text: **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**
  
  **NOTE 22 – CREDIT FACILITIES continued**
  
  The principal amount of the loans borrowed under our Junior Credit Facility is due in full on the maturity date. 
  Interest on the Junior Credit Facility accrues at a rate equal to the greater of (i) 8.50% or (ii) a base rate (being, at 
  our option, either (a) LIBOR for the applicable interest period (adjusted for Eurodollar Reserve Requirements) or (b) 
  the greatest of (x) the prime rate announced by Wells Fargo Bank, N.A., (y) the federal funds rate plus 0.50% and (z) 
  one-month adjusted LIBOR plus 1.00%), plus a margin of either 6.5% or 7.5%, based on the base rate selected. 
  
  The Company is also required under our Junior Credit Facility to maintain the following financial ratios: 
  
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  a current ratio, consisting of consolidated current assets including undrawn borrowing capacity to 
  consolidated current liabilities, of not less than 1.0 to 1.0 as of the last day of any fiscal quarter; 
  a maximum leverage ratio, consisting of consolidated debt to adjusted consolidated EBITDAX (as defined 
  in the Junior Credit Facility), of not greater than 4.5 to 1.0 as of the last day of any fiscal quarter 
  (beginning 30 September 2013); and 
  an asset coverage ratio, consisting of PV10 to consolidated debt, of not less than 1.5 to 1.0, as of certain 
  test dates. 
  
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