Los Angeles Business Journal

BNK Shares Rocket on Oil Field Sale

By Howard Fine Monday, March 18, 2013

Shares of Camarillo oil and natural gas producer BNK Petroleum soared Monday after the company announced it had reached a deal to sell property in Oklahoma to a unit of Exxon Mobil Corp. for $148 million.

The deal, reached Sunday with Exxon unit XTO Energy Inc., involves the sale of most of the assets of the Tishomingo oil field in the Woodford shale formation in southeastern Oklahoma.

“We are very pleased to announce this transaction, which is the culmination of the company’s efforts to maximize the value of our Woodford shale gas assets,” Wolf Regener, BNK chief executive, said in a statement.

Proceeds of the sale will go toward development of oil and natural gas production in the remaining tracts of the Tishomingo field, to the company’s ongoing exploration efforts in Europe and to strengthen its credit facility.

The deal is slated to close in late April, pending approvals from both companies’ boards and regulatory agencies.

Shares of BNK Petroleum soared 43 percent on heavy trading to close at 80 cents a share on the Toronto Stock Exchange.