BNP Resources Inc. V.BNX.A

BNP - Letter to Shareholders - May 2017

[BNPResources]

RE: May 2017 - Letter to Shareholders 
Dear Shareholders:
 
The purpose of this monthly letter is to bring BNP shareholders up to date, on issues and news, since the last letter.

1. The following is a summary of activities over the past month:

1. I have completed the formal loan application documents, just last night, and submitted to our agent. This application will be packaged with the revised business plans and CV’s. We don’t yet have a definitive date for formal approval of the loan application, but will advise shareholders as soon as we have more details. The loan process is moving forward through to the next gate.

2. Paid the corporate registration for BNP Resources Inc., during my most recent trip to Calgary. The list of directors was modified to reflect the previously announced retirement of one of our corporate directors. The mailing address for the legal counsel, was modified to match our corporate address on file.

3. Oil prices closed the week at $47.74 US for WTI crude. Saudi Arabia is taking a renewed interest in OPEC and limiting supply, to a well supplied US market. The 5% going public transaction for Saudi Aramco, is scheduled for 2018. In order for this $50 Billion deal to be successful, we are told that oil prices must be higher than $50 US WTI. In order for the US brokers to sell the deal, I am estimating that a $65 US WTI oil price will be required.

4. The NDP and Greens will be teaming up to form a new “anti-pipeline” provincial government in BC. This may force the routing of future pipelines through the USA and the Canadian east coast, rather than Vancouver. The Kinder Morgan Pipeline to the west coast may face further resistance, from Victoria, BC.

5. Apache Canada has announced the sale of 5,000 BOE/day of light oil assets for $330 million, to Cardinal Energy Ltd, a 19,000 BOE/day junior producer. The deal will be funded with $170 in new shares and $150 million in debt. Properties include interests in House Mountain in Alberta, and the Midale and Weyburn pools in SE Saskatchewan.

2. The following is a summary of our Phase I and Phase II projects:

1. Phase I - Purchase of 2,000 barrel per day, oil facility, a 49 barrel per day Southern Alberta oil pool, and a farm in on two Southern Alberta DUC’s (drilled uncompleted wells). 

2. Phase I - Oil well abandonment (environmental) company.

3. Phase II - Natural gas pipeline – 60% equity interest, and Power Generation, Transmission and Distribution – (30% equity interest).