Emerald Oil announced that its 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.

According to a related 8-K filing, the lender group was led by Wells Fargo serving as administrative agent.

Emerald said its 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, investment banker Intrepid Partners and legal advisors Mayer Brown to advise management and the board of directors on capital structure options.

Denver-based 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.