BNK Petroleum Inc. - Caney and Polish Update
CAMARILLO, CA, Dec. 8, 2013 /PRNewswire/ - BNK Petroleum Inc. (the "Company" or "BNK") (TSX: BKX), is providing an update on its Tishomingo Field, Caney oil shale operations in Oklahoma as well as its Polish shale gas project.
Oklahoma - Tishomingo Field
The Company's fifth Caney well, the Barnes 7-2H, was successfully fracture stimulated in 85 percent of the lateral and, while early in the flowback phase, has averaged approximately 520 barrels a day of oil and 230 barrels of oil equivalent per day (BOEPD) of natural gas and natural gas liquids (NGL's) over the last four days. Despite its shorter completed lateral section, the Barnes 7-2H well has an oil rate comparable to the initial oil rate of the Company's previous well, the Hartgraves 5-3H well. The Barnes 7-2H well is the first well drilled in what the Company believes is a more prolific and thicker oil rich subinterval of the Caney.
The entire 5,039 foot lateral was not fracture stimulated due to a perforation tool getting temporarily stuck in the well after the successful stimulation of 27 stages. The removal of the perforation tool delayed the unrestricted flowback of the well. The Company plans on finishing the stimulation of the last 5 stages following the Wiggins 12-8H stimulation.
Wolf Regener, President and Chief Executive Officer, commented, "We are very pleased with the production results from this well. Our technical team targeted what they believed was a more oil prolific portion of the reservoir and the early flow data has validated that. In the Barnes 7-2H well, approximately 70% of the production is oil versus about 50 percent in our previous Caney wells. These strong oil rates are particularly encouraging considering the shorter lateral and the delays we had in getting this well into production due to the stuck tool."
The Company also successfully finished drilling the Wiggins 12-8H well and plans to begin fracture stimulation of that well in the third week of December. The Wiggins 12-8H well has about 4,100 feet of lateral in the Caney that is planned to be fracture stimulated.
The drilling rig has since been mobilized to the next location and has already begun drilling the Company's next Caney well, the Leila 31-2H well which is expected to take about 30 days.
The Company has approximately 100% working interest in both the Wiggins 12-8H and the Leila 31-2H wells. As a result of the Company's recent operations, the Company's net acreage in the Caney and Upper Sycamore formations in the Tishomingo Field has increased to approximately 14,880 acres.
In Poland, the Company has received the requested concession modification amendment for the Gapowo B-1 well on its Bytow concession. The Company has also now received all the other permits needed to re-enter the Gapowo B-1 well and drill a horizontal lateral in the Ordovician formation. A drilling rig has been contracted, is currently mobilizing to the location, and is expected to start drilling after the first of the year. The well is expected to take about 35 days to drill. The fracture stimulation will follow after the removal of the rig.
The vertical Gapowo B-1 well had encountered over-pressured, gas charged, organic-rich shales in the Lower Silurian and Ordovician intervals. While drilling the vertical well the average and maximum total gas readings were much higher than those seen in the Company's other Baltic Basin wells. The analysis of the log and core data leads the Company to believe that the Lower Silurian and Ordovician shales are highly prospective for shale gas as the shales have good total organic carbon, porosities and permeabilities. The Company's geological work indicates that these characteristics are likely to extend over a significant portion of the Company's Baltic Basin acreage.
The Company also is pleased to announce that Mr. Gary Johnson has accepted the position of Chief Financial Officer and Vice President of the Company, on a permanent basis. Mr. Johnson had previously been appointed Chief Financial Officer on an interim basis.
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 gas properties and concessions in the United States, Poland, Spain and Germany. 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 anticipated results and timing, 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 management's expectations, 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 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 management's expectations, 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 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 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.
SOURCE BNK Petroleum Inc.