BNK Closes Debt Financing, Increasing Line to $29.5MM

BNK Petroleum Inc. has closed its previously announced $50 million senior advancing line of credit facility (Facility) with Wells Fargo Energy Capital, Inc.

The Facility, which will replace BNK's existing $7 million credit line, has an initial borrowing base of $29.5 million. The Facility, which is secured by the Company's properties in the Tishomingo Field, Oklahoma, matures in 24 months 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 for working capital and to complete the balance of BNK's wells that have been drilled but not yet fracture stimulated.