BNK Petroleum Announces Sale of Woodford Assets; Accelerates Drilling in BNK's Caney Formation; Shrs Fell 3.5% Friday


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BNK Petroleum Inc. (BKX.TO), which fell 3.5% Friday, announced that its indirect wholly owned subsidiary BNK Petroleum (US) Inc. has entered into a Purchase and Sale Agreement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation ( XOM ), 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.

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This article appears in: Investing , Commodities

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