BNK Petroleum Inc. (TSX: BKX) has entered into a Purchase and Sale Agreement with XTO Energy Inc., a subsidiary of Exxon Mobil Corp., for the sale by BNK US of its Tishomingo Field, Oklahoma assets other than the Caney and upper Sycamore formations, for US$147.5 million, subject to customary closing adjustments.
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 ongoing exploration efforts in Europe and for repayment of the company’s credit facility.
Macquarie Capital Markets Canada Ltd. is the lead financial advisor to BNK in connection with the transaction.
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.
