BNK Petroleum has reaffirmed the commitment amount under the company’s credit facility with Morgan Stanley Capital Group (MSCGI) at $24.4 million. The other terms of the $100 million facility remain the same. The company currently has $22.6 million outstanding under the facility with $1.8 million available to utilize.

Wolf Regener, BNK president and CEO said, “We are pleased that MSCGI has reaffirmed our borrowing base during these challenging times in the oil and gas business. The favorable decline rates of our wells, the hedging that we have in place, our cost cutting efforts and the support of MSCGI have allowed us to weather the oil price downturn that the industry has been experiencing. We appreciate MSCGI’s ongoing support and look forward to a long relationship with them in helping us grow.”

The facility bears interest at a per annum rate equal to then three month LIBOR plus an applicable margin ranging from 2% to 7% based on a number of factors including the ratio of outstanding borrowings to a calculated borrowing base level and individual well value concentration. The facility provides for interest only payments until the July 2018 maturity date.

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 in the U.S. and Spain.