CALGARY, Oct. 14 /CNW/ - BNK Petroleum Inc. (the Company)/(TSX: BKX) is
pleased to announce that it has closed its previously announced US $30 million
credit facilities (Capital One Facilities) with the Energy Banking division of
Capital One, N.A. through its wholly owned subsidiary BNK Petroleum (US) Inc.
The Facility A is a senior revolving credit facility secured by a
US $23 million certificate of deposit which was funded by a loan from Bankers
Petroleum Ltd. (Bankers, TSX: BNK) pursuant to a subordinated loan agreement
(the Subordinated Loan) between Bankers and the Company. The Facility B is a
US $50 million senior secured revolving credit facility subject to a borrowing
base and secured by the Company's oil and gas properties in Carter and
Johnston counties, Oklahoma. The initial borrowing base was determined as
US $7 million. The borrowing base will be determined at least semi-annually on
April 1 and October 1. Any increase in the borrowing base will result in the
release of all or a part of the US $23 million cash deposit on a dollar for
dollar basis and the reduction of the Facility A in an amount equal to the
borrowing base increase. The amount available under Facility B will then be
increased to the new borrowing base.
The Facility A bears interest at 1% over the interest rate paid on the
underlying deposit. The Facility B bears interest at US prime rate plus a
margin which ranges from 0 basis points (bps) to 25 bps based on the facility
usage. In addition the Company pays commitment fees ranging from 25 bps to
50 bps on the unutilized portion of the Facility B. The Company also pays a
100 bps facility fee on the initial borrowing base and 50 bps on any
subsequent increase in the borrowing base.
The Capital One Facilities have no scheduled repayment terms and mature
in three years from closing unless terminated earlier by the Company without
The Company intends to use the proceeds from the Capital One Facilities
in the continued development of its Tishomingo Field in Ardmore County,
Oklahoma and general working capital purposes.
BNK also is pleased to announce that the NGPL meter upgrade has been
completed and production from the shut in wells has been restored.
About BNK Petroleum Inc.
BNK Petroleum Inc. is a California based oil and gas exploration and
production company focused on finding and exploiting large oil and gas
resource plays. The Company holds an average of 50% interest in the Tishomingo
gas field in Oklahoma and varied interests in three other areas in the
Northern and Central regions of the United States, where it is currently
pursuing the exploration, development and production of shale and tight sand
gas plays. The Company's shares are traded on the Toronto Stock Exchange under
the stock symbol BKX.
This document contains certain forward looking statements which involve
known and unknown risks, delays and uncertainties not under the company's
control which may cause actual results, performance or achievements of the
company to be materially different from the results, performance or
expectation implied by these forward looking statements.
The TSX does not accept responsibility for the adequacy or accuracy of
this news release.
For further information:
For further information: Wolf Regener, President and Chief Executive
Officer, (805) 484-3613, Email: email@example.com; Website: