BNK Petroleum Inc. says that the previously announced sale by its indirect wholly owned subsidiary BNK Petroleum (US) Inc. to XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, of its Tishomingo Field, Oklahoma assets other than the Caney and upper Sycamore formations, for US$147.5 million has been closed.

The indebtedness under the Company's credit facility has been paid down to $100,000 with the proceeds from the sale, the Company's hedging positions have been closed and the balance of the $147.5 million sale price less an approximately $400,000 downward price adjustment, has been received by the Company. The Company's credit facility remains in place with the intent of creating future borrowing capacity from reserves associated with any successful Caney / Upper Sycamore wells in the Tishomingo Field.

Tags: BNK Petroleum