BNK Petroleum gets $75 million five-year reserve-based loan facility

By Wendy Van Sickle

Columbus, Ohio, June 14 – BNK Petroleum Inc. said indirect wholly owned subsidiary BNK Petroleum (US) Inc. obtained a $75 million five-year reserve-based credit facility from BOK Financial with an initial commitment of $25 million.

Interest on the loans is calculated based on usage under two separate tranches, according to a company press release.

The first tranche, which will be $20 million of the initial commitment, will bear interest of Libor plus 300 basis points to 400 bps.

The second tranche of $5 million of the initial commitment will bear interest of Libor plus 600 bps.

The facility provides for interest-only payments until maturity, the release noted.

Proceeds will be used to further develop the company’s Tishomingo field in Oklahoma.

“The improved credit facility supports our growth initiatives and, compared to our previous facility, provides us with a lower interest rate that saves us over $650,000 a year assuming the initial commitment amount is fully drawn, and extends the maturity date by four years to June 2022,” Wolf Regener, president and chief executive officer, said in the press release.

“We look forward to a long and mutually beneficial relationship with BOKF. We are also looking forward to fracking our two previously drilled wells, to quickly increase our production and cash flow which we intend to utilize to accelerate the development of the field.”

BNK is an international oil and gas exploration and production company based in Camarillo, Calif.

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