A large non-operating participant in the Bakken Shale, Northern Oil and Gas Inc., in response to its mid-year credit facility redetermination, is increasing its borrowing base from $300 million to $350 million to help fund its capex program.
The revolving credit facility was also amended to expand the group of lenders by adding The Bank of Nova Scotia and ING Capital.
Michael Reger, CEO, commented, “We continue to see high levels of drilling and completion activity in the Williston Basin, and our significant borrowing capacity under our revolving credit facility positions us well to continue to grow and execute on our business plan.”
Northern has participated in more than 1,100 Bakken or Three Forks wells since 2007 and controls approximately 180,000 net mineral acres.
“The added liquidity provides NOG ample capital to fund its capex program, which takes into account higher than estimated well costs in the Bakken,” said Global Hunter Securities in a note to investors Tuesday morning.
The Wayzata, Minnesota-based oil and gas exploration and production company currently has drawn down $68 million under its credit facility. At the end of 2Q12, the company had $25 million in cash. Its 2012 drilling capex budget stands at $387 million, with $284 million already being apportioned in the first half of 2012.
The next redetermination of the borrowing base is scheduled for April 1, 2013.