Daily News: August 25, 2016

Westpac Extends $15MM Bengal Energy Facility

Bengal Energy has successfully negotiated an extension of its secured credit facility with Westpac Institutional Bank. The revised facility has been extended to December 31, 2018 and provides a borrowing base of $15 million of which $12.5 million is currently drawn.

The Westpac 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 Westpac facility is not further extended, the borrowing base is scheduled to be reduced to $10 million on December 31, 2017, $5 million on June 30, 2018 and to nil on December 31, 2018.

Along with the extension of its credit facility, Bengal will initiate a program to hedge approximately 134,000 barrels of crude oil from July 2017 to December 2018.

“This extension demonstrates both the company’s ability to extend and grow its credit facility and 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. “We are also pleased with the financial flexibility the extension affords Bengal, which provides sufficient liquidity to meet our near-term plans and finance the ongoing Cuisinier light oil drilling program.”

Alberta-based Bengal Energy is an international oil and gas exploration and production company with producing and prospective light oil-weighted assets in Australia.