Northern reaffirms borrowing base at $550M

Northern Oil and Gas Inc.'s (NYSE MKT: NOG) bank syndicate group has reaffirmed and maintained the existing $550 million borrowing base under Northern's revolving credit facility during the semi-annual redetermination period. 

In addition, the bank group agreed to amend certain financial covenants. The 4.0x total debt to EBITDAX covenant was removed and replaced with a secured debt to EBITDAX ratio. The new covenant requires Northern to maintain a ratio of secured debt to EBITDAX of no greater than 2.5 to 1.0.

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

Northern’s core area of focus is in the Williston Basin Bakken/Three Forks shale play in North Dakota and Montana. 

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