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BNK Petroleum Inc. Announces New Senior Credit Facility and Operations Update
CAMARILLO, CA , July 30, 2014 /CNW/ - BNK Petroleum Inc. (the " Company ") (TSX: BK...
About this update from Kolibri Global Energy Inc
[{"type":"text","content":"\n\n\nCAMARILLO, CA, July 30, 2014 /CNW/ - BNK Petroleum Inc. (the \"Company\") (TSX: BKX) is pleased to announce that its indirect wholly owned\n subsidiary BNK Petroleum (US) Inc. (\"BNK US\") has obtained a new\n US$100,000,000 credit facility (\"new facility\") from Morgan Stanley\n Capital Group Inc. (\"MSCGI\"). The initial commitment amount of the new\n reserve-based facility is US$15,900,000.\n\n\nThe proceeds from the new facility are intended to fund drilling of\n Caney shale oil wells in the Tishomingo field in Oklahoma. The new\n facility will bear interest at a per annum rate equal to then three\n month LIBOR plus an applicable margin ranging from 2% to 7% based on\n the ratio of outstanding borrowings to present value of proved\n developed producing reserves discounted at 9% (\"PDP PV9\"). The facility\n provides for interest only payments until the July 2018 maturity date. \n Additional commitment amounts will be subject to new reserve\n evaluations.\n\n\nCommenting on the new facility, Wolf Regener, President and CEO said \"We\n are pleased to once again be working with MSCGI, and appreciate their\n shared belief in the potential of our assets.  This facility has been\n structured to grow with our future cash flow needs and to expand our\n planned drilling program beyond the 3 Caney wells previously\n announced.  Our intention is to continue our Caney drilling program\n throughout 2014 and 2015.\"\n\n\nOklahoma - Tishomingo Field\n\n\nThe Company has completed drilling the Wiggins 11-2H well (93.4% working\n interest) with a 5,050 foot treatable lateral section.  The Wiggins\n 11-2H, the first of three planned Caney formation wells previously\n announced, was drilled vertically, had an extensive suite of logs run,\n was subsequently plugged back and horizontally directionally drilled.\n This lateral was placed in what the Company believes is the most\n productive stratigraphic portion of the Caney, based on the analysis of\n previous well results and the pilot hole. The fracture stimulation of\n the well is expected to begin within the next two weeks.  The drilling\n rig is moving to the Hartgraves 1-5H location and is expected to begin\n drilling within the week.  The Hartgraves 1-5H well (100% working\n interest) is expected to be drilled in less than 30 days as it will n...