BNK Petroleum Inc. says that its indirect wholly owned subsidiary BNK Petroleum (US) Inc. (BNK US) has obtained a new US$76,000,000 credit facility (new facility) from Morgan Stanley Capital Group Inc. (MSCGI). The initial commitment amount of the new reserve-based facility is US$61,000,000 with an additional uncommitted amount of US$15,000,000 available at the discretion of MSCGI. A portion of the proceeds from the initial advance under the new facility were used to repay BNK US' existing Senior First Lien Secured Credit Facility, which had a fully drawn borrowing base of US$32,000,000.

After the repayment of the existing facility, the proceeds from the new facility are primarily intended to fund drilling of Sycamore/Caney and Woodford wells in the Tishomingo field. A portion of the proceeds may also be used for general corporate purposes, including the Company's European activities.

Tags: BNK Petroleum