BNK Announces AGM Results and Operations Update
CAMARILLO, CA, June 5, 2014 /PRNewswire/ - BNK Petroleum Inc. (the "Company" or "BNK") (TSX: BKX) announces that the seven director nominees listed in the Company's management information circular dated April 29, 2014 were re-elected at the annual general meeting of shareholders of the Company held earlier today. Detailed results are set out below:
|Director Nominee||Votes For||% For||Votes Withheld||%Withheld|
|General Wesley Clark (retired)||69,320,677||99.53%||330,403||0.47%|
Shareholders also re-appointed KPMG LLP, Chartered Accountants as the auditor of the Company and re-approved the Company's Stock Option Plan. Additional details will be provided in a Report of Voting Results to be filed on SEDAR.
The Company has successfully placed effective proppant concentrations in 9 stages in its Gapowo B-1 horizontal well and is currently on day 5 of a restricted rate flow back of the fracture stimulation fluid. The Company anticipates being able to provide an assessment of the initial production rate within the next three weeks, depending on the rate of recovery of the stimulation fluids.
The Company originally planned an initial fracture stimulation of up to 10 stages in the latter third of the lateral. This initial program was expanded to the entire lateral because the Company believed that not enough proppant was placed in this section to effectively stimulate it. The frac design was continually optimized in each stage and while proppant was placed in 14 stages the Company considers 9 of the stages to have been effectively stimulated.
Wolf Regener, President and Chief Executive Officer commented, "We are encouraged by the early flowback performance and pressures encountered. While it is too early to draw any conclusions, we look forward to the next few weeks where we will hopefully see gas producing from these Polish shales."
The Company also announces that Saponis Investments Sp. z o.o has received approval of a concession amendment to the Slupsk concession that includes a four year extension of the concession and extends the deadline to drill the next well. The Company holds a 57.04% interest in Saponis.
Oklahoma - Tishomingo Field
The Company has begun drilling the Wiggins 11-2H well. The Wiggins 11-2H is the first of three Caney formation wells currently planned in sections directly adjacent to the Company's producing Wiggins 12-8H and Barnes 7-2H wells, both of which continue to outperform management's expectations. The Leila 31-2H well, which was fracture stimulated in late April, had an initial production rate of 180 barrels of oil equivalent per day and is currently producing about 155 barrels of oil equivalent per day, 80% of which is oil. This well is significantly shallower, and production data indicates lower gas to oil ratio and thus less reservoir energy, than the Company's other producing wells. Production data from the well will be analysed to determine an alternative fracture stimulation technique to accelerate recovery of stimulation fluid and achieve higher production rates before any offsetting wells are drilled in this small area of the field.
The Company is making progress on obtaining a reserve based borrowing facility and expects to be able to provide an update by the end of June. Additional drilling plans for 2014 will be disclosed once the borrowing facility is in place.
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, Poland and Spain. 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.
Caution Regarding Forward-Looking Information
Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including statements regarding Caney wells and Gapowo B-1 well development, including plans, anticipated results and timing, a proposed reserves based loan facility and the prospectiveness of the Company's properties. Forward-looking information is based on plans and estimates of management and interpretations of exploration information by the Company's exploration team at the date the information is provided and is subject to several factors and assumptions of management, including that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, that anticipated results and estimated costs will be consistent with managements' expectations, that new stimulation techniques will be successful, that the Company's geological analyses are accurate, that required regulatory approvals will be available when required, that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays or labor or contract disputes or shortages are encountered, that the development plans of the Company and its co-venturers will not change, that the demand for oil and gas will be sustained, that the Company will continue to be able to access sufficient capital through financings, farm-ins or other participation arrangements to maintain its projects and carry out its plans, that the proposed reserves based loan facility will be completed and that global economic conditions will not deteriorate in a manner that has an adverse impact on the Company's business, its ability to advance its business strategy and the industry as a whole.
Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions on which such forward looking information is based vary or prove to be invalid, including that anticipated results and estimated costs will not be consistent with managements' expectations, new completion techniques proving to be unsuccessful, the Company's geological analyses proving to be inaccurate, the Company or its subsidiaries is not able for any reason to obtain and provide the information necessary to secure required approvals or that required regulatory approvals are otherwise not available when required, that unexpected geological results are encountered, that equipment failures, permitting delays or labor or contract disputes or shortages are encountered, that completion techniques require further optimization, that production rates do not match the Company's assumptions, that very low or no production rates are achieved, that the Company is unable to access required capital, that the proposed reserves based loan facility is not completed, that occurrences such as those that are assumed will not occur, do in fact occur, and those conditions that are assumed will continue or improve, do not continue or improve, and the other risks and uncertainties applicable to exploration and development activities and the Company's business as set forth in the Company's management discussion and analysis and its annual information form, both of which are available for viewing under the Company's profile at www.sedar.com, any of which could result in delays, cessation in planned work or loss of one or more concessions and have an adverse effect on the Company and its financial condition. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
BOEs/boes (barrels of oil equivalent) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This news release contains peak and initial production rates and other short-term production rates. Readers are cautioned that initial production rates are not necessarily indicative of long-term performance or of ultimate recovery.
SOURCE BNK Petroleum Inc.