Emerald Oil, Inc. (NYSE MKT: EOX) (“Emerald” or the “Company”) today announced a change in senior management and updated production and CAPEX guidance for 2015.

Senior Management Change
The Board of Directors has appointed Mike Dickinson to the position of Chief Operating Officer, effective January 1, 2015. Mr. Dickinson will be replacing David Veltri, who resigned from his position as an officer of the Company.

Mr. Dickinson has 20 years of experience in the oil and natural gas industry, during which he has managed operations in six basins across the U.S. Mr. Dickinson held operations and engineering positions at Noble Energy for the past 10 years and most recently served as the Director of Operations of the DJ Basin. He began his career with Schlumberger and spent 10 years in various roles for operations and completions in the Gulf of Mexico, East Texas, Oklahoma and New Mexico. Mr. Dickinson earned his Bachelor of Science in Chemical Engineering and Petroleum Refining from the Colorado School of Mines.

McAndrew Rudisill the Chief Executive Officer of Emerald stated “We are all excited to have Mike Dickinson join the Emerald team. Mike has many years of large scale unconventional resource development experience with Noble Energy in facilities and infrastructure engineering as well as unconventional reservoir completion design. Mike is a great fit for the next stage of Emerald’s development which will be focused on efficiently managing our large resource base in the Williston Basin. On behalf of our senior management and our Board of Directors, I would like to thank David for the significant role he has played in Emerald’s growth and wish him the best in his future endeavors.”


During the fourth quarter of 2014, Emerald accelerated the process of replacing electric submersible pumps with lower operating cost rod pumps in order to further reduce lease operating expenses in the current commodity price environment. Rod pump change outs were focused on the entirety of Emerald’s acreage. This program was executed en masse rather than prolong the change out into 2015. Due to the additional downtime associated with this one-time installation process, Emerald is reducing its fourth quarter of 2014 average production guidance to 3,300 BOEPD. The 2014 exit rate guidance of 4,600 BOEPD remains unchanged.

Updated 2015 Development Plan

Management has decided to further reduce the 2015 development program given the current commodity price environment. Emerald released two of three operated rigs in the last two weeks. The updated 2015 production and CAPEX guidance is now based upon a variable one rig program in 2015. Emerald plans to drill and complete five wells over the next twelve months. Four of these wells will be spud between now and the end of the first quarter of 2015, and the fifth well will be spud in the second half of 2015. As Emerald has a backlog of permits in hand, additional wells will be added to the 2015 development schedule if commodity prices improve. The one rig will be held on standby during 2015 while it is not drilling. In Low Rider, Emerald has a current inventory of seven wells remaining to be completed over the next three months. Under the variable one rig program Emerald will move into a free cash flow generative position in the second quarter of 2015 in the current oil strip environment and will allocate free cash flow into the acquisition of both Emerald common equity and convertible bonds in the open market and reduction of borrowing base debt.

Updated 2015 Production and CAPEX Guidance

Assumes Emerald’s variable one rig program for 2015.

                                 Previous Boe/d Range   Updated Boe/d Range 
                                  Low End    High End   Low End    High End 
1Q 2015 Average                      4,500      4,800      4,000      4,300 
2Q 2015 Average                      5,400      5,700      4,500      4,800 
3Q 2015 Average                      5,800      6,250      4,300      4,600 
4Q 2015 Average                      6,000      6,400      4,000      4,300 
2015 Average                         5,425      5,800      4,200      4,500 
Year over year average                                                      
 production growth                      50%        60%        25%        34%
                                    2015 Capital Expenditures Range ($mm)   
                                     Previous Range        Updated Range    
                                   Low End   High End    Low End   High End 
2015 Drilling and Completion                                                
 Budget                          $    210.0 $    240.0 $     62.0 $     81.0
2015 Land Budget                 $      5.0 $     20.0 $      1.0 $      5.0
Net Operated Well Count*               22.1       25.2       6.5*       8.5*

*Includes 5 full wells and the completion of 7 previously drilled wells

Convertible Senior Notes

On December 11, 2014, Emerald entered into agreements with two separate parties to convert $21 million of Convertible Senior Notes. Following this transaction, Emerald has $151.5 million of Convertible Senior Notes outstanding.

About Emerald

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.

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