrower and its Subsidiaries. The determination of the Borrowing Base will be made in accordance with then-current practices, economic and pricing parameters, methodology, assumptions, and customary procedures and standards established by each Lender from time to time for its petroleum industry customers including without limitation (i) an analysis of such reserve and production data with respect to all of the Proved Oil and Gas Properties of Borrower and its Subsidiaries, including the Mortgaged Properties, as is provided to the Lenders in accordance herewith, (ii) an analysis of the assets, liabilities, cash flow, business, properties, prospects, management and ownership of Borrower and its Subsidiaries, (iii) Borrower’s and its Subsidiaries’ Hedging Transactions and the status (or lack thereof) of any provider of Hedging Transactions as an “Approved Commodity Swap Counterparty,” and (iv) such other credit factors consistently applied as each Lender customarily considers in evaluating similar oil and gas credit facilities. Borrower and the Lenders acknowledge that due to the uncertainties of the oil and gas extraction process, the Oil and Gas Properties of Borrower and its Subsidiaries are not subject to evaluation with a high degree of accuracy and are subject to potential rapid deterioration in value, the determination of the loan amount will be less than the total present value of the Proved Oil and Gas Properties of Borrower and its Subsidiaries, which Borrower acknowledges to be essential for the adequate protection of the Lenders. Without limiting the foregoing, the Lenders may exclude from the Borrowing Base any oil and gas reserves or portion of production therefrom or any income from any other property, at any time, because title information is not satisfactory, such oil and gas reserves are not Mortgaged Properties or such oil and gas reserves are not in “pay” status. For the period from and including the Closing Date to but excluding the First Redetermination Date, the amount of the Borrowing Base shall be $0. The amount of the Borrowing Base shall remain at $0 until Borrower makes an initial request that the Borrowing Base be redetermined in accordance with the procedures set forth in this Section 2.9.

Borrowing Base Standards. The Borrowing Base shall represent the approval in their sole discretion of the Required Lenders or all Lenders, as applicable, of Administrative Agent’s determination of the loan amount that may be supported by the Required Lenders’ or all Lenders’, as applicable, evaluation of the Proved Oil and Gas Properties of Borrower and its Subsidiaries. The determination of the Borrowing Base will be made in accordance with then-current practices, economic and pricing parameters, methodology, assumptions, and customary procedures and standards established by each Lender from time to time for its petroleum industry customers including without limitation (i) an analysis of such reserve and production data with respect to all of the Proved Oil and Gas Properties of Borrower and its Subsidiaries, including the Mortgaged Properties, as is provided to the Lenders in accordance herewith, (ii) an analysis of the assets, liabilities, cash flow, business, properties, prospects, management and ownership of Borrower and its Subsidiaries, (iii) Borrower’s and its Subsidiaries’ Hedging Transactions and the status (or lack thereof) of any provider of Hedging Transactions as an “Approved Commodity Swap Counterparty,” and (iv) such other credit factors consistently applied as each Lender customarily considers in evaluating similar oil and gas credit facilities. Borrower and the Lenders acknowledge that due to the uncertainties of the oil and gas extraction process, the Oil and Gas Properties of Borrower and its Subsidiaries are not subject to evaluation with a high degree of accuracy and are subject to potential rapid deterioration in value, the determination of the loan amount will be less than the total present value of the Proved Oil and Gas Properties of Borrower and its Subsidiaries, which Borrower acknowledges to be essential for the adequate protection of the Lenders. Without limiting the foregoing, the Lenders may exclude from the Borrowing Base any oil and gas reserves or portion of production therefrom or any income from any other property, at any time, because title information is not satisfactory, such oil and gas reserves are not Mortgaged Properties or such oil and gas reserves are not in “pay” status. For the period from and including the Closing Date to but excluding the First Redetermination Date, the amount of the The Borrowing Base shall initially be $0. The amount of 14,313,961 on the Borrowing Base shall remain at $0 until Borrower makes an initial request that the Borrowing Base be redetermined in accordance with the procedures set forth in this Section 2.9Closing Date.

Borrowing Base Standards. The Borrowing Base shall represent the approval Lender’s determination, in their its sole discretion of the Required Lenders or all Lendersdiscretion, as applicable, of Administrative Agent’s determination of the loan amount that may be supported by the Required Lenders’ or all Lenders’, as applicable, Lender’s evaluation of the Proved Oil and Gas Properties of Borrower and its SubsidiariesSubsidiaries and the other Obligated Parties. The determination of the Borrowing Base will be made in accordance with then-current practices, economic and pricing parameters, methodology, assumptions, and customary procedures and standards established by each Lender from time to time for its petroleum industry customers including without limitation (i) an analysis of such reserve and production data with respect to all of the Proved Oil and Gas Properties of Borrower and its SubsidiariesSubsidiaries and the other Obligated Parties, including the Mortgaged Properties, as is provided to the Lenders Lender in accordance herewith, (ii) an analysis of the assets, liabilities, cash flow, business, properties, prospects, management and ownership of Borrower and its SubsidiariesSubsidiaries and the other Obligated Parties, (iii) Borrower’s and its Subsidiaries’ and the other Obligated Parties’ Hedging Transactions and the status (or lack thereof) of any provider of Hedging Transactions as an “Approved Commodity Swap Counterparty,” and (iv) such other credit factors consistently applied as each Lender customarily considers in evaluating similar oil and gas credit facilities. Borrower and the Lenders Lender acknowledge that due to the uncertainties of the oil and gas extraction process, the Oil and Gas Properties of Borrower and its Subsidiaries and the other Obligated Parties are not subject to evaluation with a high degree of accuracy and are subject to potential rapid deterioration in value, the determination of the loan amount will be less than the total present value of the Proved Oil and Gas Properties of Borrower and its SubsidiariesSubsidiaries and the other Obligated Parties, which Borrower acknowledges to be essential for the adequate protection of the LendersLender. Without limiting the foregoing, the Lenders Lender may exclude from the Borrowing Base any oil and gas reserves or portion of production therefrom or any income from any other propertyproperty from the Borrowing Base, at any time, because title information is not satisfactory, such oil and gas reserves are not Mortgaged Properties or such oil and gas reserves are not in “pay” status. For the period from and including the Closing Date to but excluding the First Redetermination Date, the amount of the The Borrowing Base shall initially be $0. The amount of 1,450,000 on the Borrowing Base shall remain at $0 until Borrower makes an initial request that the Borrowing Base be redetermined in accordance with the procedures set forth in this Section 2.9Closing Date.

Borrowing Base Standards. The Borrowing Base shall represent the approval in their sole discretion of the Required Lenders or all Lenders, as applicable, of Administrative Agent’s determination of the loan amount that may be supported by the Required Lenders’ or all Lenders’, as applicable, evaluation of the Proved Oil and Gas Properties of Borrower and its Subsidiaries. The determination of the Borrowing Base will be made in accordance with then-current practices, economic and pricing parameters, methodology, assumptions, and customary procedures and standards established by each Lender from time to time for its petroleum industry customers including without limitation (i) an analysis of such reserve and production data with respect to all of the Proved Oil and Gas Properties of Borrower and its Subsidiaries, including the Mortgaged Properties, as is provided to the Lenders in accordance herewith, (ii) an analysis of the assets, liabilities, cash flow, business, properties, prospects, management and ownership of Borrower and its Subsidiaries, (iii) Borrower’s and its Subsidiaries’ Hedging Transactions and the status (or lack thereof) of any provider of Hedging Transactions as an “Approved Commodity Swap Counterparty,” and (iv) such other credit factors consistently applied as each Lender customarily considers in evaluating similar oil and gas credit facilities. Borrower and the Lenders acknowledge that due to the uncertainties of the oil and gas extraction process, the Oil and Gas Properties of Borrower and its Subsidiaries are not subject to evaluation with a high degree of accuracy and are subject to potential rapid deterioration in value, the determination of the loan amount will be less than the total present value of the Proved Oil and Gas Properties of Borrower and its Subsidiaries, which Borrower acknowledges to be essential for the adequate protection of the Lenders. Without limiting the foregoing, the Lenders may exclude from the Borrowing Base any oil and gas reserves or portion of production therefrom or any income from any other property, at any time, because title information is not satisfactory, such oil and gas reserves are not Mortgaged Properties or such oil and gas reserves are not in “pay” status. For the period from and including the Closing Date to but excluding the First Redetermination Date, the amount of the The Borrowing Base shall initially be $0. The amount of 7,000,000 on the Borrowing Base shall remain at $0 until Borrower makes an initial request that the Borrowing Base be redetermined in accordance with the procedures set forth in this Section 2.9Closing Date.

Borrowing Base Standards. The Borrowing Base shall represent the approval in their sole discretion of the Required Lenders or all Lenders, as applicable, of Administrative Agent’s determination of the loan amount that may be supported by the Required Lenders’ or all Lenders’, as applicable, evaluation of the Proved Oil and Gas Properties of Borrower and its Subsidiaries. The determination of the Borrowing Base will be made in accordance with then-current practices, economic and pricing parameters, methodology, assumptions, and customary procedures and standards established by each Lender from time to time for its petroleum industry customers including without limitation (i) an analysis of such reserve and production data with respect to all of the Proved Oil and Gas Properties of Borrower and its Subsidiaries, including the Mortgaged Properties, as is provided to the Lenders in accordance herewith, (ii) an analysis of the assets, liabilities, cash flow, business, properties, prospects, management and ownership of Borrower and its Subsidiaries, (iii) Borrower’s and its Subsidiaries’ Hedging Transactions and the status (or lack thereof) of any provider of Hedging Transactions as an “Approved Commodity Swap Counterparty,” and (iv) such other credit factors consistently applied as each Lender customarily considers in evaluating similar oil and gas credit facilities. Borrower and the Lenders acknowledge that due to the uncertainties of the oil and gas extraction process, the Oil and Gas Properties of Borrower and its Subsidiaries are not subject to evaluation with a high degree of accuracy and are subject to potential rapid deterioration in value, the determination of the loan amount will be less than the total present value of the Proved Oil and Gas Properties of Borrower and its Subsidiaries, which Borrower acknowledges to be essential for the adequate protection of the Lenders. Without limiting the foregoing, the Lenders may exclude from the Borrowing Base any oil and gas reserves or portion of production therefrom or any income from any other property, at any time, because title information is not satisfactory, such oil and gas reserves are not Mortgaged Properties or such oil and gas reserves are not in “pay” status. For the period from and including the Closing Date to but excluding the First Redetermination Date, the amount of the The Borrowing Base shall initially be $0. The amount of 9,686,039 on the Borrowing Base shall remain at $0 until Borrower makes an initial request that the Borrowing Base be redetermined in accordance with the procedures set forth in this Section 2.9Closing Date.