CAMARILLO, CA, Oct. 13, 2017 /CNW/ - BNK Petroleum Inc. (the
"Company") (TSX: BKX) is pleased to announce that the
Brock 9-2H well (100% working interest) averaged about 730 Barrels
of oil equivalent per day (BOEPD), of which 625 barrels are oil,
for the last 5 days, while still producing back completion
fluid. The production from the well, which is located in
BNK's Tishomingo field, in the
SCOOP region of Oklahoma, is
currently over 600 BOEPD, of which 520 barrels are oil (87%)
and appears to be stabilizing.
Commenting on the announcement, Wolf
Regener, President and CEO, said:
"Our Brock 9-2H well is currently producing oil at rates that
are 39 percent higher than the possible type curve used to estimate
the reserves attributed to the Company's Tishomingo Field. If
the production follows a similar path to our previous well, the
Hartgraves 1-6H, then it should have an excellent 30-day initial
production (IP) rate, well over the possible type curve.
"The Brock 9-2H well was identified as a possible location on
our year end 2016, NI 51-101 reserve report and is about a mile
east of the closest proved location on that reserves report.
This well demonstrates the excellent production that is achievable
as we continue to expand our drilling in the field further
east.
"This outstanding result comes in addition to the strong results
from our previous well, the Hargraves 1-6H. The Hargraves
1-6H well produced a 30-day IP rate of 385 BOEPD (317 barrels oil),
which oil rate is above the probable type curve used to estimate
the Company's reserves. These two wells bring our current
production to over 1,800 BOEPD which has significantly increased
our 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
OTCQB 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, 2016 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,
2016, which the Company filed on SEDAR on
March 23, 2017.
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.
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 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 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.
SOURCE BNK Petroleum Inc.