March 17 Oil and gas exploration and production
company BNK Petroleum said on Sunday it had agreed to
sell most of its assets in Oklahoma's Tishomingo Field to Exxon
Mobil Corp for $147.5 million to fund its exploration
program and repay debt.
Output from shale fields in the United States and Canada has
jumped over the last three years thanks to the advent of
drilling methods such as hydraulic fracturing, prompting some
energy companies to sell assets to finance further exploration.
Exxon will acquire BNK's Tishomingo Field assets other than
the Caney and upper Sycamore formations, BNK said in a
statement. The deal is expected to close in late April subject
to the completion of customary conditions, it added.
"If completed, this transaction will provide the company
with sufficient funds to accelerate our planned Caney
development and flexibility to pursue our exciting European
projects on our own or with partners," BNK's chief executive
Wolf Regener said in the statement.
BNK said it also expected to use proceeds from the deal for
the repayment of a credit facility.
Macquarie Capital Markets Canada Ltd advised BNK on the