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BNK Petroleum Inc. Operational Update

July 28, 2011

CAMARILLO, CA, July 28, 2011 /PRNewswire/ – BNK Petroleum Inc. (the “Company“) (TSX: BKX), provides the following operational update:

Poland

The Company received a portion of the core analysis back from the 3(rd) party contractors from both the Wytowno S-1 and Lebork S-1 wells, on
the adjacent Slawno and Slupsk concessions.  The following data, from
the Lebork S-1 well is only from the sidewalls taken in the lower
portion of the Ordovician and the Alum shale, as the whole core
analysis from above these intervals is not yet completed.  The
additional core analysis data for the target intervals in the Lebork
S-1 well, and the final core analysis reports for both wells are
expected to be in by the end of August at which time the log analyses
for both wells will be reprocessed with the core data.

        --  Porosities: In the Lebork S-1 well the 47 meter thick
            Ordovician/Cambrian interval has porosity ranges from 0.98 to
            5.2% averaging 4.0% and in the Wytowno S-1 well the 91 meter
            thick Lower Silurian target interval has porosity ranges of 1.1
            to 4%, averaging 3.0% and the 40 meter thick shallower Lower
            Silurian interval has a porosity of 5.6%.

        --  Gas filled porosity: In the Lebork S-1 well gas filled porosity
            ranges from 0.8 to 3.9%, avg 1.8% of bulk volume in the
            Ordovician/Cambrian. In the Wytowno S-1 well the Silurian
            targets range from 0.3 to 1.6%, averaging 1.1% of bulk volume,
            with one shallower Silurian interval that has a value of 4.3%
            of bulk volume.

        --  Desorption: The Lebork S-1 well had average desorption values
            of 40 Standard Cubic feet of gas per ton of rock, ("SCF/ton")
            over the Lower Silurian and 268 SCF/ton over the 47 meter
            Ordovician/Cambrian interval. The Lower Ordovician/Cambrian
            shale in Lebork S-1 had intervals as high as 451 SCF/ton. The
            Wytowno S-1 well had average desorption values of 124 SCF/ton
            in the Lower Silurian target interval and 77 SCF/ton in the
            shallower Lower Silurian interval. For comparative purposes the
            Company's Oklahoma Woodford shale Tishomingo field has average
            values of 104 SCF/ton.

        --  Thermal maturity: The Wytowno S-1 thermal maturity values were
            estimated from the reflectance of pyrobitumen and the Thermal
            Alteration Index (TAI) obtained from Palynological
            (micro-paleo) analysis of the drill cuttings, which both equate
            to an Ro of 1.8 in the Lower Silurian. The TAI for the Lebork
            S-1 cuttings from the Lower Silurian to Ordovician/Cambrian are
            also equivalent to a Ro of 1.8, which places the thermal
            maturity for both wells in the dry gas window.

        --  TOC: In Wytowno S-1 the total organic carbons ("TOCs") are
            variable across the Lower Silurian target interval, ranging
            from 0.1 to 1.3, TOC by percent weight. The TOC data from the
            Lebork S-1 well is not yet available, however both the log
            calculated values and SEM image analysis values indicate
            multiple times higher TOCs across the Ordovician/Cambrian
            shales.

The Company also reports that the Starogard S-1 well on the Starogard
concession in Poland, in which the Company has an indirect 26.69%
interest, began drilling on July 16(th), 2011.  The well is currently drilling at a depth of about 1,700 meters
after installing 690 meters of steel casing and cementing it from the
bottom to the surface.   This depth is below the potential fresh water
intervals and was installed to isolate and protect them.  Another
string of steel casing will be installed and cemented at an approximate
depth of 2,050 meters, prior to drilling ahead to the estimated core
point.   At the core point, the Company is planning to core the rest of
the well for analysis of the formations.

Completion activity for the Lebork S-1 and Wytowno S-1 wells are
scheduled to begin in mid-September.  The Company is also reviewing the
possibility of performing the completion of the Starogard S-1 well in
conjunction with the two other wells.  Well results and equipment
availability will determine the timing.  The Company is utilizing best
industry practices for drilling and testing our wells, including
utilizing bladders to hold the fresh water for fracture stimulating the
well instead of digging a large pit. The arrival of the bladders will
determine the start of the completion activity.  The bladders ensure
complete isolation from surface soil and water, reduce truck traffic to
and from the site and increase safety.  The flowback fluids are flowed
directly into self-contained steel tanks on location.  The Company is
also fracture stimulating utilizing the most environmentally friendly
additives currently available from Schlumberger in Poland.

The Company has secured approval to acquire approximately 740 km of 2D
seismic of which 407 km is on the Saponis and 333 km is on the Indiana
concessions.  In addition, the three Indiana and three Saponis
concessions were extended to provide the Company enough time to acquire
the seismic prior to drilling the first three wells in Indiana and the
second three wells in Saponis.  The Company anticipates seismic
acquisition to commence in the 4(th) quarter of 2011.   A seismic contractor has been selected and
permitting for the Indiana seismic program is scheduled to start
immediately.  The objective of the seismic program is to further define
basin structure and burial history as well as aid in the selection of
individual well locations.

Incorporating the micro-paleo and high-resolution stratigraphic analysis
into the geological picture showed that the Wytowno S-1 well was
drilled on a localized paleo-topographic high and what was originally
interpreted as Ordovician/Cambrian shales are actually Lower Silurian
hot shale intervals.  The intervals in the Lebork S-1 well have also
been revised on the basis of the micro-paleo and high-resolution
stratigraphic analysis, resulting in slightly different thicknesses of
the various intervals. In addition to the seismic program, the Company
has contracted a depth to crystalline basement study. The study will
cover a large portion of northeast Poland, fully encompassing the
Saponis and Indiana owned acreage. Interpretation of the study is
expected to allow us to better understand general basin
geometry, identify sub basins and locate significant basement related
faulting. The study is slated for completion by early September 2011.

A new thermal maturity map of part of the Baltic Basin, along with other
data is included in an updated description of the Company’s projects on
the Company’s website; www.bnkpetroleum.com.

Wolf Regener, BNK’s President and CEO commented “We are gaining a better
understanding of the basin and are cautiously encouraged by what we are
seeing from this early data.  The Ordovician/Cambrian interval in the
Lebork S-1 well looks better than any other log we have seen in the
basin so far.”

The Wytowno S-1, Lebork S-1 and Starogard S-1 wells are being drilled by
one of the Company’s subsidiaries as Manager for Saponis Investments Sp
z o.o.. The Company owns approximately 26.7 per cent of Saponis with
remaining ownership with Rohöl-Aufsuchungs Aktiengesellschaft,(“RAG”)
Sorgenia E&P SpA and LNG Energy through its subsidiary. The Company is
obliged to pay approximately 6.69 per cent of the drilling costs of
these first wells on the Saponis concessions, until $25 million has
been spent on the project. The other 20 per cent of the Company’s share
of the seismic and first two wells has been paid by RAG and Sorgenia
under the terms of the Company’s farmout to RAG and Sorgenia. The
Company holds 195,000 net acres in the Baltic Basin of Poland through
Saponis and a further 880,000 adjacent net acres through Indiana
Investments Sp z o.o., it’s wholly owned subsidiary.

Germany

The Company has opened an office in Hanover, Germany and is finalizing
the process to acquire seismic on its six concessions in that country.

Europe

The Company continues to await the potential grant of other concessions
that it has applied for and it also continues to apply for additional
concessions in multiple countries.

United States

The Company recently fractured stimulated two of its Woodford horizontal
wells in Oklahoma.  Both wells are still in the early stages of
flowback with rates from the Gray 22-1H well currently at over 700
gross barrels of oil equivalent per day (“boepd”) and Bice 20-1H just
beginning its cleanup. The Company also participated in one
non-operated well in the field, the Wiggins 1-12H which is also in the
early stages of flowback. The Company is currently scheduling two to
three more horizontal fracture stimulations by the end of the year. 
Current net daily production has recently climbed to over 1,900 boepd,
up from the first quarter 2011 average of 1,350 boepd.

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 but not limited to information
regarding the Company’s current plans and expectations regarding its
concessions in Europe and Tishomingo field in Oklahoma, USA, and in
particular, timing of commencement and completion of seismic and other
studies, fracture-stimulations , expected timing of results of core and
log analyses, the Company’s expectations as to the outcomes of the
foregoing and hypotheses regarding the geology of the basins in which
it has operations and is conducting exploratory work. Forward-looking
information is based on plans and estimates of management at the date
the information is provided and is subject to certain factors and
assumptions of management, including that no unforeseen delays,
unexpected geological or other effects, equipment failures, permitting
delays, delays in procurement of required equipment or personnel, labor
or contract disputes are encountered as well as that the Company’s the
financial condition and the development plans of the Company and its
co-venturers will not change.  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
occurrences such as those referred to above may occur and result in
delays, unexpected geological formations or occurrences necessitating
changes to or cessation in planned work, and that the financial
condition and development plans of the Company or the other
participants in the Wytowno #1, Lebork S-1 and Starogard wells change,
as well as other risks typically associated with joint ventures with
third parties and the risks and uncertainties applicable to exploration
activities and to the Company, 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.

“Boe” means barrel of oil equivalent of natural gas and crude oil on the
basis of 1 boe for 6 Mcf of natural gas (this conversion factor is an
industry accepted norm and is not based on either energy content or
current prices).  References to boe’s may be misleading, particularly
if used in isolation. A boe conversion ratio of six mcf to one barrel
is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency
at the wellhead. 

About BNK Petroleum Inc.

BNK Petroleum Inc. is a U.S. based 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,
Germany and Spain. 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.
 

SOURCE BNK Petroleum Inc.


Source: newswire



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