Daily News: September 29, 2017

Westpac Extends Bengal Energy $12MM Facility


Bengal Energy extended its secured credit facility with Westpac Institutional Bank to December 31, 2019. The facility provides a borrowing base of $12.5 million, the full amount of which is currently drawn.

The credit facility derives its borrowing capacity based on the company’s independently evaluated proven reserves profile, which form the basis for this, and potential future, extensions of the facility. In the event that the credit facility is not further extended, the borrowing base is scheduled to be reduced to $10 million on June 30, 2018, $7.5 million on December 31, 2018, $5 million on June 30, 2019 and to nil on December 31, 2019. This would result in principal repayments of $2.5 million on June 30, 2018, $2.5 million on December 31, 2018, $2.5 million on June 20, 2019 and $5 million on December 31, 2019.

Prior to June 30, 2018, Bengal will initiate a program to hedge approximately 85,000 barrels of crude oil from December 2018 to December 2019.

“This extension demonstrates the strong support from our lenders at Westpac as we continue to increase our proven reserves profile,” said Chayan Chakrabarty, Bengal’s president and CEO. “The financial flexibility afforded by the extension provides sufficient liquidity to evaluate near term development and exploration opportunities.”

Bengal Energy is an international junior oil and gas exploration and production company with assets in Australia.