BCEI = Good News

[dan_s]

DENVER, May 22, 2014 - Bonanza Creek Energy, Inc. (BCEI) today announced the Company has entered into a definitive purchase agreement with a privately held company to acquire additional leasehold interests in Weld County, Colorado, in the Wattenberg Field. The Company also announced new 40-acre spacing results in the Niobrara B bench, an agreement to secure dedicated space on the White Cliffs pipeline and an increased borrowing base on its revolving credit facility.

http://finance.yahoo.com/news/bonanza-c ... 02670.html

Marvin Chronister, Bonanza Creek`s interim President and Chief Executive Officer, commented "We are very excited about this acquisition as it nearly doubles our acreage in the Wattenberg Field to more than 70,000 net acres. These assets represent a natural bolt-on that fits with the high priority criteria we seek in all potential acquisitions: predictability, alignment with core areas and competencies, accretive to shareholders and pro forma capital structure that remains within our stated leverage tolerances. We are pleased to offer our stockholders this opportunity for increased exposure to this highly economic basin and improved confidence that we have the development inventory to maintain top tier production growth well into the future."

Bill Cassidy, Bonanza Creek`s Executive Vice President and Chief Financial Officer, added "The cash portion of this transaction will be funded with cash on hand and borrowings under our revolving credit facility which is currently undrawn. Pro forma for this transaction, we expect that our balance sheet will continue to be strong and flexible with net debt-to-EBITDAX remaining below 2.0x. We plan to issue updated guidance to adjust for the impacts of this transaction once the acquisition is closed."

The acquisition features two largely contiguous asset positions to the north and south of and adjacent to the Company`s existing leasehold, which provides opportunities to leverage current infrastructure and our operational expertise in this area. The northern block of acreage which directly offsets the Wells Ranch development area, consists of approximately 25,700 net acres, of which 8,700 net acres are held by production. The southern block of acreage is defined by approximately 8,900 net acres, of which 4,600 net acres are held by production.

The Company believes that the acquired assets would support an estimated 1,700 gross (700 net) 3P locations in the Niobrara B and C Benches and the Codell formation based on initial spacing assumptions of 80 acres in the Niobrara B and C Benches and 160 acres in the Codell. When combined with the Company`s previously disclosed 3P inventory of just over 1,800 gross (1,300 net) locations as of year-end 2013, pro forma 3P locations in the Wattenberg Field total an estimated 3,500 gross (2,000 net)-representing a drilling inventory of 25 years based on current activity levels.