Black Ridge Oil & Gas announced that it entered into a $50 million first lien revolving credit facility with Cadence Bank and a $75 million second lien term loan facility with Chambers Energy Management.
The senior credit facility, which will mature August 8, 2016, has an initial availability of $7 million, which was established based on the company’s year-end 2012 proved reserves. This borrowing base is subject to periodic redeterminations based on changes to the company’s reserve base.
The subordinated credit facility has a maximum aggregate principal amount of $75 million and has an initial availability of $25 million. The company expects the availability to increase as it continues to acquire and develop new, high value leaseholds in the heart of the Bakken and Three Forks development fairway. The Subordinated Credit Facility will mature on June 30, 2017.
Black Ridge said KeyBanc Capital Markets served as the company’s financial advisor in connection with the subordinated credit facility.