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BNK Petroleum Inc. reported that Morgan Stanley Capital Group Inc. (MSCGI) has increased its commitment amount under the credit facility announced by the Company on July 30, 2014 from $15,900,000 to $24,400,000 . The other terms of the US$100,000,000 facility remain the same.
The facility bears interest at a per annum rate equal to then three month LIBOR plus an applicable margin ranging from 2% to 7% based on a number of factors including the ratio of outstanding borrowings to a calculated borrowing base level and individual well value concentration. The facility provides for interest only payments until the July 2018 maturity date. The proceeds from the facility are intended to fund drilling and completion of Caney shale oil wells in the Tishomingo field in Oklahoma.
Wolf Regener , President and CEO said "We are pleased that MSCGI has provided us with this increase during these challenging times in the oil and gas business. We appreciate that MSCGI shares our belief in the current and potential value of our Tishomingo field asset."
The Company also reports that since the beginning of the year discretionary expenses have been scaled back, cost reduction measures were initiated, and operations have been further streamlined.