Amendment to Revolver Loan Agreement between Energy Resources 12, L.P., Energy Resources 12 Operating Company, Simmons Bank, and Lenders (December 27, 2018)
This agreement amends the existing Revolver Loan Agreement between Energy Resources 12, L.P., Energy Resources 12 Operating Company, Simmons Bank (as administrative agent), and other lenders. The amendment lowers the minimum hedging requirement for the borrowers' oil and gas production from 80% to 50% on a rolling 18-month basis, effective November 1, 2018, and updates the basis for this calculation. All other terms of the original loan agreement remain unchanged. The amendment is effective upon acceptance by all parties.
Exhibit 10.9
December 27, 2018
Energy Resources 12, L.P
Energy Resources 12 Operating Company (collectively, the "Borrowers")
5815 N. Western Avenue
Oklahoma City, OK 73118
Gentlemen.
Simmons Bank, as administrative agent for the Lenders signatory below, hereby agrees to amend existing Section 6.28 of the Revolver Loan Agreement between and among Borrowers, the Administrative Agent and the Lenders signatory party thereto dated August 31, 2018 (as amended, restated or otherwise modified from time to time, the "Revolver Agreement") to provide that the minimum hedging requirement is fifty percent (50%) of Borrowers' oil and gas monthly production initially based upon that certain reserve report prepared for Lenders by Schaper International Petroleum Consulting, LLC in connection with the closing of the Loan on a rolling eighteen (18) month basis through the Revolver Final Maturity Date (with engineering report(s) to be updated every six (6) months), and thereby eliminating, effective as of November 1, 2018, the initial eighty percent (80%) minimum hedging requirement and the requirement that Borrower comply with the minimum hedging requirement at eighty percent (80%) until March 31, 2019.
Please indicate your acceptance of this letter agreement where indicated below. This letter agreement is a Loan Document as defined in the Revolver Agreement and may be executed in multiple counterparts, each of which shall be deemed an original.
All other terms and provisions of the Revolver Agreement remain in full force and effect.
| Simmons Bank
By: /s/ Chris Mostek Chris Mostek Senior Vice President Agent and Lender |
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The foregoing letter agreement is accepted and agreed to by each of the undersigned Borrowers, as of the 27th day of December, 2018:
Energy Resources 12, L.P.
By: /s/ David S. McKenney
David S. McKenney
Chief Financial Officer
Energy Resources Operating Company, LLC
By: /s/ David S. McKenney
David S. McKenney
Chief Financial Officer
The foregoing letter agreement is accepted and agreed to by each of the undersigned Lenders to the Revolver Agreement, effective as of the 27th day of December, 2018.
Arvest Bank
By: /s/ S. Matt Condry
S. Matt Condry,
Vice President-Commercial Banking
West Texas National Bank
By: /s/ Thomas E. Stelmar, Jr.
Thomas E. Stelmar, Jr.
Senior Vice President
