Fundare Resources Announces Closing of $500 Million RBL Credit Facility for Upstream Redtail Business
DENVER, December 12, 2022 / Businesswire/ — Fundare Resources Company, LLC (“Fundare” or the “Company”) announced that it has entered into a credit agreement (the “Credit Agreement”) among Fundare Redtail, LLC (the “Borrower”) and a syndicate of lenders led by BOK Financial as administrative agent. KeyBanc Capital Markets served as joint lead arranger and UMB Bank served as syndication agent.
The Credit Agreement provides for a reserve-based revolving facility (the “Credit Facility”) in an aggregate original commitment amount of $500 million with an initial borrowing base of $120 million that will be redetermined semi-annually. The Credit Facility will be used to refinance existing indebtedness, to fund future development of the Borrower’s oil and gas properties, and for other corporate development opportunities and general corporate purposes.
Cody Truitt, President & Chief Executive Officer of Fundare commented, “The closing of our new credit facility marks a significant step in the Company’s evolution. We are excited to accelerate development of the Fundare Redtail assets. We’ve recently received approval from the COGCC to drill and complete an eight well pad in Weld County and expect to expand development activities in the spring. I would like to thank Cibolo Energy Partners for their support in making the acquisition of Redtail in the fall of 2021 possible, and to also thank our new bank group for its support to grow the business.”
The Company also has planned activity for its other businesses heading into 2023. Moonrise Midstream, LLC has recently signed two additional commercial agreements adding third-party volumes and revenue streams to the business. Similarly, Rangeview Resources, LLC, for whom a Company-owned subsidiary serves as a contract operator, is expected to commence development activities in the Green River Basin during the summer of 2023 with the drilling of two vertical Fort Union wells in the Milagro Unit.
Holland & Hart LLP acted as legal counsel to Fundare and Baker Botts LLP acted as legal counsel to BOK Financial.
About Fundare Resources Company, LLC
Fundare Resources Company, LLC is a private oil and gas company pursuing low risk, yield driven, producing properties that maximize shareholder returns through the implementation of advanced completion technologies and prudent, low-cost operatorship. Fundare, Latin for “laying a foundation”, is built around the principle of establishing a foundation of assets managed with integrity, teamwork and transparency; proven values that have resulted in repeated success for its investors. Companies under Fundare’s management include Fundare Redtail, LLC, Rangeview Green River, LLC, and Moonrise Midstream, LLC.
Further information can be found at www.fundareresources.com.
Chief Financial Officer