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CALGARY, July 8 /CNW/ - BNP Resources Inc. ("BNP" or the "Corporation")
is pleased to report the following operational updates.
BNP's work in the Jensen area was interrupted earlier this year by an
early breakup and a wet spring. BNP is pleased to advise that additional
completion work on the deeper zones in the 5-4-3-20 W4M well has been
undertaken. Swab results recovered light oil (34 API) from a new zone
downhole. The zone is currently being evaluated. This is a potential new light
oil zone beneath the existing Madison oil discovery.
BNP is in the process of completing some work on the Madison oil producer
at 16-5-3-20 W4M to enhance daily oil production rates. Initial results are
encouraging and will be released as available.
BNP has acquired surface access approvals for 6 additional wells in the
Jensen pool. The first well has been licensed. Drilling is expected to
commence in mid July. The plan is to have all 6 additional BNP 100% wells
drilled prior to year end in the Jensen pool.
BNP is in the process of tying in the Madison oil well 2-8-3-20 W4M at
Jensen. Pipeline right of ways have also been approved for the additional
drilling planned for 2008.
Elsewhere, in South Central Alberta BNP has tied-in and/or equipped 5 BNP
wells since spring breakup, all 100% BNP, for an additional initial production
add of over 100 boep/d. Several BNP wells have uphole potential that have yet
to be evaluated. Exploitation of these opportunities and additional tie-ins
continues. BNP will further report on production increases as information
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 16,556,244 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