BNK Petroleum Inc. Announces Borrowing Base Redetermination

TSX ticker symbol; BKX
OTCQX ticker symbol; BNKPF

CAMARILLO, CA, April 7, 2020 /CNW/ - BNK Petroleum Inc. (the "BNK") (TSX: BKX) announces that its indirect wholly owned subsidiary BNK Petroleum (US) Inc. ("BNK US") has received its bank borrowing base redetermination on its revolving line of credit ("credit facility") from BOK Financial ("BOKF"), which has lowered the borrowing base to $23.5 million. 

Concurrent with the redetermination, BNK made a $3 million principal payment on its line of credit, reducing the outstanding amount to $23.5 million, and has agreed to make future principal payments to further reduce the borrowing base to $21.0 million by November 2020.

Wolf Regener, President and CEO commented. "At an assumed oil price range of $22/bbl to $35/bbl, we expect adjusted funds flow of between $5.7 million and $6.5 million in 2020 due to our strong hedge position and low decline rates on our existing production.  The Company's cash on hand, which totaled $3.1 million at December 31, 2019, and its 2020 adjusted funds flow, are expected to fund all of these principal payments to the bank.  In addition, BNK has approximately 37 percent of its forecasted oil production hedged at $52.66/bbl for 2021."

All figures are in U.S. dollars.

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 and on the OTCQB under the stock symbol BNKPF.

NON-GAAP MEASURES

Adjusted funds flow is not a measure recognized under Canadian generally accepted accounting principles ("GAAP") and does not have any standardized meaning prescribed by GAAP. The Company's non-GAAP measures, including adjusted funds flow, are described and reconciled to the GAAP measures in the Company's management's discussion and analysis which is available under the Company's profile at www.sedar.com.  Adjusted funds flow is calculated as cash from operating activities excluding changes in non-cash operating working capital and interest expense. The Company considers this a key measure as it demonstrates its ability to generate funds from operations necessary for future growth excluding the impact from short-term fluctuations in the collection of accounts receivable and the payment of accounts payable and financing costs.