Emerald Oil, Inc. (NYSE MKT: EOX) (the “Company”) announced today that due to the current market environment and associated dilution to existing shareholders, it has elected not to proceed with its previously announced public offering of common stock. As a result of the Company’s election not to proceed with its public offering, the Company will not be taking action to close the previously announced Delaware Basin acquisition.
With the recently completed spring borrowing base redetermination and easing of debt covenants, Emerald will continue developing its Williston Basin leasehold position based upon original plans. With current upper-teens well returns the Company remains committed to completing its 2015 capital expenditures program in a financially conservative manner designed to hold its acreage position while maintaining year-over-year growth in production. The Company reiterates the previously announced 2015 guidance reflecting a $65 million capex budget, of which $42 million has been spent year to date.
Reiterate Prior 2015 Production and CAPEX Guidance
Assumes Emerald’s variable one rig program for 2015 in the Williston Basin.
|Production Range (Boe/d)|
|Low End||High End|
|1Q 2015 Average||4,000||4,300|
|2Q 2015 Average||4,500||4,800|
|3Q 2015 Average||4,300||4,600|
|4Q 2015 Average||4,000||4,300|
|Estimated year over year average production growth||18%||27%|
|CAPEX Range ($mm)|
|Low End||High End|
|2015 Williston Basin Drilling & Completion Budget||$52||$71|
|2015 Land Budget||$1||$5|
|Net Operated Well Count*||6.5*||8.5*|
*Includes 5 drilled and completed wells and the completion of 8 previously drilled wells in the Williston Basin
ABOUT EMERALD OIL, INC.
Emerald is an independent exploration and production operator that is focused on acquiring acreage and developing wells in the Williston Basin of North Dakota and Montana, targeting the Bakken and Three Forks shale oil formations and Pronghorn sand oil formation. Emerald is based in Denver, Colorado. More information about Emerald can be found at www.emeraldoil.com.