Emerge Oil & Gas Inc.

Emerge Oil & Gas Inc.

September 30, 2011 17:09 ET

Emerge Announces Closing of Asset Divestiture and Reaffirmed Borrowing Base

CALGARY, ALBERTA--(Marketwire - Sept. 30, 2011) - Emerge Oil & Gas Inc. ("Emerge" or the "Company") (TSX:EME) is pleased to announce that today it successfully closed the divestiture of its crude oil and emulsion processing facility near Lloydminster, Saskatchewan to Secure Energy Services Inc., as detailed in the Company's September 12, 2011 news release. The cash proceeds of $18.0 million ($17.7 million net after estimated closing expenses) have been applied to reduce to the Company's outstanding bank indebtedness.

Together with the above asset divestiture, Emerge also recently completed its regularly scheduled semi-annual borrowing base review with its lenders. Despite the asset divestiture, the Company's lenders have reaffirmed Emerge's borrowing base under its syndicated credit facilities at $75.0 million (unchanged) until its next formal review which is currently scheduled for February 2012.

About Emerge Oil & Gas Inc.

Emerge is engaged in the acquisition and exploration for and development and production of oil and natural gas in Western Canada. The Company currently operates within two principal areas, namely, the Lloydminster area of west-central Saskatchewan and east-central Alberta and the Battlebend/Coronation area of east-central Alberta. Emerge is headquartered in Calgary, Canada.

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