Microsoft Cloud Authors: Andreas Grabner, Jim Kaskade, Lori MacVittie, Janakiram MSV, Pat Romanski

News Feed Item

BNK Petroleum Inc. provides corporate update

TSX ticker symbol; BKX

CAMARILLO, CA, Jan. 13, 2013 /PRNewswire/ - BNK Petroleum Inc. (the "Company") (TSX: BKX) provides the following update on its operations in Poland and Oklahoma.


The exploration horizontal Barnes 6-2H well operated by the Company's US subsidiary BNK Petroleum, (US) Inc. (BNKUS) in its Tishomingo field in Oklahoma, is still being tested with very encouraging results.  The 21 day stabilized pumping production rate from the Lower Caney and Upper Sycamore (Mississippian Lime equivalent) formations was 180 barrels of oil equivalent ("BOE") per day with 70 percent of the production being oil.  As stated in previous press releases, the horizontal section was completed in both the Sycamore and lower members of the Caney formation. The testing results of the individual zones is designed to help optimize placement of laterals in future wells.

To determine which interval is producing the majority of the oil, packers were set in selected sections of the lateral to isolate the various horizons and conduct individual tests.  The testing continues, as the individual tests are producing at higher flush rates than expected.  For instance the Sycamore interval alone tested 140 barrels of fluid a day with 70% being oil and the balance being frac fluid that is still being recovered.  The tests in the select Caney intervals are currently inconclusive because they are flowing clean oil at rates of 200 barrels of oil per day ("BOPD").

This is providing good evidence that higher proppant concentrations and potentially more frac stages will further increase the productivity of these zones in future wells. Based on testing results to date, it is anticipated that future wells will include optimized frac stage spacing, much higher proppant concentrations, analogous to other successful shale oil projects, and 20% longer lateral lengths than this well while targeting the most productive interval.  These optimizations are expected to further improve on the anticipated production rates and potential overall reserve recoveries in future wells targeting these zones.

BNKUS's internally generated models show that a Sycamore/Caney well with a theoretical initial production rate of 450 BOPD would be expected to produce over 650,000 bbls of oil and yield a rate of return greater than 150 percent (based on 3 years of future strip pricing followed by Sproule's forward curve pricing).  In addition, this modeling also estimates that an initial production rate of only 150 BOPD, recovering 180,000 bbls of oil, would provide a 10% rate of return. These models are based on the results to date of testing the Barnes 6-2H well and the Nickel Hill 1-26 well and also incorporate the anticipated effect of the potential future optimizations referred to above.  Since these zones are present over BNKUS's entire acreage position with average to above average calculated net pays (from publically available data), based on this modeling, Sycamore/Caney well development, if successful, would provide significant reserve additions.

Provided required capital is available, BNKUS also plans to drill Woodford shale wells in 2013 that will target oily areas of the field that have a high oil to gas ratio.  Internal modeling by BNKUS shows that these oily areas should generate a 50% rate of return based on the same pricing assumptions as utilized above.  BNKUS's partner and offset operator, XTO, appears to be focusing its Woodford activities in similar areas and has recently applied for a 55 acre spacing (11 wells per section) in a section where BNKUS has a non-operated interest.  It should be noted that BNKUS's reserve report assumes a 160 acre spacing scenario (4 wells per section) for its current third party reserve estimate.


The Company is pursuing a new debt facility that, if obtained, would replace its existing senior debt facility with an increased borrowing base that would enable the Company to accelerate its Tishomingo field development as described above, as well as provide some general working capital.  There can be no assurance that such a facility will be obtained.


The Company has received gas in place estimates from third party contractors for its Gapowo B-1 well of up to 135 billion cubic feet ("BCF") per section.  The Company's primary target interval, within the lower Silurian and Ordovician (110m gross) has gas in place estimates up to 86 BCF per section. The Gapowo B-1 well data has validated the Company's geologic model of increasing thickness and organic content over the Lower Silurian/Ordovician target interval as it moves into a more distal basinal setting.  The Company hopes to achieve economic flow rates by drilling a lateral out of this wellbore due to the occurrence of very strong gas shows while drilling, good porosity, higher total organic content, over pressured shales, good permeability and gas in place estimates.

The Company is still awaiting the concession modification approval which is required for the re-entry of the Gapowo B-1 well to drill a horizontal leg to test these highly promising zones.  The Company's application is progressing, and although it has not been provided a timeframe the Company expects to receive approval within a few months.   In addition, discussions are continuing with multiple parties regarding farming into the Company's wholly owned concessions.

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 outside of North America. 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 information regarding the Company's current plans and expectations in regard to the Barnes 6-2H well and the Gapowo B-1 well and its interpretation of results, expected production and rates of return, future well development and its effects on reserves, a new credit facility, gas in place estimates and a concession modification approval for the Gapowo B-1 well.  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 the indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, that required regulatory approvals and financing will be available when required and on terms that are acceptable to the Company, that expected production from future wells can be achieved as modeled, declines will match the modeling, future well production rates will be improved over existing wells, that rates of return as modeled can be achieved, that recoveries are consistent with management's expectations, that additional wells are actually drilled and completed and the assumptions set out above under the heading "Oklahoma", that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays or, labor or contract disputes are encountered, that the concession modification approval for the Gapowo B-1 well will be obtained, 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 the Company or its subsidiaries is not able for any reason to obtain and provide the information necessary to secure required approvals, that the proposed new credit facility or other financing required to fund the Company's plans will not be obtained, that unexpected geological results are encountered in Oklahoma or in Poland, 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 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, 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. These risks as well as the other risks and uncertainties applicable to exploration 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. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

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.  "Mcf" means thousand cubic feet and "bbl" means barrel.

SOURCE BNK Petroleum Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue an...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.