Morgan Stanley Provides $100MM BNK Petroleum Facility
BNK Petroleum announced its indirect wholly owned subsidiary BNK Petroleum (US) obtained a new $100 million credit facility from Morgan Stanley Capital Group. The initial commitment amount of the new reserve-based facility is $15.9 million.
The proceeds from the new facility are intended to fund drilling of Caney shale oil wells in the Tishomingo field in Oklahoma. The new facility will bear interest at a per annum rate equal to three month LIBOR plus an applicable margin ranging from 2% to 7% based on the ratio of outstanding borrowings to present value of proved developed producing reserves discounted at 9%. The facility provides for interest only payments until the July 2018 maturity date. Additional commitment amounts will be subject to new reserve evaluations.
Wolf Regener, president and CEO, said, “We are pleased to once again be working with MSCGI, and appreciate their shared belief in the potential of our assets. This facility has been structured to grow with our future cash flow needs and to expand our planned drilling program beyond the 3 Caney wells previously announced. Our intention is to continue our Caney drilling program throughout 2014 and 2015.”
BNK Petroleum is an international oil and gas exploration and production company focused on finding and exploiting large, predominately unconventional oil and gas resource plays.
To read the entire press release, click here.