Brigham Exploration Co. (Nasdaq: BEXP), Austin, entered into a series of financing agreements to fund its 2000 capex plans and meet working capital obligations. The independent restructed its senior credit facility to provide $14- to $19 million in borrowing availability, amended the terms of its senior subordinated notes to provide for the restructured credit facility and supply additional financial flexibility, and issued $4.5 million of common stock and warrants to purchase common stock in a private placement. These related financing transactions helped Brigham secure $18.5- to $23.5 million in available capital to fund its $20-million 2000 drilling program. Brigham's amended senior credit facility with its existing lenders, Bank of Montreal and Societé Génerale, and a new lender, Shell Capital Inc., provides the company with $70 million in borrowing availability for three years, an increase from the $56 million in availability under the existing facility. If Brigham exceeds certain asset value and interest coverage tests in the second or third quarters of 2000, the total borrowing availability under this credit facility will increase to $75 million. equity placement was based on the average market price of Brigham common stock during a 20 trading day period prior to issuance. "Despite the recent improvements in market prices for crude oil and natural gas, capital available for investment in E&P firms remains a challenge," said Curtis Harrell, Brigham chief financial officer. Mannix Oil Co. Inc. signed a $40-million production loan facility with Shell Capital Inc. The privately held Tulsa independent will use the credit line to develop its extensive coalbed methane play in the Arkoma Basin of east-central Oklahoma. Cosco Capital Management LLC of New York advised Mannix in negotiating and closing the facility. Esenjay Exploration Inc. (Nasdaq: ESNJ), Houston, closed a $29-million credit facility with Deutsche Bank AG's New York branch. The initial availability is $21 million, with a borrowing base adjustment scheduled for the second quarter. The independent producer believes that its $18-million drilling program (part of a $26-million capital budget) for 2000 can lead to rapid reserve growth and subsequent increased availability under the credit line's terms. It used part of the available proceeds to retire $15.8 million in debt with Bank of America and Duke Energy Financial Services Inc. That obligation included $11 million as the current portion of long-term debt. The debt currently drawn under the new facility will now all be classified as long term debt.
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