EMPIRE PETROLEUM CORP 8-K

What Happened
Empire Petroleum Corp (and its subsidiaries Empire North Dakota LLC, Empire ND Acquisition LLC, and Empire Texas Development LLC) announced amendments to a revolving loan agreement with Equity Bank originally entered Dec 29, 2023. Key moves: the facility’s maximum revolver commitment was increased to $20.0 million (First Amendment, Nov 18, 2024), Empire Texas was added as a borrower and its assets pledged (Second Amendment, June 18, 2025), and the Third Amendment (Dec 29, 2025) extended the final maturity date to December 29, 2028 and included a replacement promissory note, an amended security agreement for Empire Texas, a $50,550 non‑refundable loan extension fee, and a guarantor acknowledgment by the parent company. The facility is guaranteed by Empire Petroleum and secured by liens on substantially all of the borrowers’ assets, including a first‑priority mortgage and a pledge of at least 80% of producing oil, gas and leasehold/mineral interests.

Key Details

• Maximum revolver commitment increased to $20.0 million (per First Amendment).
• Final maturity extended to December 29, 2028 (Third Amendment).
• Interest on borrowings: prime rate + 1.50%, with a floor of 8.50%; quarterly unused-commitment fee applies; prepayment allowed without penalty.
• Security: liens on substantially all borrower assets, first‑priority mortgage lien and pledge of ≥80% of producing oil/gas and leasehold/mineral interests (notably in North Dakota and Montana).
• Third Amendment filed as Exhibit 10 to the Form 8‑K.

Why It Matters
This set of amendments increases the company’s available revolving borrowing capacity and extends the time horizon for that credit, providing more liquidity flexibility through 2028. However, borrowings are secured by substantially all of the borrowers’ assets and producing interests, which increases collateral encumbrances and gives the lender prioritized claims on those assets. Investors should note the interest rate floor (8.50%) and commitment fees affecting borrowing costs, and that the agreement’s terms (including monthly step‑downs and semiannual borrowing base redeterminations) will affect how much the company can borrow over time.