On 13 December, 2013, the Company completed the acquisition of certain producing oil and gas wells and development acreage in the Williston Basin for $20.6m, including net purchase price adjustments of $0.1m. The effective date for the Corral Creek acquisition was 1 October, 2013.
Black Ridge Oil & Gas funded the Corral Creek acquisition with proceeds from its re-determined senior secured credit facility with Cadence Bank, its second lien credit facility with Chambers Energy Capital, and cash on hand. At closing, Cadence increased the Company’s borrowing base from $7.0 million to $18m.
Ken DeCubellis, Black Ridge’s chief executive officer, said: "Closing this transaction marks a key milestone in our Company’s growth plan. We expect to end 2013 with 4.7 net wells in production, which is approximately 100% growth over the net wells in production at year end 2012. The Company also has approximately 1.55 net wells preparing to drill, drilling, or awaiting completion. This robust drilling activity sets the table for continued production growth in 2014."
