Bengal Energy Ltd. has closed its US $25.0 million secured credit facility (the "Facility") with Westpac Institutional Bank. The Facility is secured by the Company's producing assets in the Cuisinier field in Australia's Cooper Basin over a three-year term. In advance of the initial draw, Bengal will initiate a program to hedge approximately 280,000 barrels of oil over the term of the loan.
The Company anticipates the initial draw will occur before October 31, 2014 and will be used to finance Phase 2 of the 2014 Cuisinier drilling program set to commence in November 2014.
The Company will also utilize the Facility to fund the redemption price of the $7.5 million principal amount of the Company's 10% outstanding unsecured non-convertible redeemable notes (the "Notes").