CAMARILLO, CA, April 25 /PRNewswire/ - BNK Petroleum Inc. (the "Company") (TSX: BKX), announced today that the Lebork S-1 well, on the Slupsk concession in Poland, in which the Company has an indirect 26.69% interest, has been drilled, cased and cemented to its total depth of 3,590 meters. The well was originally drilled to 3,517 meters and 223 meters of whole core were recovered. At that time a full suite of logs were run. After evaluation of the logs it was decided to deepen the well to its final depth of 3,590 meters, after which another full suite of logs were run and 113 sidewall cores were taken over the additional interval drilled.
The whole core and sidewall cores were taken to fully evaluate the physical parameters of the rock. These analyses will provide, among other data: porosity, permeability, total organic carbon, rock eval pyrolysis, thermal maturity, gas composition, micropaleontology, and mechanical properties. During drilling, numerous gas shows were recorded over 285 meters of the Lower Silurian, Ordovician and Cambrian shales. The gas shows consisted of mainly methane gas. The strongest gas shows were in the Cambrian shale though gas shows in the other intervals may have been diminished due to whole coring of the other intervals.
Consistent with projections, the two primary shale target intervals were thicker in the Lebork S-1 well than in the Wytowno #1 well. The Ordovician shale interval in the Lebork S-1 well is approximately 91 meters thick, which is slightly thicker than the 83 meters found in the Wytowno #1 well. The Cambrian shale also thickened to 15 meters from the 9 meters found in the Wytowno #1 well. This provides further support for the Company's hypothesis of an increasing thickness trend that may continue into deeper portions of the basin.
The Company anticipates receiving all core analysis back by the 3rd quarter. Analyses of the sidewall cores from the Wytowno #1 well are still pending. The suite of Schlumberger open hole logs that were run in the Lebork S-1 well will be calibrated using the core data to more precisely evaluate the potential pay sections. The log suite in the Lebork S-1 well currently calculates the highest gas and best properties in the Cambrian shale interval followed by the Ordovician shale interval. The uncalibrated log suites of both wells currently indicate higher gas calculations in the Ordovician interval in the Lebork S-1 well than in the Wytowno #1 well, which may change after the logs are calibrated. During the 3rd quarter it is anticipated that the completion will be designed and the first intervals in each well will be fracture stimulated.
The cost of the Lebork S-1 well at rig release, with casing in the ground and including the additional deepening, sidewall cores and second set of logs is to date approximately US$5.6 million. The current estimated cost of the Lebork S-1 well, before completion, but including all future core analysis work, is US$6.5 million. Despite the unanticipated deepening of the well, the total drilling costs are only US$0.1 million above the original drilling budget. The drilling rig will stay on location until the end of May at which time it will begin mobilizing to the Starogard concession to begin drilling the first well on that concession in mid June.
The Wytowno #1, Lebork S-1 and Starogard wells are being drilled by one of the Company's subsidiaries as Manager for Saponis Investments Sp z o.o.. The Company owns approximately 26.7 per cent of Saponis with remaining ownership with Rohöl-Aufsuchungs Aktiengesellschaft,("RAG") Sorgenia E&P SpA and LNG Energy through its subsidiary. The Company is obliged to pay approximately 6.69 per cent of the drilling costs of these first three wells. The other 20 per cent of the Company's share is paid by RAG and Sorgenia under the terms of the Company's farmout to RAG and Sorgenia. The Company holds 195,000 net acres in the Baltic Basin of Poland through Saponis and a further 880,000 adjacent net acres through another European subsidiary.
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 but not limited to information regarding the Company's current plans and expectations regarding the Wytowno #1 and Lebork S-1 wells, including expected timing of results of core and log analyses, the Company's hypotheses regarding the geology of the basin in which drilling is currently underway, expected timing of commencement of the planned frac programs, commencement of the first well on the Starogard concession and expectations regarding the total cost of the wells. Forward-looking information is based on plans and estimates of management at the date the information is provided and is subject to certain factors and assumptions of management, including 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 may occur 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 Wytowno #1, Lebork S-1 and Starogard wells will change as well as other risks typically associated with joint ventures with third parties and the other risks and uncertainties applicable to exploration 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, Germany and Spain. 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.