This excerpt taken from the ARD 10-Q filed May 8, 2009.
Significant Subsequent Events occurring after March 31, 2009:
Subsequent to March 31, 2009, the Company entered into an agreement to extend the maturity period on our existing credit facility. This agreement extended the maturity date to July 15, 2009 to allow the Company to complete negotiations on a new credit facility. At the Companys election, the extension of the credit facility included a decrease in the borrowing base to $75 million. The facility remained at $150 million and all other terms and conditions remained the same.
Subsequent to March 31, 2009, the Company determined to monetize the balance of its current hedging position. This hedging position is a zero-cost collar on 1,000 barrels of oil per day, with a floor of $100 and a ceiling of $197 and continued through December 2009. The amounts for May 2009 will be paid as usual and the remaining amounts will be paid as a lump sum. Combined these two items will net approximately $9.5 million dollars to the Company.
Subsequent to March 31, 2009, the Company entered into an agreement for zero-cost collars on a portion of oil production, equal to 3,000 net barrels of oil per day, beginning in June 2009 and continuing through December 2009. Under the collar agreements, the Company will receive the difference between an agreed upon average NYMEX WTI index price and a floor price of $50.00, if the index price is below the floor price. The Company will pay the difference between the agreed upon contracted ceiling price of $72.60 and the index price only if the index price is above the contracted ceiling price. No amounts are paid or received if the index price is between the contracted floor and ceiling prices. We have designated these derivatives for hedge accounting as cash flow hedges.