BILLINGS, Mont., Feb. 13, 2012 (GLOBE NEWSWIRE) -- Voyager Oil & Gas, Inc. (AMEX:VOG) today announced that it has closed on a $150 million credit facility with Macquarie Bank Ltd. The facility will be used to retire existing debt and allow Voyager to accelerate development and production growth in the Williston Basin for the purpose of Bakken and Three Forks well development, production growth and acquisition in the Williston Basin.
"Voyager is excited to partner with Macquarie to establish a conventional credit facility that will enhance the Company's options as we expand our operations in the Williston Basin," said J.R. Reger, Chief Executive Officer of Voyager Oil & Gas. "The structure of this credit relationship provides Voyager significant flexibility to meet its development targets in the coming years and respond to opportunities that we expect will create value for all Voyager stakeholders."
The credit facility, completed on February 10, 2012, is a two-tranche loan secured by all of the Company's oil and gas assets and remaining other real and personal property. The first tranche (Tranche A) has a face amount of $100 million and an initial borrowing base of $15 million. The annual interest cost, which is dependent on the usage of Tranche A and the type of loan selected, is currently 3.25% above the applicable London Interbank Borrowing Rate (LIBOR). The second tranche (Tranche B) provides up to $50 million for certain development and acquisitions and carries annual interest of LIBOR plus 7.5%. Upon completion of Voyager's semi-annual reserve updates, portions of Tranche B may be converted to Tranche A upon the satisfaction of certain conditions. The Company did not issue equity or provide royalty consideration in connection with the Macquarie facility.
"Voyager's ability to access conventional debt financing to fund future growth and replace existing expensive term debt is a sign of the continued growth and evolving maturity of our Company," added Reger. "We look forward to partnering with Macquarie in the coming years as we continue to grow our Company and believe this is one of a number of steps that will allow Voyager to meet its financial objectives in 2012 and beyond."
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About Voyager Oil & Gas
Voyager Oil & Gas, Inc. combines low overhead, organic acreage acquisition and strong joint venture relationships to exploit its oil and gas prospects. Voyager Oil & Gas is an exploration and production company focused on acquiring acreage in prospective natural resource plays across the continental United States. The Company's primary business is focused on properties in North Dakota and Montana targeting the Bakken and Three Forks formations.
For additional information on Voyager Oil & Gas visit the Company's website at: http://www.voyageroil.com
Forward-Looking Statements
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding Voyager's financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Voyager's control) that could cause actual results to differ materially from those set forth in the forward-looking statements. Voyager has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Voyager's control.