BNK Petroleum (BKX-T) getting some added attention.
March 6, '15 - NR
BNK Petroleum is providing the results of its December 31, 2014 independent reserves evaluation.
The evaluation of the Company's reserves in the Caney formation of the Tishomingo Field in Oklahoma was conducted by Netherland Sewell and Associates, Inc. ("NSAI") in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
2014 Gross Reserves Summary
Total Proved Reserves 12 million Barrels of oil equivalent (BOE) an increase of 197% over December 31, 2013 estimate
Proved & Probable Reserves 37.4 million BOE's an increase of 140% over December 31, 2013 estimate
Proved, Probable and Possible Reserves 70.3 million BOE's an increase of 72% over December 31, 2013 estimate
Net Present Value of Reserves discounted at 10%
Total Proved Reserves before tax of U.S. $142.9 million
Proved & Probable Reserves before tax of U.S. $504.5 million
Proved, Probable and Possible Reserves before tax of U.S. $875 million
The above total Proved reserves are attributed to 10 of the wells already drilled and the drilling of 28.9 net additional wells over the next 5 years. The probable reserves are attributed to 1 well already drilled which is awaiting completion and the drilling of 28.3 net additional wells. The wells in this report are planned at 106 acre spacing (6 wells per section) on approximately 10,900 net acres. This is approximately 67 percent of the 16,300 net acres the Company has in this project. The other 33 percent of the acreage is on the easterly side of the Company's acreage and based on data from the Company's historical drilling of the deeper Woodford formation wells, correlated with a 3D seismic survey, the Company anticipates that future wells on its easterly acreage will demonstrate that the Caney is also productive over this easterly acreage.
bnkpetroleum.com
The Company's reserves are derived from non-conventional oil and gas activities. The Company's reserves are contained in a shale oil reservoir from which gas and natural gas liquids are produced as by-products. The reserves described in this news release are categorized based on the product types sold when such reserves are realized. As a result, shale oil is categorized above as "Light and Medium Oil" and its gas by-products are categorized as "Natural Gas" and "Natural Gas Liquids".
These after income tax net present values reflect the tax burden on the Company's Tishomingo Field interests on a standalone basis, do not consider the business-entity-level tax situation, or tax planning and do not provide an estimate of the value at the level of the business entity, which may be significantly different. The financial statements and the management's discussion and analysis (MD&A) of the Company should be consulted for information at the level of the business entity.
Readers are referred to the Company's Form 51-101F1 Statement of Reserves Data and Other Oil & Gas Information for the year ended December 31, 2014, which can be accessed electronically from the SEDAR website at http://www.sedar.com, for additional information.
BOEs/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. 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 provided plus probable plus possible reserves. The present value of estimated future net revenues referred to herein does not represent fair market value.
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 oil and gas properties and concessions in the United States, Poland and Spain. 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.
Wolf E. Regener,
+1-(805)484-3613,
Email: investorrelations@bnkpetroleum.com,
Website: http://www.bnkpetroleum.com
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