Mr. Wolf Regener reports
BNK PETROLEUM INC. ANNOUNCES SALE OF WOODFORD ASSETS; ACCELERATES DRILLING IN BNK'S CANEY FORMATION
BNK Petroleum Inc.'s indirect wholly owned
subsidiary BNK Petroleum (U.S.) Inc. has entered into a
purchase and sale agreement with XTO Energy Inc., a subsidiary
of Exxon Mobil Corp., for the sale by BNK U.S. of its Tishomingo
field, Oklahoma, assets other than the Caney and upper Sycamore
formations, for $147.5-million (U.S.), subject to customary closing
Subject to completion of customary conditions, the transaction is
expected to close in late April. If the transaction is completed, the
proceeds of the sale are expected to be used to accelerate the drilling
of Caney wells in the Tishomingo field, the company's exploration efforts in Europe and for repayment of the company's credit
Wolf Regener BNK's president and chief executive officer, stated: "We are very pleased to
announce this transaction, which is the culmination of the company's
efforts to maximize the value of our Woodford shale gas assets. The
transaction is also structured to preserve our rights in the relatively
undeveloped Caney and upper Sycamore formations in the Tishomingo
field. We believe these intervals represent a promising opportunity
to develop new oil reserves and production, in an area in which we have
a successful operating history. If completed, this transaction will
provide the company with sufficient funds to accelerate our planned
Caney development and flexibility to pursue our exciting European
projects on our own or with partners."
Macquarie Capital Markets Canada Ltd. is the lead financial adviser to
the company in connection with this transaction, and has delivered an
opinion to the company's board of directors that, as of the date hereof
and based upon and subject to the assumptions, limitations and
qualifications set forth in the opinion, the consideration to be
received by the company pursuant to the transaction is fair, from a
financial point of view, to the company.
Update on Caney development
A drilling rig is currently mobilizing to the next planned Caney well,
the Barnes 6-3H well. Once it is rigged up, drilling is expected to
begin immediately. The drilling rig has been contracted for two wells
with the option for two additional wells.
We seek Safe Harbor.
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