BNK Petroleum Inc. announces operations update
CAMARILLO, CA, July 18, 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, through its indirect wholly owned subsidiary BNK Petroleum (US) Inc., as well as an update on its Polish operations.
The previously announced fracture stimulation of the (Caney) Barnes 6-3H well was completed and the well is currently flowing back fracture stimulation fluid. While only 11% of the stimulation fluid has been recovered to date, the well has begun producing oil. The oil rates and cuts have been increasing daily and yesterday the well made over 120 BOPD. The gas lift mechanism in place is being optimized to increase the flowback rates from the well. The Company anticipates that it will take another 2 to 3 weeks before enough stimulation fluid has been recovered to allow the true initial production rate to be determined. As a comparison, the Barnes 6-2H Caney well drilled by the Company in 2012 did not begin producing any oil until 23% of the stimulation fluid had been recovered.
At the Dunn 2-2H Caney well the rig was released on July 5 and the well is currently being fracture stimulated. It is anticipated that this will be finished within the next week after which flowback will be started. The Company anticipates that it will be approximately 4 to 6 weeks before results will be available. The drilling rig has since moved to the next Caney well location, the Hartgraves 5-3H, with spud anticipated within the next 24 hours.
The Company has approximately a 100% working interest in each of the three Caney wells referred to above. As a result of the Company's recent operations, the Company's net acreage in the Caney formation in the Tishomingo Field has increased from approximately 12,200 acres to 13,400 acres.
In Poland, the government has approved a new ordinance which streamlines the permitting process to drill wells as deep as 5,000 meters. The ordinance is expected to be put into effect in the next two weeks. Once the ordinance is in place, the Company will apply to the Ministry of the Environment for the concession modification which would allow the drilling of the Gapowo horizontal re-entry as well as all other vertical wells scheduled in its Concession commitments.
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 outside of North America. 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 development and a concession modification application in Poland. 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 that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, 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 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 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 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.
SOURCE BNK Petroleum Inc.