Clayton Williams Energy, Inc. (NASDAQ:CWEI) today
announced that its bank group has affirmed the borrowing base under its
secured revolving credit facility at $250 million, its existing level
since May 2008.
Concurrently with the reaffirmation of the borrowing base, the credit
facility, which is provided by a syndicate of nine banks led by JPMorgan
Chase Bank, N.A., was amended to, among other things, increase the
usage-based pricing formulas in the credit facility. The Eurodollar rate
margin was increased to a range of 2.00% to 3.00% from a range of 1.50%
to 2.25%. The alternate base rate margin was increased to a range of
1.125% to 2.125% from a range of 0.25% to 1.00%. The unused commitment
fee rate was increased to a flat rate of 0.50% from a range of 0.375% to
0.50%. In addition, the credit facility was amended to provide that the
Company will not permit the ratio of total indebtedness outstanding to
EBITDAX to exceed 3.5 to 1 for any period from the effective date of the
amendment through the end of fiscal 2010, 3.25 to 1 for any period
during fiscal 2011, or 3 to 1 for any period after fiscal 2011.
Clayton Williams Energy, Inc. is an independent energy company located
in Midland, Texas.
This release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements, other than
statements of historical or current facts, that address activities,
events, outcomes and other matters that we plan, expect, intend, assume,
believe, budget, predict, forecast, project, estimate or anticipate (and
other similar expressions) will, should or may occur in the future are
forward-looking statements. These forward-looking statements are
based on management’s current belief, based on currently available
information, as to the outcome and timing of future events. The
Company cautions that its future oil and natural gas production,
revenues, cash flows, liquidity, plans for future operations, expenses,
outlook for oil and natural gas prices, timing of capital expenditures
and other forward-looking statements are subject to all of the risks and
uncertainties, many of which are beyond our control, incident to the
exploration for and development, production and marketing of oil and gas.
These risks include, but are not limited to, the possibility of
unsuccessful exploration and development drilling activities, our
ability to replace and sustain production, commodity price volatility,
domestic and worldwide economic conditions, the availability of capital
on economic terms to fund our capital expenditures and acquisitions, our
level of indebtedness, the impact of the current economic recession on
our business operations, financial condition and ability to raise
capital, declines in the value of our oil and gas properties resulting
in a decrease in our borrowing base under our credit facility and
impairments, the ability of financial counterparties to perform or
fulfill their obligations under existing agreements, the uncertainty
inherent in estimating proved oil and gas reserves and in projecting
future rates of production and timing of development expenditures,
drilling and other operating risks, lack of availability of goods and
services, regulatory and environmental risks associated with drilling
and production activities, the adverse effects of changes in applicable
tax, environmental and other regulatory legislation, and other risks and
uncertainties described in the Company's filings with the Securities and
Exchange Commission. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
Clayton Williams Energy, Inc.
Patti Hollums, 432-688-3419
Director
of Investor Relations
cwei@claytonwilliams.com
www.claytonwilliams.com
or
Mel
G. Riggs, 432-688-3431
Chief Financial Officer
