Common use of Minimum Hedging Volumes Clause in Contracts

Minimum Hedging Volumes. The Issuer and/or other Note Parties will (a) within 45 days after the Effective Date (or such later date with the consent of the Requisite Holders in their sole discretion), enter into Swap Agreements reasonably satisfactory to the Requisite Holders with Approved Counterparties pursuant to which the Note Parties have hedged notional volumes of not less than (x) 85% of the reasonably anticipated projected production (based on the Initial Reserve Report updated by the Issuer to include ▇▇▇▇▇ brought into production prior to the Effective Date) of crude oil and natural gas, calculated separately, from Proved Developed Producing Reserves of Oil and Gas Properties of the Note Parties for each month during the subsequent thirty-six (36) calendar month period immediately following the Effective Date and (y) 60% of the reasonably anticipated projected production (based on the Initial Reserve Report updated by the Issuer to include ▇▇▇▇▇ brought into production prior to the Effective Date) of crude oil and natural gas, calculated separately, from Proved Developed Producing Reserves of Oil and Gas Properties of the Note Parties for each month during the thirty-seven (37) to sixty (60) calendar month period immediately following the Effective Date and (b) maintain at all times Swap Agreements reasonably satisfactory to the Requisite Holders with Approved Counterparties pursuant to which the Note Parties shall hedge notional volumes of not less than 85% of the reasonably anticipated projected production (based on the then most recently delivered Reserve Report hereunder) of crude oil and natural gas, calculated separately, from Proved Developed Producing Reserves of Oil and Gas Properties of the Note Parties for each calendar quarter during the subsequent thirty-six (36) calendar month period immediately following any date of determination (in each case, as forecasted based upon the most recent Reserve Report delivered pursuant hereto (after, for the avoidance of doubt, giving effect to the acquisition of the Whitehorse Assets being acquired pursuant to the Whitehorse Acquisition Agreement on and as of the Effective Date)); provided, that to the extent the delivery of a new Reserve Report hereunder results in a failure to satisfy the requirements of this clause (b), the Note Parties shall have thirty (30) days following the delivery of such Reserve Report (or such later date with the consent of the Requisite Holders in their sole discretion) to enter into additional Swap Agreements to the extent necessary to satisfy the requirements of this clause (b).