TSX ticker symbol; BKX
QTCQX ticker symbol; BNKPF
CAMARILLO, CA, March 19, 2018 /CNW/ - All amounts are in U.S.
Dollars unless otherwise indicated:
2017 HIGHLIGHTS
- The Company's Total Proved Reserves increased by 40% to 25.2
million barrels of oil equivalent (BOE) and NPV10 value of the
Total Proved Reserves increased by 73% to $259.5 million based on the Company's
December 31, 2017 independent
reserves evaluation.
- Funds from continuing operations was $6.5 million for 2017 compared to $4.9 million for 2016, an increase of 32%
- Average production for 2017 was 1,092 BOEPD, an increase of 4%
compared to 2016 production of 1,045 BOEPD. This increase was
due to production from 3 new wells, the Chandler 8-6H well, the
Hartgraves 1-6H well, and the Brock 9-2H well. The production
from these new wells was partially offset by the impact of three
wells that were shut in during the first half of the year due to
offset fracture stimulation by another operator in the Woodford
formation beneath the Caney and normal production decline
- Subsequent to year end, the Company drilled the Glenn 16-2H
well and has just finished fracture stimulation operations with
production expected to start in April. The Company has also
drilled the WLC 14-2H well and expects fracture stimulation
operations in mid-2018
- Percentage of oil produced increased to 74% in the fourth
quarter of 2017 from 67% in the fourth quarter of 2016.
This is due to the new wells producing about 87% oil.
- Average netbacks were $25.49 per
BOE in 2017, an increase of 52% compared to 2016 due to higher
prices in 2017. If the realized gains from the commodity
contracts are included, the average netbacks for 2017 was
$29.39 per BOE compared to
$27.70 in 2016
- Revenue, net of royalties was $12.6
million for 2017 compared to $8.6
million in 2016 due to higher prices and production compared
to 2016
- In June 2017, the Company's US
subsidiary obtained a new $75 million
credit facility from BOK Financial, with an initial commitment
amount of $25.0 million. In
December 2017, the commitment amount
was increased to $30.0 million.
As of December 31, 2017, the US
subsidiary had borrowed $25.0 million
of the commitment amount and had an available borrowing capacity of
$5.0 million.
- Net loss was $1.6 million for
2017 compared to a net loss of $11.1
million in 2016. The Company had an unrealized loss on
financial commodity contracts of $1.2
million in 2017, compared to an unrealized loss of
$8.0 million in 2016.
- General & administrative expenses decreased by 1% for 2017
compared to the prior year due to the Company's continued cost
cutting efforts partially offset by advisor fees in 2017
BNK's President and Chief Executive Officer, Wolf Regener commented:
"We are very pleased with the results of our 2017 drilling
program. The three wells that came on production during the
year have significantly increased our production. Our average
production for the fourth quarter of 2017 was 1,539 BOE per day,
which was an increase of 132% from the fourth quarter of
2016. Our 2017 drilling also significantly improved our
reserve report, as our proved reserves increased by 40% from 2016,
to 25.2 million BOE. The NPV10 value of our proved reserves
increased by 73% to $259.5 million
compared to 2016.
"These results allowed us to obtain a $5
million increase in the borrowing capacity of our credit
facility from $25 million to
$30 million, which, along with our
positive cash flow, is being used to fund our 2018 drilling
program. So far in 2018, we drilled and successfully
completed the fracture stimulation of the Glenn 16-2H well which
will begin flowback next week. We expect production from this
well to start in the beginning of April. We have also drilled
the WLC 14-2H well with fracture stimulation operations to follow
in a few months. All of these operations have been performed
on time and under budget. Total cost for the Glenn 16-2H well
is expected to be less than the targeted $5.7 million budget. Both of these wells
had hydrocarbon shows comparable to some of our best wells and we
expect both of these wells to further increase our reserves and
cash flow.
"We generated funds from continuing operations of $2.8 million in the fourth quarter of 2017, which
was a 455% increase from the fourth quarter 2016 amount of
$0.5 million. For all of 2017,
funds from continuing operations totaled $6.5 million, which was an increase of 32% from
2016.
"Revenue, net of royalties was $5.0
million for the fourth quarter of 2017, an increase of 188%
compared to the prior year fourth quarter amount of $1.7 million. For 2017, revenue, net of
royalties was $12.6 million compared
to $8.6 million in 2016.
"Average netbacks for the fourth quarter of 2017 were
$29.81 per BOE, an increase of 42%
compared to the prior year fourth quarter due to higher prices and
production. For the year, average netbacks were $25.49 per BOE in 2017, an increase of 52%
compared to 2016. If we include the impact of the realized
gains from the commodity hedging contracts, our average netbacks
for 2017 were $29.39 per BOE,
compared to $27.70 per BOE in
2016.
"The Company recorded a net loss of $1.3
million in the fourth quarter of 2017, due to a $2.1 million unrealized loss on commodity
contracts, compared to a net loss of $3.7
million in the fourth quarter of 2016. For 2017, the
Company had a net loss of $1.6
million, compared to a net loss of $11.1 million in
2016."
|
Fourth
Quarter
|
|
Year
Ended
|
|
2017
|
2016
|
%
|
2017
|
2016
|
%
|
|
|
|
|
|
|
|
Net Loss:
|
|
|
|
|
|
|
$
Thousands
|
$(1,303)
|
$(3,745)
|
-%
|
$(1,596)
|
$(11,148)
|
-%
|
$ per common
share
|
$(0.01)
|
$(0.02)
|
-%
|
$(0.01)
|
$(0.06)
|
-%
|
assuming
dilution
|
|
|
|
|
|
|
Funds from continuing
operations
|
$2,834
|
$511
|
455%
|
$6,522
|
$4,926
|
32%
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$302
|
$1,751
|
(83%)
|
$19,271
|
$2,497
|
672%
|
|
|
|
|
|
|
|
Average Production
(Boepd)
|
1,539
|
661
|
133%
|
1,092
|
1,045
|
4%
|
Gross
Revenue
|
6,410
|
2,258
|
184%
|
16,150
|
11,084
|
46%
|
Average Product Price
per Barrel
|
$45.27
|
$37.13
|
22%
|
$40.52
|
$28.98
|
40%
|
Average Netback per
Barrel
|
$29.81
|
$20.97
|
42%
|
$25.49
|
$16.76
|
52%
|
Average Price per
Barrel including Commodity Contracts
|
$45.92
|
$47.56
|
(3%)
|
$44.42
|
$39.92
|
11%
|
Average Netback per
Barrel including Commodity Contracts
|
$30.46
|
$31.40
|
(3%)
|
$29.39
|
$27.70
|
6%
|
|
|
|
|
|
|
|
December
2017
|
|
December
2016
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$521
|
|
$11,101
|
Working
Capital
|
|
($537)
|
|
$10,640
|
Year Ended 2017 to Year Ended 2016
For 2017, oil and gas revenues net of royalties increased
$4,013,000 or 47% to $12,591,000. Oil revenues before royalties
increased by 52% to $13,714,000 due
to a 25% increase in prices between years and a 22% increase in
production. Natural gas revenues before royalties increased
$17,000 or 2% due to a 31% increase
in natural gas prices per mcf partially offset by a 22% decrease in
average production. NGL revenue before royalties increased
$343,000 or 28% due to a 64% increase
in average prices partially offset by a 22% decrease in
production.
Exploration and evaluation expenses decreased $832,000. The 2016 amount includes an
impairment of $835,000 on exploration
and evaluation leases.
Operating expenses increased by $263,000 due to an increase in production due to
the new wells, an increase in production taxes and additional water
hauling costs earlier in the year for the wells impacted by the
offset fracture stimulation operations.
Depletion and depreciation expense increased $247,000 due to increased production.
General and administrative expenses decreased $24,000 due to the Company's continued cost
cutting efforts partially offset by advisor fees in 2017.
Finance income decreased $2,497,000 due to higher realized gains on risk
management contracts in 2016 of $4,184,000, compared to $1,556,000 in 2017. Finance expense
decreased $7,072,000 due to a
decrease in unrealized losses on risk management contracts of
$6,843,000.
Capital expenditures of $19,271,000 were incurred in 2017 for drilling
and completion costs in Oklahoma
during the year.
FOURTH QUARTER HIGHLIGHTS:
- Funds from continuing operations was $2.8 million in the fourth quarter of 2017
compared to $0.5 million in the prior
year fourth quarter, an increase of 455%, due to the increased
production from the three additional wells drilled during 2017 and
higher prices
- Revenue, net of royalties, was $5.0
million for fourth quarter 2017, an increase of 188%
compared to the fourth quarter 2016 due to higher prices and
increased production
- Average netbacks for the fourth quarter of 2017 were
$29.81, an increase of 42% over
fourth quarter 2016 due to price and production increases. If the
realized gains from the commodity contracts are included, the
average netbacks for the fourth quarter of 2017 are $30.46 per BOE compared to $31.40 per BOE for the fourth quarter of
2016
- Average production for the quarter was 1,539 BOEPD, an increase
of 133% compared to the prior year fourth quarter mainly due to the
increased production from the three additional wells drilled during
2017 and higher prices
- In December 2017, the commitment
amount on the BOK credit facility was increased by $5 million to $30.0
million. As of December 31,
2017, the US subsidiary had borrowed $25.0 million of the commitment amount and has an
available borrowing capacity of $5.0
million.
- G&A expense increased by $153,000, or 18%, due primarily to advisor fees
incurred in 2017
- A net loss of $1.3 million was
incurred in the fourth quarter 2017 due to unrealized losses on
commodity contracts of $2.1
million
Fourth Quarter 2017 to Fourth Quarter 2016
Oil and gas revenues net of royalties totaled $5,043,000 in the quarter versus $1,750,000 in the fourth quarter of 2016, an
increase of 188%. Oil revenues were $5,572,000 in the quarter versus $1,910,000 in the fourth quarter of 2016, an
increase of 192% due to increased production of 156% and an
increase in average oil prices of 14%. Natural gas revenues
increased 93% due to an increase in production of 90% in addition
to an increase in natural gas prices of 1%. NGL revenue
increased 171% to $578,000 as average
NGL production increased by 82% and by an average price increase of
49%.
Exploration and evaluation expenses decreased $832,000 in 2017 compared to 2016. The 2016
amount includes an impairment of $835,000 on exploration and evaluation
leases.
Operating expenses increased by $346,000 in the fourth quarter of 2017 compared
to 2016 due to additional production and an increase in production
taxes.
Depletion and depreciation expense increased $1,025,000 due to increased production.
General and administrative expenses increased $153,000 between quarters due primarily to
advisor fees in 2017.
BNK PETROLEUM
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited, Expressed
in Thousands of United States Dollars)
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
521
|
$
|
11,101
|
|
Trade and other
receivables
|
|
2,510
|
|
1,163
|
|
Deposits and prepaid
expenses
|
|
563
|
|
614
|
|
Fair value of
commodity contracts
|
|
-
|
|
650
|
|
|
3,594
|
|
13,528
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property, plant and
equipment
|
|
147,195
|
|
133,476
|
|
|
|
|
|
Total
assets
|
$
|
150,789
|
$
|
147,004
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Trade and other
payables
|
$
|
3,132
|
$
|
2,888
|
|
Fair value of
commodity contracts
|
|
999
|
|
-
|
|
|
4,131
|
|
2,888
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
Fair value of
commodity contracts
|
|
951
|
|
1,417
|
|
Loans and
borrowings
|
|
24,484
|
|
20,229
|
|
Asset retirement
obligations
|
|
950
|
|
785
|
|
|
26,385
|
|
22,431
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Share
capital
|
|
289,522
|
|
289,549
|
|
Contributed
surplus
|
|
22,406
|
|
22,195
|
|
Deficit
|
|
(191,655)
|
|
(190,059)
|
Total
equity
|
|
120,273
|
|
121,685
|
|
|
|
|
|
Total equity and
liabilities
|
$
|
150,789
|
$
|
147,004
|
BNK PETROLEUM
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(Unaudited,
expressed in Thousands of United States dollars, except per
share amounts)
|
|
|
|
Three months
ended
December
31
|
|
Year ended
December
31
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenue:
|
|
|
|
|
|
|
|
|
Oil and natural gas
revenue, net
|
$
|
5,043
|
$
|
1,750
|
$
|
12,591
|
$
|
8,578
|
Other
income
|
|
(39)
|
|
(19)
|
|
13
|
|
(17)
|
|
|
5,004
|
|
1,731
|
|
12,604
|
|
8,561
|
Expenses:
|
|
|
|
|
|
|
|
|
Exploration and
evaluation
|
|
3
|
|
835
|
|
3
|
|
835
|
Production and
operating
|
|
821
|
|
475
|
|
2,431
|
|
2,168
|
Depletion and
depreciation
|
|
1,893
|
|
868
|
|
5,496
|
|
5,249
|
General and
administrative
|
|
1,011
|
|
858
|
|
3,736
|
|
3,760
|
Share based
compensation
|
|
49
|
|
105
|
|
180
|
|
611
|
|
|
3,777
|
|
3,141
|
|
11,846
|
|
12,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
|
91
|
|
634
|
|
1,582
|
|
4,184
|
Finance
expense
|
|
(2,495)
|
|
(2,674)
|
|
(3,028)
|
|
(10,100)
|
|
|
|
|
|
|
|
|
|
Net income/loss
and
comprehensive income/loss from
continuing operations
|
$
|
(1,177)
|
$
|
(3,450)
|
$
|
(688)
|
$
|
(9,978)
|
|
Net loss and
comprehensive loss from
discontinued operations
|
|
(126)
|
|
(295)
|
|
(908)
|
|
(1,170)
|
Net loss and
comprehensive loss
|
$
|
(1,303)
|
$
|
(3,745)
|
$
|
(1,596)
|
$
|
(11,148)
|
|
|
|
|
|
|
|
|
|
Net income/loss per
share
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
(0.01)
|
|
(0.02)
|
|
(0.00)
|
|
(0.05)
|
|
Discontinued
operations
|
|
(0.00)
|
|
(0.00)
|
|
(0.00)
|
|
(0.01)
|
|
Basic and
Diluted
|
$
|
(0.01)
|
$
|
(0.02)
|
$
|
(0.01)
|
$
|
(0.06)
|
BNK PETROLEUM
INC.
|
FOURTH QUARTER AND
YEAR ENDED 2017
|
(Unaudited,
expressed in Thousands of United States dollars, except as
noted)
|
|
|
|
4th
Quarter
|
|
Year Ended Dec.
31
|
|
|
2017
|
2016
|
|
2017
|
2016
|
Oil revenue before
royalties
|
$
|
5,572
|
1,910
|
|
13,714
|
9,008
|
Gas revenue before
royalties
|
|
260
|
135
|
|
846
|
829
|
NGL revenue before
royalties
|
|
578
|
213
|
|
1,590
|
1,247
|
|
|
6,410
|
2,258
|
|
16,150
|
11,084
|
|
|
|
|
|
|
|
Funds from continuing
operations
|
|
2,834
|
511
|
|
6,522
|
4,926
|
Additions to
property, plant & equipment
|
|
(302)
|
(1,751)
|
|
(19,271)
|
(2,497)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistics:
|
|
4th
Quarter
|
|
Year Ended Dec.
31
|
|
|
2017
|
2016
|
|
2017
|
2016
|
Average oil
production (Bopd)
|
|
1,137
|
445
|
|
761
|
622
|
Average natural gas
production (mcf/d)
|
|
1,119
|
588
|
|
873
|
1,116
|
Average NGL
production (Boepd)
|
|
215
|
118
|
|
185
|
237
|
Average production
(Boepd)
|
|
1,539
|
661
|
|
1,092
|
1,045
|
Average oil price
($/bbl)
|
|
$53.26
|
$46.63
|
|
$49.34
|
$39.59
|
Average natural gas
price ($/mcf)
|
|
$2.52
|
$2.50
|
|
$2.66
|
$2.03
|
Average NGL price
($/bbl)
|
|
$29.17
|
$19.61
|
|
$23.54
|
$14.36
|
|
|
|
|
|
|
|
Average price per
barrel
|
|
$45.27
|
$37.13
|
|
$40.52
|
$28.98
|
Royalties per
barrel
|
|
9.66
|
8.35
|
|
8.93
|
6.55
|
Operating expenses
per barrel
|
|
5.80
|
7.81
|
|
6.10
|
5.67
|
Netback per
barrel
|
|
$29.81
|
$20.97
|
|
$25.49
|
$16.76
|
|
|
|
|
|
|
|
Average price per
barrel including commodity contracts
|
|
$45.92
|
$47.56
|
|
$44.42
|
$39.92
|
Royalties per
barrel
|
|
9.66
|
8.35
|
|
8.93
|
6.55
|
Operating expenses
per barrel
|
|
5.80
|
7.81
|
|
6.10
|
5.67
|
Netback per barrel
including commodity contracts
|
|
$30.46
|
$31.40
|
|
$29.39
|
$27.70
|
The information outlined above is extracted from and should be
read in conjunction with the Company's audited financial statements
for the year ended December 31, 2017
and the related management's discussion and analysis thereof,
copies of which are available under the Company's profile at
www.sedar.com.
NON-GAAP MEASURES
Netback per barrel and netback including commodity contracts,
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.
CAUTIONARY STATEMENTS
In this news release and the Company's other public
disclosure:
(a)
|
The Company's natural
gas production is reported in thousands of cubic feet
("Mcfs"). The Company also uses references to barrels
("Bbls") and barrels of oil equivalent ("Boes") to
reflect natural gas liquids and oil production and sales. 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.
|
|
|
(b)
|
Discounted and
undiscounted net present value of future net revenues attributable
to reserves do not represent fair market value.
|
|
|
(c)
|
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.
|
|
|
(d)
|
The Company discloses
peak and 30-day initial production rates and other short-term
production rates. Readers are cautioned that such 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.
Caution Regarding Forward-Looking Information
This release contains forward-looking information including
estimates of reserves, the proposed timing and expected results of
exploratory and development work including production from the
Company's Tishomingo field,
Oklahoma acreage, the future
performance of wells including following shut-in's and restart of
well(s), the expected effects of cost reduction efforts,
availability of funds from the Company's reserves based loan
facility and the Company's strategy and objectives. The use of any
of the words "target", "plans", "anticipate", "continue",
"estimate", "expect", "may", "will", "project", "should", "believe"
and similar expressions are intended to identify forward-looking
statements.
Such forward-looking information is based on management's
expectations and assumptions, including that the Company's geologic
and reservoir models and analysis will be validated, that
indications of early results are reasonably accurate predictors of
the prospectiveness of the shale intervals, that previous
exploration results are indicative of future results and success,
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, that design and performance improvements
will reduce development time and expense and improve productivity,
that discoveries will prove to be economic, that anticipated
results and estimated costs will be consistent with managements'
expectations, that all required permits and approvals and the
necessary labor and equipment will be obtained, provided or
available, as applicable, on terms that are acceptable to the
Company, when required, that no unforeseen delays, unexpected
geological or other effects, 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
demand for oil and gas will be sustained, that the Company will
continue to be able to access sufficient capital through
financings, credit facilities, farm-ins or other participation
arrangements to maintain its projects, that the Company will
continue in compliance with the covenants under its reserves-based
loan facility and that the borrowing base will not be reduced, that
funds will be available from the Company's reserves based loan
facility when required to fund planned operations, that the Company
will not be adversely affected by changing government policies and
regulations, social instability or other political, economic or
diplomatic developments in the countries in which it operates and
that global economic conditions will not deteriorate in a manner
that has an adverse impact on the Company's business and its
ability to advance its business strategy.
Forward looking information involves significant known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated. These risks include,
but are not limited to: any of the assumptions on which such
forward looking information is based vary or prove to be invalid,
including that the Company's geologic and reservoir models or
analysis are not validated, anticipated results and estimated costs
will not be consistent with managements' expectations, 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), the risk of
commodity price and foreign exchange rate fluctuations, risks and
uncertainties associated with securing the necessary regulatory
approvals and financing to proceed with continued development of
the Tishomingo Field, 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 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 will cease to be in compliance with the covenants
under its reserves-based loan facility and be required to repay
outstanding amounts or that the borrowing base will be reduced
pursuant to a borrowing base re-determination determination and the
Company will be required to repay the resulting shortfall, that the
Company is unable to access required capital, that funding is not
available from the Company's reserves based loan facility at the
times or in the amounts required for planned operations, 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 identified
in the Company's most recent Annual Information Form under the
"Risk Factors" section, the Company's most recent management's
discussion and analysis and the Company's other public disclosure,
available under the Company's profile on SEDAR at
www.sedar.com.
With respect to estimated reserves, the evaluation of the
Company's reserves is based on a limited number of wells with
limited production history and includes a number of assumptions
relating to factors such as availability of capital to fund
required infrastructure, commodity prices, production performance
of the wells drilled, successful drilling of infill wells, the
assumed effects of regulation by government agencies and future
capital and operating costs. All of these estimates will vary from
actual results. Estimates of the recoverable oil and natural gas
reserves attributable to any particular group of properties,
classifications of such reserves based on risk of recovery and
estimates of future net revenues expected therefrom, may vary. The
Company's actual production, revenues, taxes, development and
operating expenditures with respect to its reserves will vary from
such estimates, and such variances could be material. In
addition to the foregoing, other significant factors or
uncertainties that may affect either the Company's reserves or the
future net revenue associated with such reserves include material
changes to existing taxation or royalty rates and/or regulations,
and changes to environmental laws and regulations.
Although the Company has attempted to take into account
important factors that could cause actual costs or results to
differ materially, there may be other factors that cause actual
results not to be as anticipated, estimated or intended. There can
be no assurance that such statements will prove to be accurate as
actual results and future events could differ materially from those
anticipated in such statements. The forward-looking information
included in this release is expressly qualified in its entirety by
this cautionary statement. Accordingly, readers should not place
undue reliance on forward-looking information. The Company
undertakes no obligation to update these forward-looking
statements, other than as required by applicable law.
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. 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.
SOURCE BNK Petroleum Inc.