RE: BNK Reserves up 31%Here is the report with the columns formatted:
BNK PETROLEUM INC. ANNOUNCES 2010 YEAR END RESERVES AND POLAND UPDATE
TSX ticker symbol: BKX
CAMARILLO, CA, March 14 /CNW/ - BNK Petroleum Inc. (the "Company") (TSX: BKX) announces a 31% increase in the estimated net presentvalue of future net revenue (before tax, discounted at 10%) of itsTishomingo shale gas field proved and probable reserves, to US$315million from US$241 million at 2009 year-end. Proved and probablereserves increased to 39.7 million boe from 37.9 million boe at 2009year-end, a 5% increase.
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Forecast Price Case - Before Tax - discounted at 10%
(as at December 31, 2010) |
| Category |
Gross Oil
(Mbbls) |
Net Oil
(Mbbls) |
Gross Gas
(Mmcf) |
Net Gas
(Mmcf) |
Gross NGL
(Mbbls) |
Net NGL
(Mbbls) |
Net
Mboes |
NPV 10%(1)
(US$1000's) |
| 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 |
| Proved Undeveloped |
4,012 |
3,272 |
55,765 |
45,481 |
11,795 |
9,620 |
20,472 |
144,974 |
| Total Proved |
4,956 |
4,040 |
72,773 |
59,217 |
15,388 |
12,521 |
26,431 |
233,793 |
| Probable |
2,615 |
2,124 |
36,351 |
29,522 |
7,689 |
6,244 |
13,289 |
91,168 |
| 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 purchaseof an overriding royalty interest and net profits interest from it'sprevious lender last year, increased oil recoveries and higher forecastoil prices which together more than offset the lower forecast naturalgas prices.
Sproule Forecast as of January 1, 2011
| Year |
WTI,
$US/Bbl |
Henry Hub,
$US/MMBtu |
| 2011 |
$88.40 |
$4.44 |
| 2012 |
$89.14 |
$5.01 |
| 2013 |
$88.77 |
$5.32 |
| 2014 |
$88.88 |
$6.80 |
| 2015 |
$90.22 |
$6.90 |
| 2016 |
$91.57 |
$7.00 |
| 2017 |
$92.94 |
$7.11 |
| 2018 |
$94.34 |
$7.21 |
| 2019 |
$95.75 |
$7.32 |
| 2020 |
$97.19 |
$7.43 |
Poland
The second well, Lebork #1 on the Slupsk concession in Poland begandrilling on March 11, 2011 and drilling is anticipated to finish aroundthe end of April, 2011. The Company expects to receive the analysisfrom the sidewall cores taken in the Wytowno #1 well in April,following which the designing of the fracture stimulation program forthe Wytowno #1 well will begin. The possibility of achieving projectefficiencies by performing back-to-back fracture stimulations on theLebork #1 and the Wytowno #1 wells is currently being evaluated.
The Wytowno #1 and Lebork #1, wells are being drilled by SaponisInvestments 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 wereprepared by MHA Petroleum Consultants, LLC. independent petroleumengineering consultants of Lakewood, Colorado.
Reserves estimates are prepared in accordance with Canadian NationalInstrument 51-101 using assumptions and methodology guidelines outlinedin the Canadian Oil and Gas Evaluation Handbook and the Sproule Oil &Natural Gas Forecast effective January 1, 2011. Proved reserves arethose reserves that can be estimated with a high degree of certainty tobe recoverable. It is 90% likely that the actual remaining quantitiesrecovered will exceed the estimated proved reserves. Probable reservesare those additional reserves that are less certain to be recoveredthan proved reserves. It is equally likely that the actual remainingquantities recovered will be greater or less than the sum of theestimated proved plus probable reserves.
Unless otherwise stated, reserves refer to reserves of natural gas,natural gas liquids and crude oil expressed in barrels of oilequivalent ("boe"). Certain amounts cited herein have been rounded forpresentation purposes.
All references to 'boe' (barrel of oil equivalent) are calculated on thebasis of 6 mcf:1 bbl. Readers are cautioned that the conversion used incalculating barrels of oil equivalent is based on an energy equivalencyconversion method primarily applicable at the burner tip and does notrepresent a value equivalency at the wellhead. Furthermore, boes may bemisleading if used in isolation. Future net revenues disclosed hereindo not represent fair market value.
Forward looking information
Reserves estimates are by their very nature forward-looking. Certainother statements contained in this news release, such as the Company'splans and expectations regarding the work program in Poland alsoconstitute "forward-looking information" as such term is used inapplicable Canadian securities laws. Forward-looking information isbased on plans, expectations and estimates of management and of theCompany's independent qualified reserves evaluator at the date theinformation is provided and is subject to certain factors andassumptions, including, with respect to the reserves estimates andestimates of net present values of future net revenues, assumptionsthat reservoirs will respond as anticipated, that pricing assumptionsare valid, that funding for development costs will be available whenrequired and at a reasonable cost, that costs of labor, drilling rigsand other equipment will not vary materially from those estimated, thatoperating, abandonment and other such costs on which calculations arebased will be as anticipated, and with respect to all forward-lookingstatements in this press release, that no unforeseen delays, unexpectedgeological or other effects, equipment failures, permitting delays,labor or contract disputes are encountered as well as that theCompany's the financial condition and development plans of the Companyand its co-venturers will not change. Forward-looking information issubject to a variety of risks and uncertainties and other factors thatcould cause plans, estimates and actual results to vary materially fromthose projected in such forward-looking information. Factors thatcould cause the forward-looking information in this news release tochange or to be inaccurate include, but are not limited to, the riskthat occurrences such as those referred to above are realized andresult in delays, or cessation in planned work, and that the Company'sfinancial condition and development plans of the Company or the otherparticipants in the concessions in Poland will change as well as theother risks and uncertainties applicable to oil and gas exploration,development and production activities and to the Company as set forthin the Company's management discussion and analysis and its annualinformation form both of which are available for viewing under theCompany's profile at www.sedar.com . The Company undertakes no obligation to update these forward-lookingstatements, other than as required by applicable law.
About BNK Petroleum Inc.
BNK Petroleum Inc. is a U.S. based international oil and gas explorationand production company focused on finding and exploiting large,predominately unconventional oil and gas resource plays. Throughvarious affiliates and subsidiaries, the Company owns and operatesshale gas properties and concessions in the United States, Poland andGermany. Additionally the Company is utilizing its technical andoperational expertise to identify and acquire additional unconventionalprojects outside of North America. The Company's shares are traded onthe Toronto Stock Exchange under the stock symbol BKX.