UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 13, 2015 (October 6, 2015)
EMERALD OIL, INC.
(Exact name of registrant as specified in
its charter)
Delaware |
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1-35097 |
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77-0639000 |
(State or other jurisdiction of
incorporation) |
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(Commission File Number) |
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(IRS Employer
Identification No.) |
200 Columbine Street, Suite 500
Denver, CO 80206
(Address of principal executive offices,
including zip code)
(303) 595-5600
(Registrant’s telephone number, including
area code)
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement. |
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On October 6,
2015, the Company received a notice from Wells Fargo Bank, N.A. (the "Administrative Agent") under its Amended
and Restated Credit Agreement, dated as of May 1, 2014 (the "Credit Facility"), by and among the Company, the
Administrative Agent, and the lenders party thereto, that, effective as of October 6, 2015, the borrowing base under the Credit
Facility has been decreased to $120 million as part of the Company's regularly scheduled semi-annual redetermination by its lenders.
The decrease in the Company's borrowing base under the Credit Facility resulted in a deficiency of approximately $19.6 million.
The new $120 million borrowing base will be in effect until the Company's next borrowing base redetermination for the Credit Facility.
Item 7.01. |
Regulation FD Disclosure. |
On October 12, 2015, the Company issued
a press release titled “Emerald Oil Announces Redetermination of its Borrowing Base.” The press release is attached
hereto as Exhibit 99.1 to this Current Report on Form 8-K.
The information
included in this Current Report on Form 8-K under Item 7.01 and Exhibit 99.1 is being furnished and shall not be deemed "filed"
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject
to liabilities of that Section, unless the registrant specifically states that the information is to be considered "filed"
under the Exchange Act or incorporates it by reference into a filing under the Exchange Act or the Securities Act of 1933, as amended.
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Item 9.01. |
Financial Statements and Exhibits. |
(d) Exhibits.
The following exhibits are filed in accordance with the provisions
of Item 601 of Regulation S-K:
Exhibit No. |
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Description |
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99.1 |
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Press Release of Emerald Oil, Inc., dated October 12, 2015 titled “Emerald Oil Announces Redetermination of its Borrowing Base.” |
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Company has duly caused this report on Form 8-K to be signed on its behalf by the undersigned
hereunto duly authorized.
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EMERALD OIL, INC. |
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Date: October 13, 2015 |
By: |
/s/ Ryan Smith |
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Ryan Smith |
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Chief Financial Officer |
EXHIBIT INDEX
Exhibit No. |
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Description |
99.1 |
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Press Release of Emerald Oil, Inc., dated October 12, 2015 titled “Emerald Oil Announces Redetermination of its Borrowing Base.” |
Exhibit 99.1
Emerald Oil Announces Redetermination
of its Borrowing Base
DENVER, CO – October 12, 2015 --- Emerald
Oil, Inc. (NYSE MKT: EOX) (“Emerald” or the “Company”) today announced that, effective as of
October 6, 2015, the borrowing base under its revolving credit facility has been decreased from $200 million to $120 million
as part of the Company’s regularly scheduled semi-annual redetermination by its lenders. The previously announced term
loan facility was not consummated, and the Company proceeded with its regularly scheduled October borrowing base
redetermination. The decrease in the borrowing base has resulted in a deficiency of approximately $19.6 million. Emerald and
its advisors are negotiating with the bank group regarding a repayment schedule and continues to work with a group of second
lien term providers for a term debt solution.
Emerald has retained financial advisor Opportune LLP, investment
banker Intrepid Partners, LLC, and legal advisors Mayer Brown LLP to advise management and the board of directors on capital structure
options.
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.
Forward-Looking Statements
This press release may include “forward-looking
statements” within the meaning of the securities laws. All statements other than statements of historical facts included
herein may constitute forward-looking statements. Forward-looking statements in this document may include statements regarding
the Company’s expectations regarding the Company’s operational, exploration and development plans; expectations regarding
the nature and amount of the Company’s reserves; and expectations regarding production, revenues, cash flows and recoveries.
When used in this press release, the words "will," "potential," "believe," "estimate,"
"intend," "expect," "may," "should," "anticipate," "could," "plan,"
"predict," "project," "profile," "model," or their negatives, other similar expressions
or the statements that include those words, are intended to identify forward-looking statements, although not all forward-looking
statements contain such identifying words. Such statements are subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed
by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to,
fluctuations in oil and natural gas prices, uncertainties inherent in estimating quantities of oil and natural gas reserves and
projecting future rates of production and timing of development activities, competition, operating risks, acquisition risks, liquidity
and capital requirements, the effects of governmental regulation, adverse changes in the market for the Company’s oil and
natural gas production, dependence upon third-party vendors, and other risks detailed in the Company’s periodic report filings
with the Securities and Exchange Commission.
Corporate Contact:
Emerald Oil, Inc.
Mitch Ayer
Vice President - Finance & Investor Relations
(303) 595-5600
info@emeraldoil.com
www.emeraldoil.com