BNK Petroleum Secures $50MM Senior Secured Credit Facility

BNK Petroleum has entered into a letter agreement with Wells Fargo Energy Capital Inc. for a $50 million senior secured advancing line of credit facility which is expected to close in the next few weeks and will replace BNK's existing $7 million facility.

The initial borrowing base under the facility is established as $29.5 million. The facility matures in 24 months from the execution of a credit agreement and bears interest at US base rate plus 3% and includes overriding royalties and net profit interests.

The proceeds from the facility will be used to complete the balance of BNK's wells that have been drilled but not yet fracture stimulated and for working capital.