Emerald Oil, Inc. has signed a term sheet with respect to a $75 million senior secured second lien term loan facility, and has provided both an ATM and liquidity update.

Debt Financing Update

Emerald has signed a term sheet with a private financial institution to provide a $75 million Term Loan, and the transaction is expected to close by the end of June 2015. The Term Loan will be fully drawn at closing with the proceeds used to repay borrowings under Emerald's credit facility. The Term Loan has a 3 ½ year term and bears interest at LIBOR plus 8.25 percent with a 1 percent LIBOR floor. The Term Loan is secured by a second lien on substantially all of the Company's assets and has a customary hedge adjusted asset based covenant structure.

In conjunction with the transaction, the Company is working with its lending syndicate on both the elimination of the Total Debt/EBITDA covenant and new senior secured debt and interest coverage covenants that will provide ample borrowing base liquidity and room for covenant compliance should current crude oil market conditions persist for a multi-year duration. Emerald expects the covenant amendments to occur concurrent with the closing of the Term Loan.

The term sheet represents indicative terms which are non-binding, and does not represent a commitment (conditional or otherwise) to lend on the part of the private financial institution. The consummation of the transactions contemplated by the term sheet are subject to the satisfaction of due diligence review and other customary closing conditions.

ATM Update

Quarter to date, Emerald received approximately $16.4 million in net proceeds from the issuance of 2,460,045 shares via the ATM. Current shares outstanding are now 7,856,325. Proceeds will be applied to repay borrowings under Emerald's credit facility.

Liquidity Update