/THIS DOCUMENT IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED
STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS./
CALGARY, Aug. 28 /CNW/ - August 28, 2008: BNP Resources Inc. ("BNP" or
the "Corporation") is pleased to announce its financial and operational
results for the period ending June 30, 2008.
Key Highlights from January 1 to June 30, 2008:
- Equipped and tied in five wells (four gas and one oil) in the South
Central Alberta region, with produced and sold volumes for the month
of June 2008, of 46 boepd, bringing June's average produced and sold
volumes to approximately 60 boepd.
- Drilled and cased the 5-4-3-20 W4M well in the Jensen pool to a total
depth of 2381m and encountered an oil pay column of approximately 30m
based on log analysis at a depth of approximately 1300m in the
Mississippian horizon. This is the third well drilled by BNP in the
Jensen area that has encountered a significant oil pay column. This
well and the previous two wells drilled in 2007, have all encountered
Mississippian light oil and are all BNP 100% working interest. The
Corporation has obtained pressure data from the first two wells and
combined with the well log data and geological structural information
from all three wells, suggests to the Corporation that all three
wells are in a common pool.
- In addition, the 5-4 well encountered multiple prospective deep
zones below the horizon of the original Mississippian discovery.
The first of these zones was completed and flowed gas to surface,
however, it was determined to be uneconomic and therefore this
deeper zone was abandoned. The second deep zone was perfed,
swabbed and abandoned while the third deep zone was perfed,
acidized, swabbed light oil and awaits further evaluation.
- The Corporation continued with its plans to drill further Jensen
wells in order to determine the full extent of the pool and
additional zones of interest. BNP has completed the surface work
necessary to allow the licensing of six additional wells and
associated equip and tie-ins.
- Closed a private placement on February 20, 2008, of Class A shares. A
total of 3,333,334 Class A shares were issued at a price of $1.35 per
share for total aggregate gross proceeds of approximately
- Acquired two more sections at Jensen immediately offsetting the lands
where the Corporation has already drilled wells, and reprocessed
approximately 45 square miles of 3-D seismic data, of which BNP shall
be able to retain copies of approximately 20 square miles of the 3-D
- Produced and sold an average of 42 boepd, and 39 boepd, for the three
and six month periods ended June 30, 2008. BNP Resources Inc.
- Funds used in operations for the three and six month periods ended
June 30, 2008, were $316,267 and $621,046 respectively ($0.013 and
$0.026 per basic share). The Corporation increased its use of funds
over the same periods in 2007, by $97,751 and $156,172, respectively,
from its use of funds for the three and six month periods ended
June 30, 2007, of $218,516, and $464,874, respectively.
- Net loss and comprehensive loss for the three and six month periods
ended June 30, 2008, were $374,713 and $676,882, respectively ($0.015
and $0.028 per basic share) compared to a loss of $167,572 and
$295,727 for the same periods in 2007 ($0.009 and $0.017 per basic
share). The Corporation has not provided the diluted per share
amounts as they would be anti-dilutive in both periods.
- Expended approximately $2.8 million of qualifying flow-through
expenditures for the six month period ended June 30, 2008, leaving
approximately $2.2 million remaining to be spent by the end of 2008.
Subsequent to June 30, 2008, the Corporation:
- Drilled and cased the fourth well in the Jensen area, 11-8-3-20W4M.
Based on log analysis this well has confirmed the northern extension
to the original Mississippian pool discovery. BNP continues its plans
to complete this well prior to the end of the third quarter and will
release more information as it becomes available.
- Finished tie-in of Jensen 2-8-3-20-W4M. Well is being prepared for
- The Jensen 16-5-3-20-W4M well is undergoing chemical treatment to
enhance production rate.
- An independent consulting study and field trips to Montana (including
a visit to the Reagan Field) have provided the Corporation with
additional technical information that will be utilized in future
Jensen well completion programs.
- Elected to drop its option on the remaining 18 sections (11,520 gross
acres) that it has held under option at Jensen. The Corporation is
comfortable, based on extensive 3-D seismic review, that it has
earned the rights to the entire Mississippian pool, including the
rights to the zone below the base of the original Mississippian
discovery made in the 5-4-3-20W4M well. The Corporation now is
focused on developing the remaining spacing units of the 3 sections
(1920 gross acres) that have already been earned.
- As a result of dropping the option on the remaining Jensen lands,
BNP's gross acres were thereby reduced by 11,520 gross acres from
23,444 to 11,924 acres. BNP's 11,028 net acres remain unchanged.
- Two wells in South-Central Alberta were shut-in for further
- Expended approximately $1.1 million of qualifying flow-through
expenditures since June 30, 2008, leaving approximately $1.1 million
remaining to be spent by the end of 2008
- The Corporation is pleased to announce the appointment of Ms. Kitty
Louie, CGA, C.A. as Chief Financial Officer effective August 27,
2008. Ms. Louie comes in with 15 years of public accounting
experience as well as variety of experience in oil and gas and
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 16,436,244 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. Oil equivalent
amounts have been calculated using a conversion rate of six thousand cubic
feet of natural gas to one barrel of 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. 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
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Gregory Bilcox, President and CEO, BNP
Resources Inc., Phone: (403) 695-1091, Fax: (403) 265-0413