BNK PETROLEUM INC. ANNOUNCES COMPLETION OF C$14.0 MILLION FINANCING
BNK Petroleum Inc. (BKX.T) has completed its previously announced short form prospectus offering of common shares of the company through a syndicate of agents co-led by GMP FirstEnergy and Haywood Securities Inc. and including Macquarie Capital Markets Canada Ltd.
Pursuant to the offering, the company issued 70 million shares at a price of 20 cents per share for gross proceeds of $14-million. The company intends to use the net proceeds to finance exploration and development of its Tishomingo field, located in Oklahoma, United States, and for general corporate purposes.
Wolf Regener, president and chief executive officer of BNK, commented: "With the closing of this offering, which was increased by more than 25% due to strong support from existing shareholders as well as new investors, we are moving ahead with a drilling program that will take advantage of the current low cost environment. The location of our proposed wellsites offset some of our best performing wells, in a geologically comparable area. We expect our drilling program to increase cash flow while at the same time proving up additional reserves.
"The preparation of our first location is almost complete, we are currently evaluating bids for a drilling rig and will select a vendor shortly. We expect to provide a further update when we announce our third quarter results in early November."
Directors and senior officers of the Company purchased a total of 4,680,000 Shares in the Offering. Accordingly, the Offering constituted to that extent a "related party transaction" under Multilateral Instrument 61-101 ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 as neither the fair market value of any shares issued to or the consideration paid by such persons exceeds 25% of the Company's market capitalization. The Company did not file a material change report more than 21 days before the expected closing of the Offering as the details of the Offering and the participation therein by related parties of the Company were not settled until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.
About BNK Petroleum Inc.
BNK Petroleum Inc. is an international oil and gas exploration and production company focused on finding and exploiting large, predominately unconventional oil and gas resource plays. Through various affiliates and subsidiaries, the Company owns and operates shale oil and gas properties and concessions in the United States. Additionally the Company is utilizing its technical and operational expertise to identify and acquire additional unconventional projects. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.