Thermal PilotOne point of clarification. SAGD has been mentioned a few times in the recent past on this board. BNK will not employ SAGD, but rather they will use Cyclic Steam Stimulation for their thermal pilot project. They will be using horizontal wells, though, so it will be different than CSS from years ago. SAGD uses horizontal pairs to build and maintain a steam chamber during the life of production. CSS steams, then sucks, steams, then sucks. This is not a bad thing, as much of the Heavy Oil production in Venezuala is also going to use this approach.
I don't see the thermal pilot as the icing, it is more critical to proving reserves - and proved reserves is what will drive a buyout IMO. Even at 40K bpd, BNK is not worth their market cap today based on current reserves. They need to get closer to the billion barrels of oil recoverable and success in the thermal will have a big impact on this.
BTW - not that i subscribe, but it looks like we will gap up at the open to above the 200 day MA.