NEWS
BNK PETROLEUM INC. ANNOUNCES WYTOWNO DRILLING RESULTS
cnw
TSX ticker symbol: BKX
CAMARILLO, CA, Feb. 15 /CNW/ - BNK Petroleum Inc. (the "Company") (TSX: BKX) announced today that the Wytowno #1 well, on the Slawno
concession in Poland, has been drilled to 3,580 meters and is being
prepared to have casing run and cemented to total depth. During
drilling, numerous gas shows were recorded over 220 meters of the Lower
Silurian, Ordovician and Cambrian shales and a further 450 meters of
gas shows were recorded in the middle and upper Silurian shale. The
strongest gas shows were encountered in the Ordovician shale. The gas
shows consisted of mainly methane, with a small percentage of ethane
and propane.
The Ordovician shale interval in the Wytowno #1 well is approximately 83
meters thick and represents a thicker section than seen in previous
wells drilled in updip, structurally higher positions. This suggests an
increasing thickness trend that may continue into deeper portions of
the basin. Approximately 200 sidewall cores have been 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.
The Company estimates that it will take about 45 days to receive the
results of these analyses from the subcontractors. The suite of
Schlumberger open hole logs that were run in the Wytowno #1 well, will
be calibrated using the data to more precisely calculate the potential
pay sections. The log suite currently calculates the highest gas and
best properties in the Ordovician shale interval. In addition IsoTube
and IsoJar samples were taken which will allow verification of the
thermal maturity.
In early April all data analysis for the completion should be finished
and the fracture stimulation will be designed. The Company anticipates
being able to fracture stimulate the first interval in the Wytowno #1
well and provide results during the second quarter.
At a current estimated cost of $6 million, which includes estimated
costs to run and cement the production casing, the well will be drilled
on budget. Once casing has been run and cemented in the Wytowno #1
well, the rig will mobilize over to the Lebork location, on the Slupsk
concession to immediately begin drilling operations. The Lebork
location has already been completed and all permits are in place. The
Lebork #1 well is located approximately 26 kilometers from Lane
Energy/Conoco's Lebien LE1 well. The Wytowno #1 and Lebork #1 wells are
being drilled by Saponis Investments Sp Z o.o. where the Company is
Manager. The Company owns 26.6 per cent of Saponis, and the rest of
Saponis is owned by Rohol-Aufsuchungs Aktiengesellschaft (RAG),
Sorgenia E&P SpA and by LNG Energy through a subsidiary. The company is
obliged to pay approximately 6.6 per cent of the drilling costs of
these first two wells, with the other 20 per cent of the company's
interest being paid by RAG and Sorgenia under the terms of the
company's farm-out to RAG and Sorgenia. The company holds 195,000 net
acres in Poland through Saponis and a further 880,000 adjacent net
acres through another European subsidiary.
Wolf Regener, CEO of the Company, stated, "We are pleased with the
initial log analysis and the gas shows in the Wytowno #1 well. We look
forward to the analysis of all the data to identify the intervals to be
tested so that we can attempt to prove that gas can be liberated from
the Polish shales in this wellbore."
Germany
The Company is currently awaiting the analysis of the samples that were
collected in the second phase of field work, which was completed during
the quarter of 2010. Additionally, the bidding process has been
initiated for seismic operations planned for the second half of
2011. The Company expects to acquire between 30 and 50 kilometers of 2D
seismic on each of the 6 concession blocks. The first seismic to be
acquired will likely be in the North Rhine Westfallia blocks on acreage
offsetting Exxon. The Company's 2.4 million acres in Germany were
acquired primarily for shale gas, but some of the blocks also have
secondary potential for tight gas sands and Coal Bed Methane.
Alabama
In Alabama the Company has completed testing of its WS Lee well without
economic quantities of gas being produced. The well is being plugged
and abandoned.
Financials
The Company will be releasing its year end financials and its 2010 year
end reserve report on or about March 25th, 2011.