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January 10, 2014
09:03 EDTEOXEmerald Oil acquires about 20,900 acres in Williston Basin for $74.6M in cash
Emerald Oil announced that it has entered into two separate definitive purchase and sale agreements with two unrelated sellers to acquire additional core Bakken and Three Forks producing properties and undeveloped leasehold in McKenzie and Williams Counties, North Dakota. The total purchase price for the asset packages is $74.6M in cash. Upon closing, Emerald's total Williston Basin leasehold will increase to approximately 85,000 net acres. McAndrew Rudisill, Emerald's CEO, said, "The two acquisitions follow Emerald's strategy of identifying and acquiring contiguous leasehold in our immediate operating areas. This additional acreage expands Emerald's presence in our Low Rider and Lewis & Clark focus areas of McKenzie County, ND where we have seen strong production growth as a result of our successful operated well program. The proposed acquisitions are immediately accretive on all per share metrics. Emerald remains well positioned to execute on our previously announced 2014 capital spending program and will be giving updated guidance upon close, which currently is scheduled for February 13. On a separate note, although the Williston Basin experienced extreme cold during December 2013, Emerald is comfortable with its previously announced Q4 average daily production guidance of 2,300 BOE/D and exit rate of 2,400 BOE/D."
News For EOX From The Last 14 Days
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February 8, 2016
12:57 EDTEOXEmerald Oil says remains in default of credit agreement
Emerald Oil disclosed in a regulatory filing that, on January 29, the amendment to the forbearance agreement dated December 18 with regard to the credit agreement between Emerald Oil and Wells Fargo Bank expired, and the company was determined to be in default of the agreement. As a result of the default, on February 2, the Bank of Nova Scotia notified the company it had designated February 3 as the early termination date of the ISDA master agreement between the company and BNS. Thereafter, on February 3, BNS terminated the agreement and applied $17.5M of proceeds from the termination to amounts owing by the company to BNS under the credit agreement. As a result of the payment of the agreement termination proceeds, as well as the proceeds from other transactions consummated by the company, Emerald has cured the borrowing base deficiency under the facility, and the borrowing base under the facility is currently $113M, with approximately $111M currently outstanding. However, notwithstanding this cure, the company remains in default under the facility based on the continuing covenant defaults, and there is no credit available under the facility. So long as one or more events of default are continuing, the company's lenders may exercise a number of remedies including acceleration of the debt and the sale of collateral, the company noted. The exercise of those remedies may have a material adverse effect on the liquidity, financial condition and results of operations of the company, and, because its liquidity position continues to deteriorate, the company may still become bankrupt or insolvent.
12:44 EDTEOXEmerald Oil trading halted, pending news
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February 1, 2016
18:05 EDTEOXEmerald Oil negotiating borrowing base deficiency with lending group
Emerald Oil is continuing to negotiate with the lending group associated with its revolving credit facility to cure the outstanding borrowing base deficiency. On January 14, the company made a presentation to the lending group regarding a possible cure to the borrowing base deficiency, and the company expects to receive a response in the near future. For the time being, the company has elected not to extend the forbearance agreement that expired on January 29, but will continue to evaluate the merits of such an extension. Emerald has engaged legal advisor Kirkland & Ellis, who will join financial advisor Opportune LLP and investment banker Intrepid Partners, LLC, to advise management and the board of directors on lender negotiations and capital structure options.

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