New 8-k filing on Friday:
In its August 1, 2016 press release, the Company provided disclosure related to covenants under the indentures governing the Company’s senior unsecured notes that limit the Company’s ability to incur additional indebtedness. Specifically, the incurrence by the Company (or any of the guarantors under the indentures) of additional indebtedness and letters of credit under the Company’s revolving credit facility in an aggregate principal amount at any one time outstanding is not to exceed the greater of (a) $300.0 million or (b) 35% of the Company's Adjusted Consolidated Net Tangible Assets (“ACNTA”) determined as of the date of the incurrence of such indebtedness. ACNTA is defined as the Company’s PV-10 value plus capitalized costs for unproved properties plus consolidated net working capital and other tangible assets. The Company reported in its August 1, 2016 press release that, at June 30, 2016, 35% of the Company’s ACNTA was equal to approximately $380 million.
The Company has since determined that an error was made in the computation of the ACNTA. The Company has determined that the correct value of 35% of the Company’s ACNTA at June 30, 2016 is approximately $323 million. No additional indebtedness was incurred based on the erroneous computation of ACNTA.