As of December 31, 2021, we had a working capital deficit of $39.4 million primarily as the result of (i) a short-term derivative liability balance of $53.1 million (ii) an accrued liabilities balance of $57.8 million (iii) an accounts payable balance of $33.8 million, and (iv) a revenue payable balance of $20.4 million, less (i) an accounts receivable balance of $92.0 million, (ii) prepaid expenses and other current assets balance of $15.0 million and (iii) a cash balance of $18.8 million.
Debt Agreements
Revolving Credit Facility. On November 2, 2018, OLLC as borrower, entered into the Revolving Credit Facility (as amended and supplemented to date) with Bank of Montreal, as administrative agent. At December 31, 2021, our borrowing base under our Revolving Credit Facility was subject to redetermination on at least a semi-annual basis primarily based on a reserve engineering report. The borrowing base as of December 31, 2021, was $245.0 million.
As of December 31, 2021, we were in compliance with all the financial (current ratio and total leverage ratio) and non-financial covenants associated with our Revolving Credit Facility.
As of December 31, 2021, we had approximately $15.0 million of available borrowings under our Revolving Credit Facility.
On November 10, 2021, we completed our scheduled semi-annual borrowing base redetermination process, pursuant to which the borrowing base under our Revolving Credit Facility was reaffirmed at $245.0 million; provided that, beginning on February 28, 2022, the borrowing base will be reduced by $5.0 million per month on the last calendar day of each month until the next regularly scheduled redetermination, which is expected to occur in April 2022. This impact on our borrowing base may limit our liquidity position and may impact our ability to finance our operations.
On June 16, 2021, we completed our scheduled semi-annual borrowing base redetermination process, pursuant to which the borrowing base under our Revolving Credit Facility was decreased from $260.0 million to $245.0 million. Additionally, the administrative agent under our Revolving Credit Facility was changed from Bank of Montreal to KeyBank.
For additional information regarding our Revolving Credit Facility, see Note 8 of the Notes to Consolidated Financial Statements included under “Item 8. Financial Statements and Supplementary Data” of this Annual Report for additional information.
COVID-19 Relief Funding. On June 22, 2021, we were notified by the bank that our PPP Loan was approved for full and complete forgiveness by the Small Business Association. For the year ended December 31, 2021, we recorded a gain on extinguishment of debt for $5.5 million in our Consolidated Statements of Operations.
Under the Consolidated Appropriations Act 2021 passed by the U.S. Congress and signed by the President on December 27, 2020, provisions of the CARES Act were extended and modified, making us eligible for the employee retention credit subject to meeting certain criteria. We met the criteria for the first and second quarters of 2021 and recognized a $2.8 million employee retention credit during the year ended December 31, 2021, which is included as a credit to general and administrative expense and to lease operating expense in our Consolidated Statements of Operations.
Material Cash Requirements
Contractual commitments. We have contractual commitments under our debt agreements, including interest payments and principal payments. See Note 8 of the Notes to Consolidated Financial Statements included under “Item 8. Financial Statements and Supplementary Data” of this Annual Report for additional information.
Lease Obligations. We have operating leases for office and warehouse spaces, office equipment, compressors and surface rentals related to our business obligations. As of December 31, 2021, our future commitments under these contracts were $5.3 million in 2022, $1.2 million in 2023, $1.5 million in 2024, $1.5 million in 2025, $1.5 million in 2026 and $4.1 million thereafter. See Note 12 of the Notes to Consolidated Financial Statements included under “Item 8. Financial Statements and Supplementary Data” of this Annual Report for additional information.