Emerald Oil Inc. (EOX) said Oct. 12 it has retained financial and legal advisers following the redetermination of its borrowing base.

The Denver company's borrowing base under its revolving credit facility has been lowered to $120 million from $200 million. The decrease is effective Oct. 6 and has resulted in a deficiency of about $19.6 million.

The previously announced term loan facility was not consummated, and the company proceeded with its regularly scheduled October borrowing base redetermination.

Emerald and its advisors are negotiating with the bank group regarding a repayment schedule and continues to work with a group of second lien term providers for a term debt solution.

Emerald has retained financial adviser Opportune LLP, investment banker Intrepid Partners, LLC, and legal advisers Mayer Brown LLP to advise management and the board of directors on capital structure options.

Emerald focuses on acquiring acreage and developing wells in the Williston Basin of North Dakota and Montana, targeting the Bakken and Three Forks shale oil formations and Pronghorn sand oil formation.