Definition; Initial Borrowing Base Sample Clauses

Definition; Initial Borrowing Base. The term "Borrowing Base" means, as of the date of determination thereof, an amount as determined by the Agent with the approval of the Required Lenders in their discretion in accordance with then-current practices, economic and pricing parameters, and customary procedures and standards established by them from time to time for their petroleum industry customers including without limitation (a) an analysis of such reserve and production data with respect to the Mineral Interests of the Borrower in all of its oil and gas properties, including the Mortgaged Properties, as is provided to the Agent in accordance herewith, (b) an analysis of the assets, liabilities, cash flow, business, properties, prospects, management and the ownership of the Borrower and its Affiliates, and (c) such other credit factors consistently applied as the Lenders customarily consider in evaluating similar oil and gas credits. The Agent and the Lenders have no obligation to agree upon or determine the Borrowing Base at any particular amount, whether in relation to the Aggregate Commitments or otherwise. If the Required Lenders cannot agree on the amount of the Borrowing Base, then the Borrowing Base shall be determined on the basis of the weighted arithmetic average of the Borrowing Base as determined by the each individual Lender. Notwithstanding anything to the contrary contained herein, the amount of the Borrowing Base may not be increased at any time without the consent of 100% of the Lenders. The Borrowing Base shall initially be $40,000,000.