CAMARILLO CA, Feb. 24, 2014 /CNW/ - BNK Petroleum Inc. (the "Company" or "BNK") (TSX: BKX), is providing an update on its Polish shale gas project
and it's Tishomingo Field, Caney oil shale operations in Oklahoma.
Poland
In Poland, the Company has successfully drilled, cased and cemented its
Gapowo B-1 horizontal well with excellent gas readings regularly
recorded throughout the lateral. The well successfully drilled the
targeted over-pressured, gas charged, organic-rich Lower Silurian and
Ordovician shales that were originally encountered in the vertical
Gapowo B-1 well. The well has approximately 5,900 feet of lateral
available to fracture stimulate.
The Gapowo B-1 well is believed to be the longest horizontally drilled
well in Poland.
The high gas readings recorded during the drilling of the lateral were
consistent with the characteristic high gas shows observed in the
original vertical well, despite increased mud weight and a switch to
oil-based mud. The conclusions of the log and core data analysis and
sustained elevated gas shows in the lateral validate the Company's
belief that the Lower Silurian and Ordovician shales are highly
prospective for shale gas. The analysis indicated the shales have good
total organic carbon, porosity and permeability. In addition, the
Company's geological analysis indicates that these characteristics are
likely to extend over a significant portion of the Company's Baltic
Basin acreage. The Company believes that it controls about 285,000 net
acres that have good potential to produce natural gas and another
approximately 285,000 net acres that are also prospective but have
higher associated risk.
The Company has prepared a completion design for this well that is based
on the core analyses and knowledge obtained from previous wells and
stimulations. The Company's current plan is to fracture stimulate
approximately thirty percent of the available lateral length followed
by an extended production test to optimize its design prior to fracture
stimulating the remaining lateral.
Site modifications in preparation for the fracture stimulation will
begin as soon as the drilling rig has moved off site. The site
modifications including building the water handling facilities are
expected to take a number of weeks after which the actual fracture
stimulation can begin.
Oklahoma - Tishomingo Field
As planned, the Company recently fracture stimulated 685 feet of the
5,444 foot lateral (12.5%) in the Leila 31-2H horizontal well, to test
a new stimulation technique for cost optimization purposes. Although
the pilot test results were lower than expected, the information
acquired will greatly assist the Company in continuing to pursue its
optimal completion design and the previously disclosed $8 million
estimated Caney well cost.
The Wiggins 12-8H and Barnes 7-2H Caney wells continue to perform very
well. The 30 day rate of the Wiggins 12-8H well, where only half the
length of the Company's typical planned Caney well was effectively
stimulated is 273 Barrels of oil per day (BOPD) or 402 Barrels of oil
equivalent per day (BOEPD). The Barnes 7-2H well had a 60 day rate of
360 BOPD (469 BOEPD) from a lateral that still has 15 percent available
to be fracture stimulated.
Wolf Regener, President and Chief Executive Officer commented, "In
Poland, I am very excited that we have confirmed our original discovery
in the Gapowo B-1 vertical well by successfully drilling the long
lateral and encountering such excellent shows. We are looking forward
to a successful fracture stimulation and production test to confirm the
play's full potential. In the U.S., the sustained production results
at both the Barnes 7-2H and Wiggins 12-8H wells are validating our
internal estimates. These results along with our Caney whole core
analysis will help fine tune the plan for our 2014 drilling program
which is expected to begin in the second quarter of this year. We
also look forward to obtaining the final year end reserve report which
we anticipate reporting in the next few weeks."
The Company's investor presentation has been updated and can be found on
Company's website.
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 oil and 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 plans, anticipated results
and timing, estimated future Caney well costs 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 managements' expectations, that new stimulation
techniques will be successful, that the Company's geological analyses
are accurate, 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 carry out its
plans, 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 managements' expectations, new
completion techniques proving to be unsuccessful, the Company's
geological analyses proving to be inaccurate, 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.
