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Senior Secured Credit Agreement
 3 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Senior Secured Credit Agreement Senior Secured Credit Agreement
On April 11, 2016, the Company entered into a three-year, senior secured reserve-based credit facility ("Facility") in an amount up to $50 million. On May 25, 2018, we entered into the third amendment to our credit agreement governing the revolving credit facility to, among other things, extend the maturity date to April 11, 2021. On December 31, 2018, we entered into the fourth amendment to our credit agreement governing the revolving credit facility to broaden the definition for the Use of Proceeds.
As of September 30, 2020, the Company's elected commitment and borrowing base were $27 million. However, our ability to access the borrowing base is subject to, and currently limited by, the Company's compliance with certain financial covenants, including a debt service ratio covenant described below. As a consequence of declining oil prices adversely impacting our EBITDA upon which the debt service ratio is calculated, our availability was limited to approximately $12 million at September 30, 2020. We were in compliance with all financial covenants and there were no amounts outstanding under the Facility at September 30, 2020, which is secured by substantially all of the Company's Delhi and Hamilton Dome field assets.
Under the Facility the borrowing base is redetermined semiannually. On November 2, 2020, the Company completed its fall redetermination of the Facility extending the facility three years and resulting in a decrease of the borrowing base to $23 million, which remains undrawn. See Note 17 - Subsequent Event for additional information.
Borrowings from the Facility may be used for the acquisition and development of oil and gas properties, investments in cash flow generating assets complimentary to the production of oil and gas, and for letters of credit and other general corporate purposes.
The Facility included a placement fee of 0.50% on the initial borrowing base, amounting to $50,000, and carries a commitment fee of 0.25% per annum on the undrawn portion of the borrowing base. Any borrowings under the Facility will bear interest, at the Company’s option, at either LIBOR plus 2.75% or the Prime Rate, as defined under the Facility, plus 1.00%. The Facility contains financial covenants including a requirement that the Company maintain, as of the last day of each fiscal quarter, (a) a maximum total leverage ratio of not more than 3.00 to 1.00, (b) a debt service coverage ratio of not less than 1.10 to 1.00, and (c) a consolidated tangible net worth of not less than $50 million, all as defined under the Facility.
In connection with the Facility, the Company incurred $168,972 of past debt issuance costs. Such costs were capitalized in "Other Assets, net" and are being amortized to expense. The unamortized balance in debt issuance costs related to the Facility was $8,100 as of September 30, 2020.