Exhibit 10.1

 

[EXECUTION COPY]

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of
September 21, 2011, is among LONE PINE RESOURCES INC., a Delaware corporation
(“Parent”), LONE PINE RESOURCES CANADA LTD., formerly known as Canadian Forest
Oil Ltd., a corporation amalgamated under the laws of the Province of Alberta,
Canada (“Borrower”), each of the lenders that is a signatory to, or which
becomes a signatory to, the Credit Agreement (together with its successors and
assigns, the “Lenders”), JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as
Administrative Agent (the “Administrative Agent”) and the other agents party
thereto.

 

W I T N E S S E T H:

 

1.             Parent, Borrower, the Administrative Agent, the Lenders and
others as agents are parties to that certain Credit Agreement dated as of March
18, 2011, as previously amended pursuant to that certain First Amendment to
Credit Agreement, dated as of April 29, 2011 (as amended, the “Credit
Agreement”), pursuant to which the Lenders agreed to make loans to, and
extensions of credit on behalf of, Borrower.

 

2.             The parties to the Credit Agreement intend to amend the Credit
Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the parties hereto agree as follows:

 

I.              Amendment.

 

A.            Section 2.7(b) of the Credit Agreement hereby is amended by (i)
replacing the phrase “prior to February 15 of each calendar year” with the
phrase “prior to (x) for the 2012 calendar year, March 31st and (y) for each
calendar year thereafter, March 1st”, (ii) replacing the phrase “prepared by
Borrower’s internal petroleum engineers and audited by an Approved Engineer”
with the phrase “prepared by an Approved Engineer or prepared by Borrower and
audited by an Approved Engineer”, and (iii) replacing the phrase “as of April
1st of such calendar year” with the phrase “as of May 1st of such calendar
year”.

 

B.            Section 2.7(c) of the Credit Agreement hereby is amended by (i)
replacing the phrase “prior to August 15th of each calendar year” with the
phrase “prior to September 1st of each calendar year” and (ii) replacing the
phrase “as of October 1st of such calendar year” with the phrase “as of November
1st of such calendar year”.

 

C.            Section 5.1(e) of the Credit Agreement hereby is amended in its
entirety to read as follows:

 

“              (e)           By March 31st for the 2012 calendar year, and March
1st of each calendar year thereafter, a Reserve Report prepared by an Approved
Engineer or prepared by Borrower and audited by an Approved Engineer (the
“Independent Reserve Report”), and by September 1st of each calendar year, a
Reserve Report prepared by Borrower (subject to the proviso contained in the
first sentence of

 

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Section 2.7(c)), utilizing the customary discount rates and price deck of the
Administrative Agent and in form and substance acceptable to the Administrative
Agent (the “Internal Reserve Report”);”.

 

D.            Section 7.7(a) of the Credit Agreement hereby is amended in its
entirety to read as follows:

 

“              (a)           At no time shall Borrower and Parent and its
Restricted Subsidiaries have (i) Hedging Agreements rolling on a five-year basis
relating to crude oil or natural gas liquids in place with respect to more than
(A) 75% during the first three years, (B) 65% during the fourth year, and (C)
60% during the fifth year, of such rolling five-year basis, of reasonably
anticipated (as of the date when entered into) crude oil or natural gas liquids
Hydrocarbon production net of royalties from the “total proved oil and gas
reserves” (as defined in the standards and guidelines of the Commission or in
accordance with NI 51-101, provided that if both the Commission standards and
guidelines and NI 51-101 are applicable to the Parent, the Commission standards
and guidelines shall control) or (ii) Hedging Agreements rolling on a five-year
basis relating to natural gas in place with respect to more than (A) 75% during
the first three years, (B) 65% during the fourth year, and (C) 60% during the
fifth year, of such rolling five-year basis, of reasonably anticipated (as of
the date when entered into) natural gas Hydrocarbon production net of royalties
from the “total proved oil and gas reserves” (as defined in the standards and
guidelines of the Commission or in accordance with NI 51-101, provided that if
both the Commission standards and guidelines and NI 51-101 are applicable to the
Parent, the Commission standards and guidelines shall control), in either case
which are attributable to the Hydrocarbon Interests of Borrower and its
Restricted Subsidiaries as set forth in the most recently delivered Reserve
Report.”

 

II.            Borrowing Base.  Each of the Administrative Agent, the Lenders,
the Borrower and the Parent agree that, for the period from and including the
Second Amendment Effective Date (as defined below) until the then scheduled
redetermination as of May 1, 2012, but subject to Section 2.7 of the Credit
Agreement in all respects, the Borrowing Base will be set at C$425,000,000.

 

III.           Effectiveness.  This Amendment shall become effective as of the
date hereof (the “Second Amendment Effective Date”) when the Administrative
Agent shall have received:

 

A.            Counterparts hereof duly executed by Borrower, Parent, the
Administrative Agent and each of the Lenders (or, in the case of any party as to
which an executed counterpart shall not have been received, telegraphic, telex,
or other written confirmation from such party of execution of a counterpart
hereof by such party);

 

B.            Any Loan Document requested by a Lender pursuant to Section 2.9(e)
of the Credit Agreement;

 

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C.            Payment of (i) an upfront fee to the Administrative Agent for the
account of each Lender in an amount equal to 60 basis points multiplied by the
difference between the amount of such Lender’s share of the Borrowing Base
immediately prior to the Second Amendment Effective Date and the amount of such
Lender’s share of the Borrowing Base immediately after the Second Amendment
Effective Date and (ii) any fees or compensation then due and owing to any
Lender pursuant to the terms of the Credit Agreement.

 

IV.           Reaffirmation of Representations and Warranties.  To induce the
Lenders and the Administrative Agent to enter into this Amendment, Parent and
Borrower each hereby reaffirms, as of the date hereof, that the representations
and warranties of each Loan Party set forth in the Loan Documents to which it is
a party are true and correct in all material respects on and as of the date
hereof (or, if stated to have been made expressly as of an earlier date, were
true and correct in all material respects as of such earlier date).

 

V.            Defined Terms.  Except as amended hereby, terms used herein when
defined in the Credit Agreement shall have the same meanings herein unless the
context otherwise requires.

 

VI.           Reaffirmation of Credit Agreement.  This Amendment shall be deemed
to be an amendment to the Credit Agreement, and the Credit Agreement, as amended
hereby, is hereby ratified, approved and confirmed in each and every respect. 
All references to the Credit Agreement herein and in any other document,
instrument, agreement or writing shall hereafter be deemed to refer to the
Credit Agreement as amended hereby.

 

VII.         Governing Law.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE PROVINCE OF ALBERTA AND CANADA APPLICABLE THEREIN.

 

VIII.        Severability of Provisions. Any provision of this Amendment held to
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

 

IX.           Counterparts. This Amendment may be executed in counterparts (and
by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  Delivery of an executed counterpart of a signature page of
this Amendment by telecopy shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

X.            Headings.  Article and section headings used herein are for
convenience of reference only, are not part of this Amendment and shall not
affect the construction of, or be taken into consideration in interpreting, this
Amendment.

 

XI.           Successors and Assigns.  This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

 

XII.         No Oral Agreements.  THIS AMENDMENT, THE CREDIT AGREEMENT, AS
AMENDED HEREBY, AND THE OTHER LOAN DOCUMENTS REPRESENT THE

 

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FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[SIGNATURES BEGIN ON FOLLOWING PAGE]

 

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IN WITNESS WHEREOF, Parent, Borrower, the undersigned Lenders and the
Administrative Agent under the Credit Agreement have executed this Amendment as
of the date first above written.

 

 

 

LONE PINE RESOURCES INC.

 

 

 

By:

/s/ David M. Anderson

 

Name:

David M. Anderson

 

Title:

President and Chief Executive Officer

 

 

 

 

 

LONE PINE RESOURCES CANADA LTD., formerly known as Canadian Forest Oil Ltd.

 

 

 

By:

/s/ David M. Anderson

 

Name:

David M. Anderson

 

Title:

President

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Administrative Agent and as a
Lender

 

 

 

 

 

By:

/s/ Deborah Booth

 

Name:

Deborah Booth

 

Title:

Vice President

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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THE TORONTO-DOMINION BANK, as a Co-Syndication Agent and as a Lender

 

 

 

 

 

By:

/s/ Kelly Hundal

 

Name:

Kelly Hundal

 

Title:

Authorized Signatory

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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BANK OF MONTREAL, as a Co-Syndication Agent and as a Lender

 

 

 

 

 

By:

/s/ Katherine Wytrykush

 

Name:

Katherine Wytrykush

 

Title:

Vice President

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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THE BANK OF NOVA SCOTIA, as a Co-Documentation Agent and as a Lender

 

 

 

 

 

 

 

 

By:

/s/ Angela Becker

 

 

Name:

Angela Becker

 

 

Title:

Associate Director

 

 

 

 

 

By:

/s/ Dan Lindquist

 

 

Name:

Dan Lindquist

 

 

Title:

Managing Director

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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WELLS FARGO FINANCIAL CORPORATION CANADA, as a Co-Documentation Agent and as a
Lender

 

 

 

 

 

 

 

 

By:

/s/ Richard Valade

 

 

Name:

Richard Valade

 

 

Title:

President

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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UNION BANK, CANADA BRANCH, as a Lender

 

 

 

 

 

 

 

 

By:

/s/ Matt Schwann

 

 

Name:

Matt Schwann

 

 

Title:

Vice President

 

 

 

 

 

By:

/s/ Phil Taylor

 

 

Name:

Phil Taylor

 

 

Title:

Senior Vice President

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH (f/k/a CREDIT SUISSE, Cayman Islands
Branch), as a Lender

 

 

 

 

 

 

 

 

By:

/s/ Jay Chall

 

 

Name:

Jay Chall

 

 

Title:

Director

 

 

 

 

 

By:

/s/ Michael D. Spaight

 

 

Name:

Michael D. Spaight

 

 

Title:

Associate

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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BANK OF AMERICA, N.A., CANADA BRANCH, as a Lender

 

 

 

 

 

 

 

 

By:

/s/ James K.G. Campbell

 

 

Name:

James K.G. Campbell

 

 

Title:

Director

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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BNP PARIBAS [Canada], as a Lender

 

 

 

 

 

 

 

 

By:

/s/ Cory Wallin

 

 

Name:

Cory Wallin

 

 

Title:

Director

 

 

 

 

 

 

 

 

By:

/s/ David Foltz

 

 

Name:

David Foltz

 

 

Title:

Managing Director

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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CANADIAN IMPERIAL BANK OF COMMERCE, as a Lender

 

 

 

 

 

 

 

 

By:

/s/ Scott Fraser

 

 

Name:

Scott Fraser

 

 

Title:

Director

 

 

 

 

 

 

 

 

By:

/s/ Chris Perks

 

 

Name:

Chris Perks

 

 

Title:

Managing Director

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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ROYAL BANK OF CANADA, as a Lender

 

 

 

 

 

 

 

 

By:

/s/ Sonia G. Tibbatts

 

 

Name:

Sonia G. Tibbatts

 

 

Title:

Authorized Signatory

 

 

[Signature Page - Second Amendment to Lone Pine Credit Agreement]

 

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