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CALGARY, Feb. 18 /CNW/ - BNP Resources Inc. ("BNP" or the "Corporation") is pleased to announce further completion results done to date under our November 2009 farmout at Jensen. "Privco", the private company who farmed in on BNP at Jensen has completed the 5-4-3-20 W4M well. Upon tie-in of this well, Privco and BNP will each have a 50% working interest in the 16-5 and 5-4 wells.
After completing a 30m interval in the previously uncompleted pay zone of 05-04, Privco has perforated, acid stimulated and aggressively swab evaluated the pay zone. The 05-04 zone is capable of 1000-1200 bbls fluid a day with oil cuts ranging from 5-20%. During the 05-04 eight-hour swab test, the more aggressively the formation was produced, the oil cuts correspondingly improved to +20% with high fluid rate extraction. Based on the swab results, 05-04 would be capable of producing in excess of 100 bbls of oil per day with the implementation of high volume pumping equipment. Currently, BNP is considering a water injection application and injectivity test for the downdip 11-8-3-20 W4M, which will be the future water disposal site.
The 16-5-3-20 W4M well, which is unstimulated, is currently producing at approximately 35 bbls of fluid per day. We are waiting on the oil cut to stabilize. The stabilized rate will be announced when it has been determined. Even though the rate has decreased from the rate announced on January 25, 2010, we are confident that production could be dramatically increased if the same 05-04 acid stimulation program was applied, and BNP is reviewing that option.
"Our plan was to compare the two styles of completion-unstimulated for 16-5 and stimulated for 5-4," says Gregory Bilcox, President and CEO of BNP. "This gave us a good comparison and answered the question of how to maximize daily oil rate from these and future Jensen wells. The completion results at 5-4 have confirmed the potential of the Jensen pool. Once water disposal is in place, we look forward to proceeding with our development drilling program."
In addition, the previously announced Letter of Intent to merge with L1 Capital Corp. has been terminated by mutual agreement between the parties.
BNP is actively engaged in the exploration for and the development and production of oil and natural gas reserves. BNP's business strategy is to build sustainable and profitable per share growth through internally generated exploration and development drilling.
BNP has approximately 25,035,834 Class A shares and 922,500 Class B shares issued and outstanding which trade on the TSX Venture Exchange under the symbols "BNX.A and "BNX.B".
ADVISORY: This press release may contain forward-looking statements including management's assessment of future plans and operations and expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: 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 or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The forward-looking statements contained in this press release are made as of the date hereof and BNP undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the TSX Venture Exchange nor Its Regulation Services Provider (as the term is defined In the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE BNP Resources Inc.
For further information: For further information: Gregory Bilcox, President and CEO, BNP Resources Inc., Phone: (403) 695-1091, Fax: (403) 265-0413