Emerald will operate 14 DSUs holding approximately 66% of its net acreage, with non-operated DSUs operated by large US shale operators such as Hunt, Hess, Marathon, Oxy and others. This provides Emerald with the ability to control the drilling program on the majority of its acreage, while participating in wells with some of the most experienced operators in Williston Basin.Emerald currently has no firm drilling obligations, but is now in the process of assessing potential value adding drilling opportunities. Unlike the appraisal wells drilled in Emerald's GRB holdings in Colorado last year, all wells will be oil development wells designed and drilled as long horizontal oil producers completed with multi-stage fracs involving up to 30 individual fracture stimulation treatments along the length of the horizontal well. Individual wells cost approximately $US8 million per well to drill and complete. Debt facility with private US company The acquisition is being funded through a $15 million debt facility from a private US company and provides Emerald with a significant funding platform to proceed with its stated US shale acquisition strategy. Interest is in the form of a small overriding royalty on the Dunn County leases. Term of the loan is 6 months and it is fully secured by Emerald's Dunn Co and Green River Basin assets. It is expected to be repaid with the proceeds of other US funding arrangements. Significant Step in US Shale Strategy Emerald directors consider this acquisition a significant step in the implementation of the Company's US Shale strategy announced in October, 2011. This strategy involves growing EMR shareholder value by establishing it’s wholly owned US subsidiary as an active US shale player, selectively pursuing value accretive shale acquisitions and accessing US capital markets to fund these acquisitions and related drilling programs. Large scale future funding for both acquisitions and development drilling will continue to be sourced in the US through Emerald’s US subsidiary.
About Emerald Oil & Gas NLEmerald Oil & Gas NL (ASX: EMR, EMRO) was listed on the ASX in June 2006. Emerald Oil & Gas NL is a petroleum exploration and production company based in Perth, Australia. The Company holds interests in exploration and production operations in the USA (Colorado, Wyoming, Kentucky and Texas) and offshore Western Australia. Emerald's main focus is its large Green River Basin acreage holding over the Niobrara Continuous Shale Oil accumulation in Colorado and Wyoming. Emerald plans to use its position in the Green River Basin as a foundation on which to build a company focused on unconventional resource plays in the Rocky Mountain region. Statements regarding Emerald’s plans with respect to its petroleum properties are forward-looking statements. There can be no assurance that Emerald’s plans for development of its petroleum properties will proceed as currently expected. There can be no assurance that Emerald will be able to confirm the presence of additional petroleum deposits, that any discovery will prove to be economic or that an oil or gas field will successfully be developed on any of Emerald’s petroleum properties. Competent Persons Statement Information in this report that relates to Hydrocarbon Reserves and or Resources is based on information compiled by Mr Mike Krzus, Chief Executive Officer and Managing Director of Emerald Oil and Gas NL, who has consented to the inclusion of that information in the form and context in which it appears. Mr Krzus has 29 years experience in petroleum engineering and the petroleum industry, both in Australia and internationally. He holds a Bachelor of Science Petroleum Engineering from Tulsa University and a Diploma of Oil and Gas Technology from the British Columbia Institute of Technology About Rodman & Renshaw, LLC Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM) is a holding company with a number of direct and indirect subsidiaries, including Rodman & Renshaw, LLC.
Rodman & Renshaw is a full-service investment bank dedicated to providing corporate finance, strategic advisory and related services to public and private companies across multiple sectors and regions. Rodman also provides research and sales and trading services to institutional investors. Rodman is the leader in the PIPE (private investment in public equity) and RD (registered direct offering) transaction markets. According to Sagient Research Systems, Rodman has been ranked the #1 Placement Agent in terms of the aggregate number of PIPE and RD financing transactions completed every year since 2005.For more information visit Rodman & Renshaw on the Internet at www.rodm.com MEMBER FINRA, SIPC