TSX ticker symbol: BKX
CAMARILLO, CA, March 14 /PRNewswire/ - BNK Petroleum Inc. (the "Company") (TSX: BKX) announces a 31% increase in the estimated net present value of future net revenue (before tax, discounted at 10%) of its Tishomingo shale gas field proved and probable reserves, to US$315 million from US$241 million at 2009 year-end. Proved and probable reserves increased to 39.7 million boe from 37.9 million boe at 2009 year-end, a 5% increase.
Forecast Price Case - Before Tax - discounted at 10%
(as at December 31, 2010)
|Proved Developed Producing||727||593||13,997||11,294||2,956||2,385||4,860||65,183|
|Proved Dev Non-producing||217||176||3,011||2,442||637||517||1,099||13,636|
|Total Proved & Probable||7,571||6,164||109,124||88,740||23,077||18,766||39,720||314,962|
|(1)||Future net revenue is calculated after deduction of forecast royalties, operating expenses, capital expenditures and abandonment costs but before corporate overhead or other indirect costs, including interest and income taxes.|
The NPV increase is principally attributable to the Company's purchase of an overriding royalty interest and net profits interest from it's previous lender last year, increased oil recoveries and higher forecast oil prices which together more than offset the lower forecast natural gas prices.
Sproule Forecast as of January 1, 2011
The second well, Lebork #1 on the Slupsk concession in Poland began drilling on March 11, 2011 and drilling is anticipated to finish around the end of April, 2011. The Company expects to receive the analysis from the sidewall cores taken in the Wytowno #1 well in April, following which the designing of the fracture stimulation program for the Wytowno #1 well will begin. The possibility of achieving project efficiencies by performing back-to-back fracture stimulations on the Lebork #1 and the Wytowno #1 wells is currently being evaluated.
The Wytowno #1 and Lebork #1, wells are being drilled by Saponis Investments Sp z o.o., in which the Company has an indirect 26.67% interest and is Manager.
Explanatory Notes and Caution Regarding Forward-Looking Information
The 2009 and 2010 year-end Tishomingo Field reserves estimates were prepared by MHA Petroleum Consultants, LLC. independent petroleum engineering consultants of Lakewood, Colorado.
Reserves estimates are prepared in accordance with Canadian National Instrument 51-101 using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and the Sproule Oil & Natural Gas Forecast effective January 1, 2011. Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is 90% likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
Unless otherwise stated, reserves refer to reserves of natural gas, natural gas liquids and crude oil expressed in barrels of oil equivalent ("boe"). Certain amounts cited herein have been rounded for presentation purposes.
All references to 'boe' (barrel of oil equivalent) are calculated on the basis of 6 mcf:1 bbl. Readers are cautioned that the conversion used in calculating barrels of oil equivalent is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Furthermore, boes may be misleading if used in isolation. Future net revenues disclosed herein do not represent fair market value.
Forward looking information
Reserves estimates are by their very nature forward-looking. Certain other statements contained in this news release, such as the Company's plans and expectations regarding the work program in Poland also constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management and of the Company's independent qualified reserves evaluator at the date the information is provided and is subject to certain factors and assumptions, including, with respect to the reserves estimates and estimates of net present values of future net revenues, assumptions that reservoirs will respond as anticipated, that pricing assumptions are valid, that funding for development costs will be available when required and at a reasonable cost, that costs of labor, drilling rigs and other equipment will not vary materially from those estimated, that operating, abandonment and other such costs on which calculations are based will be as anticipated, and with respect to all forward-looking statements in this press release, that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays, labor or contract disputes are encountered as well as that the Company's the financial condition and development plans of the Company and its co-venturers will not change. 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 occurrences such as those referred to above are realized and result in delays, or cessation in planned work, and that the Company's financial condition and development plans of the Company or the other participants in the concessions in Poland will change as well as the other risks and uncertainties applicable to oil and gas exploration, development and production activities and to the Company 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 . The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
About BNK Petroleum Inc.
BNK Petroleum Inc. is a U.S. based 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 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.
SOURCE BNK Petroleum Inc.