- Bengal Energy (BNG) announces closing of private placement and debt settlement agreement
- Bengal issued an aggregate of 330,720,000 common shares to Texada
- Proceeds were used to settle the principal amount owing to Westpac and to fund downhole remedial work on two suspended gas wells
- This private placement and the debt settlement agreement will leave Bengal debt-free with cash on hand and cash-generating production operations
- Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia
- Bengal Energy Ltd. (BNG) opened trading at C$0.065 per share
Bengal Energy Ltd. (BNG) is pleased to announce the closing of its non-brokered private placement of common shares to Texada Capital Management Ltd.
Bengal is also pleased to announce the settlement of all indebtedness and liabilities owing by Bengal’s wholly-owned subsidiary Bengal Energy (Australia) Pty Ltd. to Westpac under its secured credit facility.
Under the private placement agreement, Bengal issued an aggregate of 330,720,000 common shares to Texada at the price of CAD$0.05 per share for aggregate gross proceeds of CAD$16,536,000.
C$12,536,000 of the gross proceeds was applied by Bengal to the settlement of the principal amount owing by Bengal Pty to Westpac under the debt settlement agreement.
The additional Gross Proceeds of approximately C$4 million will be used to satisfy current liabilities and to fund downhole remedial work on two suspended gas wells located on its Wareena petroleum lease (PL 114) and associated natural gas pipeline maintenance in the Cooper Basin of Queensland, Australia.
The private placement and debt settlement allow Bengal to address its working capital deficiency and to settle all amounts owing under the facility thereby becoming debt-free with cash on hand and cash-generating production operations benefiting from the recent strength in crude oil pricing.
Chayan Chakrabarty, the President and CEO of Bengal, commented:
“The successful closing of the Debt Settlement transaction and the Private Placement not only results in the company having no debt and the ability to deploy capital into our development and exploration programs over the near term, but it also allows us to continue working to build a viable, sustainable and growing company, for the benefit of all our stakeholders.
On behalf of all of us at Bengal Energy, we thank Texada and its principal Bill Wheeler for their support.”
Bengal Energy Ltd. is an international junior oil and gas exploration and production company with assets in Australia.
Bengal Energy Ltd. (BNG) opened trading at C$0.065 per share.