TSX ticker symbol; BKX
CAMARILLO, CA, Sept. 14, 2014 /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 is currently flowing back the Wiggins 11-2H well following
its recent hydraulic fracturing treatment. During this flowback, the
Wiggins 11-2H had a 48 hour initial production rate of 550 barrels of
oil equivalent per day (BOEPD), of which 355 barrels were oil.
Preliminary data indicates that its production rate is similar to other
Caney wells drilled by BNK, in particular the Wiggins 12-8H and Barnes
7-2H wells. An artificial lift system was recently run into the well
and is currently being optimised.
The Hartgraves 1-5H well has been drilled and casing has been run and
cemented in place. The well has approximately 4,900 feet of lateral
available for fracture stimulation, which is scheduled to begin next
week. The Company continues to refine what it believes is the most
productive stratigraphic interval and is utilizing improved geosteering
tools to place the lateral in this interval. To reduce drilling and
completion costs and attempt to enhance the productivity of the wells,
the Company has been integrating the geology, 3D seismic, core results
and advanced logging while drilling techniques.
The Company's drilling and completion costs for its future wells are
currently estimated to be about $7.1 million per Caney well. This is a
reduction of 11 percent from our previously estimated costs of $8
million.
The drilling rig is mobilizing to the Emery 17-1H location. After
drilling the Emery 17-1H well, the Company's net Caney acreage will
have increased to about 15,900 acres.
Gapowo B-1 well - Poland
The downhole pressure gauges that were put into the Gapowo B-1 well are
planned to be recovered this week. As previously announced, the data
gathered from the gauges is expected to provide the remaining
information required to complete our reservoir model analysis. The
Company anticipates completing the reservoir analysis in October.
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 and Spain. 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, including estimated future Caney well costs.
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 (barrels of oil equivalent) 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.
This news release contains peak and initial production rates and other
short-term production rates. Readers are cautioned that initial
production rates are preliminary in nature and are not necessarily
indicative of long-term performance or of ultimate recovery.
SOURCE BNK Petroleum Inc.
