CAMARILLO, CA, Sept. 18, 2018 /CNW/ - BNK Petroleum Inc.
(the "Company" or "BNK") (TSX: BKX) is pleased to announce that it has successfully drilled and cased the
Brock 4-2H well (77% working interest) in the Company's Caney shale oil acreage in the
Tishomingo Field which is located in the SCOOP region in Oklahoma.
Wolf Regener, President and CEO commented "Our team drilled the Brock 4-2H well safely and
underbudget. The hydrocarbon shows recorded while drilling the lateral look comparable to our best wells. Based on
everything we've seen, we expect the Brock 4-2H well to be another of our top performing wells once the well has been fracture
stimulated."
The major oil company that owns the minority interest in the Brock 4-2H well is preparing to drill the Anderson 1-5H10X3
well, in which BNK has a 33% working interest. The Anderson 1-5H10X3 is a planned two mile lateral also targeting the
Caney formation and offsetting the Brock 4-2H well. The well is expected to begin
drilling on September 24.
The completion of the Brock 4-2H well is being scheduled to commence after the casing has been set in the Anderson 1-5H10X3
well, to avoid the frack interfering with the drilling of the Anderson well. The two companies are working on co-ordinating
the scheduling of simultaneous fracture stimulations once the Anderson well drilling rig has been released.
At the current price of oil at over $68 USD a barrel, our incremental netbacks for these wells
are estimated to be over $37 USD a barrel, which represents a substantial contribution to the
Company's cash flow.
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 its subsidiaries, the Company owns and operates shale oil
and gas properties in the United States. 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 and on the OTCQX under the stock symbol BNKPF.
Cautionary Statements
In this news release and the Company's other public disclosure: The references to barrels of oil equivalent ("Boes")
reflect natural gas, natural gas liquids and oil. 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. Given that the value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value. Possible reserves are those additional reserves that are less certain to be recovered
than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved
plus probable plus possible reserves. Readers should be aware that references to initial production rates and other
short-term production rates are preliminary in nature and are not necessarily indicative of long-term performance or of ultimate
recovery. Readers are referred to the full description of the results of the Company's December 31,
2017 independent reserves evaluation and other oil and gas information contained in its Form 51-101F1 Statement of
Reserves Data and Other Oil and Gas Information for the year ended December 31, 2017, which the
Company filed on SEDAR on March 14, 2018. Netback per barrel, net operating income and funds from operations
(collectively, the "Company's Non-GAAP Measures") are not measures recognized under Canadian generally accepted accounting
principles ("GAAP") and do not have any standardized meanings prescribed by GAAP. The Company's Non-GAAP Measures are
described and reconciled to the GAAP measures in the management's discussion and analysis which are available under the Company's
profile at www.sedar.com.
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 the timing of and expected results from planned Caney wells development, production and estimated netbacks. Forward-looking information is based on
plans and estimates of management and interpretations of data by the Company's technical team at the date the data is provided
and is subject to several factors and assumptions of management, including that that indications of early results are reasonably
accurate predictors of the prospectiveness of the shale intervals, that required regulatory approvals will be available when
required, that no unforeseen delays, unexpected geological or other effects, including flooding and extended interruptions due to
inclement or hazardous weather conditions, equipment failures, permitting delays or labor or contract disputes are encountered,
that the development plans of the Company and its co-venturers will not change, that the offset operator's operations will
proceed as expected by management, that the demand for oil and gas will be sustained, that the price of oil will be sustained or
increase, 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 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, the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and
production; delays or changes in plans with respect to exploration and development projects or capital expenditures; the
uncertainty of reserve and resource estimates and projections relating to production, costs and expenses, and health, safety and
environmental risks, including flooding and extended interruptions due to inclement or hazardous weather conditions), that the
offset operator's operations have unexpected adverse effects on the Company's operations, 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 price of oil will decline, 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.
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SOURCE BNK Petroleum Inc.
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