BOK Financial issued a borrowing base redetermination to BNK Petroleum’s revolving line of credit, lowering the bowering base to $23.5 million.
Concurrent with the redetermination, BNK made a $3 million principal payment on its line of credit, reducing the outstanding amount to $23.5 million, and agreed to make future principal payments to further reduce the borrowing base to $21.0 million by November 2020.
“At an assumed oil price range of $22/bbl to $35/bbl, we expect adjusted funds flow of between $5.7 million and $6.5 million in 2020 due to our strong hedge position and low decline rates on our existing production,” Wolf Regener, president and CEO of BNK Petroleum, said. “The company’s cash on hand, which totaled $3.1 million at December 31, 2019, and its 2020 adjusted funds flow, are expected to fund all of these principal payments to the bank. In addition, BNK has approximately 37 percent of its forecasted oil production hedged at $52.66/bbl for 2021.”
BNK Petroleum is an international oil and gas exploration and production company.
