Black Ridge Oil & Gas updates outlook based on current oil prices

MINNETONKA, Minn. -- Black Ridge Oil & Gas, Inc. today provided an update on the Company to address the recent deterioration in oil prices.

Since early November, West Texas Intermediate (WTI) oil prices for the 2016 calendar strip have dropped from nearly $52.00/bbl to recently trade below $40.00/bbl. A price drop of this magnitude would have a $5 million negative impact on the company's 2016 operating income. The significant drop in oil prices also has a material negative impact to the value of the company's collateral, as determined in certain financial covenants related to its debt facilities. As a result, there is significant uncertainty regarding the company's ability to meet the financial covenants with lenders in the current and future quarterly reporting periods. Black Ridge's management and board of directors are assessing strategic alternatives for the company's base assets, including the potential for asset sales.

Ken DeCubellis, CEO, said, "While this price environment has an adverse impact on our base assets, it creates an opportunity for the company to work with capital providers, including our previously announced Joint Venture with Merced Capital, to acquire distressed assets. As an asset manager, Black Ridge would receive a management fee and participate in sharing the value created in an improving commodity price environment. This opportunity is a strategic focus for the company in 2016."