Law360, New York ( January 30, 2015, 5:53 PM EST) -- The sudden and steep drop in oil prices is likely to cause a number of exploration and production companies to default under their debt agreements, perhaps as the result of a financial covenant breach or the failure to timely cure a borrowing base deficiency. For the last several years E&P companies thrived on high commodity prices and borrowed money from financial institutions eager to take part in the U.S. oil and gas renaissance. In this new price environment many producers will face a different situation — default — which they will need to resolve with their lenders. Producers and their bankers should understand the various ways in which they can address a default under a credit agreement. This article lays out a range of options that are available to temporarily or permanently move past a default under an E&P company's reserved-based credit facility....