BNK Petroleum Inc. announced that the previously announced sale by its indirect wholly owned subsidiary BNK Petroleum (US) Inc. to XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, of its Tishomingo Field, Oklahoma assets other than the Caney and upper Sycamore formations, for $147.5 million has been closed.
The indebtedness under the Company's credit facility has been paid down to $100,000 with the proceeds from the sale, the Company's hedging positions have been closed and the balance of the $147.5 million sale price less an approximately $400,000 downward price adjustment, has been received by the Company. The Company's credit facility remains in place with the intent of creating future borrowing capacity from reserves associated with any successful Caney/Upper Sycamore wells in the Tishomingo Field.
Wolf Regener, president and CEO, stated: "We are pleased to announce the closing of this transaction, which puts us in a strong debt free financial position to advance our ongoing exploration and development efforts in Oklahoma and Europe. The sale was structured to preserve our rights in the relatively undeveloped Caney and Upper Sycamore formations in the Tishomingo Field, which we believe represent a promising opportunity to develop new oil reserves and production in an area in which we have a successful operating history. We now look forward to the results from our next planned Caney/Upper Sycamore wells, one of which is currently being drilled. We are also making progress on obtaining drilling permits in Europe and anticipate being able to drill a lateral out of our Gapowo B-1 well in Poland later this year."
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