On September 11, 2009, Quest Resource Corp. entered into a second amended and restated credit Agreement, as the borrower, with Royal Bank of Canada, as administrative agent and collateral agent, and the lenders party thereto, which amended and restated the company�s existing credit facility. A new revolving line of credit was added permitting borrowings of up to an initial maximum amount of $5.6 million until November 30, 2009 and thereafter, provided no event of default exists, up to a maximum of $8.0 million. The proceeds of this new revolving line of credit will be used primarily to fund development costs associated with two new horizontal wells and one vertical well in Wetzel County, West Virginia and one new vertical well in Lewis County, West Virginia and for general and administrative expenses, working capital and other corporate purposes. The maturity date of the revolving line of credit is July 11, 2010. The maturity date of the existing term loan was extended from July 11, 2010 to January 11, 2012. The quarterly principal payments of $1.5 million due September 30, 2009, December 31, 2009, March 31, 2010 and June 30, 2010 were effectively deferred until July 11, 2010 at which time all $6 million will be due. Thereafter, the company will be required to make a principal repayment of $1.5 million at the end of each calendar quarter until maturity. In addition to the revolving line of credit and the term loan, there are three promissory notes that have been issued under the credit agreement: a $862,785.96 interest deferral note dated June 30, 2009 (representing outstanding due and unpaid interest on the term loan), a $282,500 payment-in-kind note dated May 29, 2009 (representing a 1% amendment fee payable by the company in connection with the fourth amendment to the company�s existing credit facility), and a second $25,000 payment-in-kind note dated June 30, 2009 (representing an amendment fee payable by the company in connection with the fifth amendment to the existing credit facility). The maturity date of the interest deferral note was extended to July 11, 2010. The maturity dates of the two payment-in-kind notes remained July 11, 2010. The revolving line of credit, term loan, interest deferral note and the two payment-in-kind notes may be prepaid at any time without any premium or penalty. The interest rate on the term loan, the interest deferral note and the two payment-in-kind notes was increased from the base rate plus 9% to the base rate plus 10%. The base rate is generally the higher of the federal funds rate plus 0.50% or RBC�s prime rate. The 'Eurodollar' interest rate option was removed from the credit agreement. Payment of interest on these notes may be deferred until July 11, 2010. Deferred and unpaid interest will bear interest at the base rate plus 10%, compounded quarterly. The revolving line of credit is non-interest bearing. Instead, the company is required to pay to the lenders a facility fee equal to $2.0 million on July 11, 2010. The facility fee will be proportionately reduced if all of the following facility fee reduction conditions are satisfied: repayment and termination by the company of the revolving line of credit, payment of the deferred quarterly principal payments under the term loan, repayment of the interest deferral note and the two payment-in-kind notes and payment of any deferred interest under the term loan, the interest deferral note and the two payment-in-kind notes.

Quest Resource Corporation (QRCP) announced that it has received a notice from the staff of The NASDAQ Stock Market, dated September 15, 2009, indicating that, because the Company's stock has not maintained a minimum bid price of $1 per share for the last 30 consecutive business days, a deficiency exists under NASDAQ Listing Rule 5450(a)(1). However, NASDAQ Listing Rule 5810(c)(3)(A) provides the Company a 180 calendar day grace period to regain compliance. QRCP's grace period will expire on March 15, 2010. QRCP will automatically regain compliance with NASDAQ rules if at any time during this grace period the bid price for its shares closes at $1 or more per share for a minimum of ten consecutive business days. If QRCP has not regained compliance by the end of this grace period it will receive a written notification that its securities are subject to delisting, a determination it can choose to appeal to NASDAQ Hearing's Panel. Alternatively, the Company may be granted an additional grace period if it meets the initial listing standards of The NASDAQ Capital Market, with the exception of bid price. If the Company uses this alternative, it will need to submit an application to transfer its securities to The NASDAQ Capital Market.

Quest Resource Corp. reported earnings results for the second quarter ended June 30, 2009. Net loss for the quarter was $30.53 million, up $97.65 million for the same quarter the previous year 2008.