Bonanza Creek Energy Operating Company, LLC Closes $230 Million Senior Debt Financings; Promotes Steve Wilson to CFO

DENVER, May 12 /PRNewswire/ -- Bonanza Creek Energy Operating Company, LLC

Bonanza Creek Energy Operating Company, LLC ("Bonanza Creek" or the "Company"), today announced that on May 7, 2010 it closed a $200 million Senior Revolving Credit Facility (the "Credit Facility") with BNP Paribas (Administrative Agent and Sole Lead Arranger), Compass Bank and Societe Generale and a $30 million Second Lien Term Loan (the "Term Loan") with D. E. Shaw Direct Capital Portfolios, L.L.C. (Administrative Agent) and Wells Fargo Energy Capital, Inc.  The Credit Facility has an initial borrowing base of $90 million and together with the Term Loan (collectively the "Senior Facilities") the proceeds will be used by the Company to retire the outstanding principal balance under its previous credit facility and to provide liquidity for production and development opportunities.

Rivington Capital Advisors, LLC acted as exclusive financial advisor to Bonanza Creek.

The Company also announced that Steve Wilson has been promoted to Chief Financial Officer.  Mr. Wilson has served as Vice President of Finance−Treasurer for the Company since June 2009. Before joining Bonanza Creek, Mr. Wilson served as Treasurer for Berry Petroleum Company since March 2007. Mr. Wilson also served as Controller and Assistant Controller for Berry Petroleum Company from November 2003 to February 2007. Prior to joining Berry Petroleum, Mr. Wilson served key financial positions in select companies, including the positions of CFO and Controller, and was employed eight years at Price Waterhouse LLP achieving the position of Audit Manager.

Mr. Wilson holds a Bachelor of Science degree in Accounting from Brigham Young University and is a licensed CPA in Oregon.

"The Senior Facilities will expand Bonanza Creek's capital resources to convert our inventory of low risk oil and natural gas liquids rich development projects to cash flow," said Michael R. Starzer, President & Chief Executive Officer.  "We are excited about the Company's exceptional growth potential in our core areas of operation."  Mr. Starzer added, "Steve Wilson has been a great addition to our management team since joining the Company in June 2009.  We look forward to Mr. Wilson serving in this new capacity bringing his experience and expertise to Bonanza Creek as we execute on the growing opportunities before us."

About Bonanza Creek Energy Operating Company, LLC

Bonanza Creek Energy Operating Company, LLC, through its predecessor company, Bonanza Creek Oil Company, LLC, was founded in 1999.  Bonanza Creek is an independent energy company based in Denver, Colorado with regional offices in Bakersfield, California and Houston, Texas.  In 2005, Bonanza Creek Oil Company sold a substantial portion of its assets and through distributions, generated a 12-to-1 return for its owners.  Bonanza Creek Energy Operating Company was formed in May 2006 with the addition of the direct capital unit of the D. E. Shaw group to the Company's investor base.  The Company currently produces 2,210 BOEPD in 4 states, including southern Arkansas, north & north eastern Colorado, central California and central Wyoming.

About D. E. Shaw Direct Capital Portfolios, L.L.C.

The D. E. Shaw group is a global investment and technology development firm with more than 1,500 employees; approximately $22 billion in investment and committed capital as of April 1, 2010; and offices in North America, Europe, the Middle East, and Asia.  The D. E. Shaw group's direct capital unit focuses on providing debt and equity capital to small and midsized businesses in all industry sectors, including energy companies.  

About Rivington Capital Advisors, LLC

Rivington Capital Advisors, LLC is an investment banking boutique specializing in private capital and mergers and acquisition transactions for the small and mid-cap energy sectors.  Founded in 2002, Rivington has successfully closed 55 transactions having a total transaction value exceeding $3.3 billion.

Cautionary Statement

Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly any express or implied statements concerning future financial condition or operating results.  Although Bonanza Creek Energy Operating Company, LLC believes that the expectations reflected herein are reasonable, the matters discussed in this release involve risks, uncertainties, and other factors that may delay, prevent or adversely affect the transaction or its planned activities and operations.  There can be no assurance that such expectations will prove correct.  All forward-looking statements are expressly qualified by this cautionary statement.

SOURCE Bonanza Creek Energy Operating Company, LLC