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Subsequent Event
12 Months Ended
Dec. 31, 2015
Subsequent Events [Abstract]  
Subsequent Event
Subsequent Event
On January 14, 2016 the Company announced the commencement of a private exchange offer (the "Exchange Offer") and consent solicitation (the "Consent Solicitation") to certain eligible holders for up to $300 million aggregate principal amount of its outstanding 10% Senior Notes due 2017 (the "Old Notes") for up to (i) $75 million in cash, (ii) $202.5 million aggregate principal amount of its newly issued 10% Second Lien Senior Secured Notes due 2021 (the "New Notes"), and (iii) 6 million shares of its common stock. The Exchange Offer and Consent Solicitation were made upon the terms and subject to the conditions set forth in the Confidential Offering Memorandum and Consent Solicitation Statement (the "Offering Memorandum") and related letter of transmittal and consent, each dated January 14, 2016.
The Exchange Offer and Consent Solicitation closed on February 17, 2016, and in satisfaction of the consideration for $214.4 million in aggregate principal amount of the Old Notes, representing approximately 61% of the outstanding aggregate principal amount of Old Notes, validly tendered (and not validly withdrawn) in the Exchange Offer, the Company (i) paid approximately $53.6 million of cash, (ii) issued $144.7 million aggregate principal amount of New Notes and (iii) issued 4,287,580 shares of its common stock. Following the completion of the Exchange Offer, $135.6 million in aggregate principal amount of the Old Notes remain outstanding. The Consent Solicitation eliminates or waives substantially all of the restrictive covenants contained in the indenture governing the Old Notes.

The indenture governing the New Notes contains affirmative and negative covenants that, among other things, limit the ability of the Company and the subsidiary guarantors of the New Notes to incur indebtedness; purchase or redeem stock; make certain investments; create liens that secure debt; enter into transactions with affiliates; sell assets; refinance certain indebtedness; merge with or into other companies or transfer substantially all of their assets; and, in certain circumstances, to pay dividends or make other distributions on stock. The New Notes are fully and unconditionally guaranteed on a senior basis by certain wholly-owned subsidiaries of the Company.
The Company will pay 10% interest per annum on the principal amount of the New Notes, semi-annually in arrears on February 15 and August 15 of each year.
The New Notes are secured by second-priority liens on substantially all of the Company’s and the subsidiary guarantors’ oil and gas properties and substantially all of their other assets to the extent such properties and assets secure the Credit Agreement (as defined below), except for certain excluded assets. Pursuant to the terms of an intercreditor agreement, the security interest in those properties and assets that secure the New Notes and the guarantees are contractually subordinated to liens that secure the Credit Agreement and certain other permitted indebtedness. Consequently, the New Notes and the guarantees will be effectively subordinated to the Credit Agreement and such other indebtedness to the extent of the value of such assets.