Emerge Oil & Gas Inc.

September 20, 2010 18:03 ET

Emerge Announces Increase in Revolving Operating Credit Facility Borrowing Base

CALGARY, ALBERTA--(Marketwire - Sept. 20, 2010) - Emerge Oil & Gas Inc. ("Emerge" or the "Company") (TSX:EME) is pleased to announce that the Company's borrowing base under its revolving operating credit facility with its lender has been increased to $50.0 million (from $42.5 million previously) under substantially the same terms and conditions. The increase resulted from our lender's interim review and incorporates production and reserve additions since our last review in May 2010. Combined with the Company's non-revolving acquisition/development credit facility of $10.0 million ($10.0 million previously), Emerge now has $60.0 million of total credit facilities with its lender, the National Bank of Canada.

As of September 1, 2010, Emerge had net debt of approximately $41.0 million. The Company's next regularly scheduled review of its credit facilities with its lender is planned for February 2011.

About Emerge Oil & Gas Inc.

Emerge is engaged in the 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 area of East-Central Alberta. Emerge is headquartered in Calgary, Canada.

Forward-Looking Statements

Certain statements contained in this news release constitute "forward-looking statements" under applicable securities laws. These statements relate to future events or future performance and are based on the Company's current expectations, estimates, projections, assumptions and beliefs. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Accordingly, undue reliance should not be placed on these forward-looking statements. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to the following: timing of the Company's next credit facility review with its lender. All such forward-looking statements involve known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Such risks and uncertainties include, without limitation: risks associated with oil and natural gas exploration, development, exploitation, production, transportation and marketing; general economic conditions in North America and globally; changes in the demand for Emerge's products; volatility in market prices for oil and gas, and in particular heavy oil; unanticipated fluctuations or declines in production; the effects of adverse weather conditions; changes in foreign currency exchange and interest rates; changes in tax or environmental laws, royalty rates or other regulatory matters affecting the Company and its operations; inaccurate estimation of Emerge's oil and natural gas reserves; ability to attract and retain qualified personnel; increased debt levels or debt service requirements; limited, unfavorable or lack of access to capital markets; and the impact of competitors. The forward-looking statements contained in this news release are made as of the date hereof and the Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

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