Dallas, Texas 02/14/2014 (FINANCIALSTRENDS) – The $475 million market capped oil and gas firm Emerald Oil Inc (NYSEMKT:EOX) filed SEC update on 14th February announcing that it has completed the previously announced Williston Basin Acquisitions.
The acquired firm includes currently in production properties of “Bakken and Three Forks” and the still undeveloped oil rich regions of “McKenzie and Williams Counties” in North Dakota. At that time, it was disclosed that the firm would be spending $75.1 million in cash. With the completion of the purchase, the Denver based firm will have a total of 85,000 net acres of property.
The acquired firm consists of close to 20,800 acres of land of which a major part is lying adjacent to the already productive “Emerald’s Low Rider” which is in the McKenzie County of North Dakota. The acquired firm is expected to yield close to 300 barrels of oil equivalent per day as per the current production figures. It consists of a total of 19 “drill spacing units” of which 17 wells have been sunk in the highly prospective low rider area. These wells cover, close to 62 percent of the total oil acreage which is in production.
Emerald Oil Inc (NYSEMKT:EOX) had disclosed that it would be raising close to 50 percent of the required proceeds for the buyout in the form of borrowings which lie unused in its revolving credit arraignment. Rest of the funds would be raised by using its cash on hand and future cash flow. It is appropriate to note here that the oil firm had ended year 2013 with close to $140 million in cash. IT also had accumulated close to $75 million in its revolving credit arrangement. Post the acquisition, the firm would be working towards getting its credit limit raised from its borrowers to reflect its added asset base.