7. Long-Term Debt

Long-term debt consisted of the following: (in thousands)



	December 31,
	2017		2016
Note payable to a bank, with interest only payment until maturity.	$	—	$	2,400

Installment notes bearing interest at the rate of 4.16% to 4.6% per annum collateralized by vehicles with monthly payments including interest, insurance and maintenance of approximately $10		90		102

Future debt payments to unrelated entities as of December 31, 2017 consisted of the following: (in thousands)



	2018		2019		Total
Bank Credit Facility	$	—	$	—	$	—
Company Vehicles	$	41	$	49	$	90
Total	$	41	$	49	$	90

At December 31, 2017, the Company had a revolving credit facility with Prosperity Bank. This is the Company’s primary source to fund working capital and future capital spending. Under the credit facility, loans and letters of credit are available to the Company on a revolving basis in an amount outstanding not to exceed the lesser of $50 million or the Company’s borrowing base in effect from time to time. As of December 31, 2017, the Company’s borrowing base was $1.25 million. The borrowing base was increased to approximately $2.0 million with the March 21, 2018 amendment to the credit agreement. This increase was primarily related to increase in oil prices. The credit facility is secured by substantially all of the Company’s producing and non-producing oil and gas properties. The credit facility includes certain covenants with which the Company is required to comply. At December 31, 2017, these covenants include the following: (a) Current Ratio > 1:1; (b) Funded Debt to EBITDA < 3.5x; and (c) Interest Coverage > 3.0x. The Company was incompliance with all covenants each quarter end during 2017.

On March 21, 2018, the Company’s senior credit facility with Prosperity Bank after Prosperity Bank’s most recent review of the Company’s currently owned producing properties was amended to increase the borrowing base to $2.0 million and the maturity date was extended to July 31, 2020. The borrowing base remains subject to the existing periodic redetermination provisions in the credit facility. The interest rate remained prime plus 0.50% per annum. This rate was 5.00% at the date of the amendment. The maximum line of credit of the Company under the Prosperity Bank credit facility remained $50 million and the Company had no outstanding borrowing under the facility as of March 28, 2018.

The total borrowing by the Company under the facility at December 31, 2017 and December 31, 2016 was $0 and $2.4 million, respectively. As disclosed in previous Company filings, on February 13, 2017, 4,498,698 common shares were issued to participants of the Company’s rights offering which closed on February 2, 2017. Of the 4,498,698 common shares issued, 3,293,407 were issued to the Company’s directors, management, and affiliates. The Company received approximately $2.7 million in proceed from this offering. The proceeds were used primarily to pay off the Company’s credit facility. The next borrowing base review will take place in July 2018.