CALGARY, July 16 /CNW/ - BNK Petroleum Inc. (TSX: BKX) (the "Company") is pleased to announce that it has closed its previously announced private placement for gross proceeds of $5,100,000. From the net proceeds of the financing, the Company will make a U.S.$500,000 loan repayment to Bankers Petroleum Ltd. ("Bankers") under its subordinated loan agreement with Bankers. In addition, the Company will repay U.S. $1 million of unsecured non-interest bearing loans previously made to the Company by three of its directors and its Chief Executive Officer. The balance of the net proceeds will be used by the Company for general working capital purposes.
All common shares issued pursuant to this financing will be subject to a four month hold period which expires on November 15, 2009.
A new presentation is posted on the Company's website which contains current information on the Company's activities in the Tishomingo field as well as the recently announced concessions in Poland. BNK is continuing to undertake geologic mapping and data acquisitions in other parts of Europe in order to evaluate additional opportunities.
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 including statements regarding the Company's intention to complete the private placement and its expected use of proceeds. Forward-looking information is based on management's expectations regarding, among other things, current and future economic and industry conditions and whether or not the private placement will be fully subscribed, and involves significant known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), risk associated with equipment procurement and equipment failure, risks related to international operations and doing business in foreign jurisdictions, the risk of commodity price and foreign exchange rate fluctuations, risks related to future royalty rate changes and risks and uncertainties associated with securing and maintaining the necessary regulatory approvals and financing to proceed with the continued expansion of our various existing and proposed projects. In addition, the current financial crisis has resulted in severe economic uncertainty and resulting illiquidity in credit and capital markets which increases the risk that actual results will vary from forward-looking expectations and these variations may be material. These risks and uncertainties are described in detail in BNK's Annual Information Form for the year ended December 31, 2008, which is available at www.sedar.com. The Corporation assumes no obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.
The TSX does not accept responsibility for the adequacy or accuracy of this news release