Energia
BNK Petroleum Inc. Announces Borrowing Base Redetermination
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.
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.
Wolf E. Regener , +1 (805) 484-3613, Email: investorrelations@bnkpetroleum.com, Website: www.bnkpetroleum.com