CAMARILLO, CA, Dec. 8, 2013 /CNW/ - BNK Petroleum Inc. (the "Company" or "BNK") (TSX: BKX), is providing an update on its Tishomingo Field, Caney oil
shale operations in Oklahoma as well as its Polish shale gas project.
Oklahoma - Tishomingo Field
The Company's fifth Caney well, the Barnes 7-2H, was successfully
fracture stimulated in 85 percent of the lateral and, while early in
the flowback phase, has averaged approximately 520 barrels a day of oil
and 230 barrels of oil equivalent per day (BOEPD) of natural gas and
natural gas liquids (NGL's) over the last four days. Despite its
shorter completed lateral section, the Barnes 7-2H well has an oil rate
comparable to the initial oil rate of the Company's previous well, the
Hartgraves 5-3H well. The Barnes 7-2H well is the first well drilled in
what the Company believes is a more prolific and thicker oil rich
subinterval of the Caney.
The entire 5,039 foot lateral was not fracture stimulated due to a
perforation tool getting temporarily stuck in the well after the
successful stimulation of 27 stages. The removal of the perforation
tool delayed the unrestricted flowback of the well. The Company plans
on finishing the stimulation of the last 5 stages following the Wiggins
12-8H stimulation.
Wolf Regener, President and Chief Executive Officer, commented, "We are
very pleased with the production results from this well. Our technical
team targeted what they believed was a more oil prolific portion of the
reservoir and the early flow data has validated that. In the Barnes
7-2H well, approximately 70% of the production is oil versus about 50
percent in our previous Caney wells. These strong oil rates are
particularly encouraging considering the shorter lateral and the delays
we had in getting this well into production due to the stuck tool."
The Company also successfully finished drilling the Wiggins 12-8H well
and plans to begin fracture stimulation of that well in the third week
of December. The Wiggins 12-8H well has about 4,100 feet of lateral in
the Caney that is planned to be fracture stimulated.
The drilling rig has since been mobilized to the next location and has
already begun drilling the Company's next Caney well, the Leila 31-2H
well which is expected to take about 30 days.
The Company has approximately 100% working interest in both the Wiggins
12-8H and the Leila 31-2H wells. As a result of the Company's recent
operations, the Company's net acreage in the Caney and Upper Sycamore
formations in the Tishomingo Field has increased to approximately
14,880 acres.
Poland
In Poland, the Company has received the requested concession
modification amendment for the Gapowo B-1 well on its Bytow
concession. The Company has also now received all the other permits
needed to re-enter the Gapowo B-1 well and drill a horizontal lateral
in the Ordovician formation. A drilling rig has been contracted, is
currently mobilizing to the location, and is expected to start drilling
after the first of the year. The well is expected to take about 35
days to drill. The fracture stimulation will follow after the removal
of the rig.
The vertical Gapowo B-1 well had encountered over-pressured, gas
charged, organic-rich shales in the Lower Silurian and Ordovician
intervals. While drilling the vertical well the average and maximum
total gas readings were much higher than those seen in the Company's
other Baltic Basin wells. The analysis of the log and core data leads
the Company to believe that the Lower Silurian and Ordovician shales
are highly prospective for shale gas as the shales have good total
organic carbon, porosities and permeabilities. The Company's
geological work indicates that these characteristics are likely to
extend over a significant portion of the Company's Baltic Basin
acreage.
Corporate
The Company also is pleased to announce that Mr. Gary Johnson has
accepted the position of Chief Financial Officer and Vice President of
the Company, on a permanent basis. Mr. Johnson had previously been
appointed Chief Financial Officer on an interim basis.
About BNK Petroleum Inc.
BNK Petroleum Inc. is an 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,
Spain and Germany. Additionally the Company is utilizing its technical
and operational expertise to identify and acquire additional
unconventional projects. The Company's shares are traded on the Toronto
Stock Exchange under the stock symbol BKX.
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 statements regarding Caney wells
and Gapowo B-1 well development, including anticipated results and
timing, and the prospectiveness of the Company's properties.
Forward-looking information is based on plans and estimates of
management and interpretations of exploration information by the
Company's exploration team at the date the information is provided and
is subject to several factors and assumptions of management, including
that indications of early results are reasonably accurate predictors of
the prospectiveness of the shale intervals, that anticipated results
and estimated costs will be consistent with management's expectations,
that required regulatory approvals will be available when required,
that no unforeseen delays, unexpected geological or other effects,
equipment failures, permitting delays or labor or contract disputes or
shortages are encountered, that the development plans of the Company
and its co-venturers will not change, that the demand for oil and gas
will be sustained, that the Company will continue to be able to access
sufficient capital through financings, farm-ins or other participation
arrangements to maintain its projects, and that global economic
conditions will not deteriorate in a manner that has an adverse impact
on the Company's business, its ability to advance its business strategy
and the industry as a whole. 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 any of
the assumptions on which such forward looking information is based vary
or prove to be invalid, including that anticipated results and
estimated costs will not be consistent with management's expectations,
the Company or its subsidiaries is not able for any reason to obtain
and provide the information necessary to secure required approvals or
that required regulatory approvals are otherwise not available when
required, that unexpected geological results are encountered, that
equipment failures, permitting delays or labor or contract disputes or
shortages are encountered, that completion techniques require further
optimization, that production rates do not match the Company's
assumptions, that very low or no production rates are achieved, that
the Company is unable to access required capital, that occurrences such
as those that are assumed will not occur, do in fact occur, and those
conditions that are assumed will continue or improve, do not continue
or improve, and the other risks and uncertainties applicable to
exploration and development activities and the Company's business 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, any of which could result in delays, cessation in planned work or loss
of one or more concessions and have an adverse effect on the Company
and its financial condition. The Company undertakes no obligation to
update these forward-looking statements, other than as required by
applicable law.
BOEs/boes may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
SOURCE BNK Petroleum Inc.
