Northern Oil and Gas lifts revolver borrowing base to $400 million

By Marisa Wong

Madison, Wis., April 2 - Northern Oil and Gas, Inc. said it increased the borrowing base under its revolving credit facility to $400 million from $350 million after completing year-end redetermination on March 28.

Northern Oil currently has $139 million of outstanding borrowings under the credit facility.

The next redetermination of the borrowing base is scheduled for Oct. 1.

According to an 8-K filing with the Securities and Exchange Commission, Northern Oil also modified some of the credit agreement's provisions, including a negative covenant limiting the company's ability to make restricted payments.

A carve-out was added to allow the company to make restricted payments in an aggregate amount not exceeding $60 million plus 50% of the company's consolidated net income for the period from Jan. 1 through the company's most recently completed fiscal quarter.

"We appreciate the confidence and support of our 13-bank syndicate," Michael Reger, chairman and chief executive officer, commented in a press release.

"The increased borrowing base enhances our strong liquidity position and allows us to continue to fund our future development from cash flow and this credit facility."

Northern Oil is an exploration and production company based in Wayzata, Minn.

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