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CALGARY, Aug. 15, 2014 /CNW/ - BNP Resources Inc. ("BNP" or the "Corporation") would like to announce that the company has received notification that shares of the company will be transferred to NEX, effective the opening Tuesday, August 12, 2014 and will remain suspended from trading. NEX is a separate board of the TSX Venture Exchange for companies previously listed, which have failed to maintain compliance with the ongoing financial listing standards. NEX has been designed to provide a forum for publically listed shell companies, while they seek and undertake transactions in furtherance of their reactivations as companies which will carry on an active business.
The assets of BNP are the Jensen wellbores, $10 million in tax losses and a $355,000 deposit with the AER, to secure future abandonment of wellbores. Liabilities include a working capital deficiency of approximately $800,000 and abandonment liabilities on 9.5 wells. Note – BNP no longer hold the leases for the Jensen wellbores as funding was not in place to make lease payments. The Jensen project is "shovel ready" pending project funding and new lease approval by freehold leaseholders.
We are actively seeking a new management team to take over the Jensen oil project and or the corporate shell. A design basis, area development plan and production engineers report are available to support development towards 700 barrels per day. Initial capital required is $2.0 million to construct a single well battery with a diesel generator, free water knock out (FWKO) drum, heater treater, storage tanks and a water disposal plant. Recycle ratios for this development work are approximately 2.0. Internal estimates for original oil in place are 10-20 million barrels with a recovery factor of 6%. BNP have developed a new variable flow production technology for use with high water cut Madison wells. This technology (BNP VARI-FLOW) has been developed specifically for use in Madison oil pools and automatically adjusts production output based on wellhead fluid levels. Production is optimized with a fluid level setpoint of "n" meters above the pump, based on production engineer recommendations. Madison oil pools can be optimized using BNP VARI-FLOW pump and control technology, in combination with a FWKO, heater treater and water disposal plant.
Management of BNP believe that an additional 1-2 new Madison oil pools exist within a 25 km radius of the Jensen oil pool. This is an opportunity for a "young and enterprising exploration geologist" interested in "growth by the drill bit". A centralized separation and disposal plant at Jensen would improve the economics for additional Madison oil pools in the area. Fluid from satellite fields would be trucked to a central battery, for separation and processing, thus minimizing capital costs. Three phase power exists along highway 62, near the Jensen field. BNP have developed capital cost estimates to bring three phase power to the Jensen wellsites.
BNP also have a single vertical Bakken test log, from a Precambrian test, done for the Jensen discovery well. This data could be useful to any companies mapping porosity and permeability logs throughout the Bakken play, to determine new drilling locations east of Jensen.
BNP has approximately 61,912,151 Class A shares issued and list on the NEX Exchange under the symbols "BNX.H". The shares are currently suspended.
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: James Evans Doody, President and CEO, BNP Resources Inc., Phone: 403.978.6376