Common use of Minimum Hedging Clause in Contracts

Minimum Hedging. Within sixty (60) days following the Closing Date, the Borrower shall enter into Hedging Transactions covering at least forty-five percent (45%) of the Borrower’s and its Subsidiaries’ reasonably anticipated projected net production of oil and natural gas volumes from proved developed producing reserves of the Borrower and its Subsidiaries for twenty-four (24) months from the Closing Date at prices reasonably satisfactory to the Administrative Agent (the “Initial Hedging Requirement”). Thereafter, the Borrower shall maintain on a rolling twenty-four (24) months basis, Hedging Transactions covering at least forty-five percent (45%) of the Borrower’s and its Subsidiaries’ reasonably anticipated projected net production of oil and natural gas volumes from proved developed producing reserves of the Borrower and its Subsidiaries at prices reasonably satisfactory to the Administrative Agent.