Voyager Oil & Gas (VOG) Closes Emerald Oil Acquisition, Enters New Facility

July 27, 2012 6:56 AM EDT
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Voyager Oil & Gas, Inc. (AMEX: VOG) announces the closing of the previously announced acquisition of Emerald Oil, Inc. and an increase in its credit facility with Macquarie Bank Ltd.

Completes Acquisition of Emerald Oil

Voyager completed the acquisition of Emerald Oil, a wholly owned subsidiary of Emerald Oil & Gas NL (ASX: EMR) ("Emerald Australia"), on July 26, 2012. Voyager issued 19.9% of Voyager common stock (11.6 million unregistered shares) to Emerald Australia. Additionally, as part of this transaction, Emerald Oil will retain $20.2 million in obligations, consisting of $17.7 million of subsidiary level indebtedness and $2.5 million of payables to Emerald Australia.

Increase in Availability of Credit Facility

Concurrent with the closing of the acquisition, Voyager entered into an amended and restated credit agreement with Macquarie Bank expanding Voyager's total availability and increasing the outstanding balance on its existing credit facility. Upon closing, Voyager will have $15 million of debt outstanding on a new third tranche at an initial rate of 9% above the applicable London Interbank Borrowing Rate (LIBOR), with the potential to draw up to a maximum of $20 million. The initial $15 million in loan proceeds have been used to fund existing development activities.

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