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UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE
A VIOLATION OF U.S. SECURITIES LAWS.
CALGARY, Sept. 18 /CNW/ - BNP Resources Inc. ("BNP") is pleased to provide
an update on its progress and future plans in the Jensen area.
JENSEN PROJECT - BNP'S FIRST YEAR OF PROGRESS:
- Drilled the Jensen Discovery well 16-5-3-20 W4M in September, 2007.
- Drilled three subsequent follow up wells including one Pre-Cambrian
test, to the end of July, 2008.
- Reprocessed and reviewed 45 square miles of 3-D seismic data over the
Jensen pool and surrounding area.
- Completed, equipped and commenced production of the 16-5 Jensen
- Tied-in the second Jensen well at 2-8; production to commence later
- GLJ Petroleum Consultants ("GLJ") prepared a report dated March 14,
2008 and effective December 31, 2007 assigning an original oil in
place of 1.1 million barrels of oil per LSD (one legal sub division
equals 40 acres) associated with the 16-5 and 2-8 wells drilled and
completed in 2007. In total 7 LSD's were reviewed by GLJ.
- Completed the necessary surface negotiations for six new drilling
locations and associated tie-ins, including an area Environmental
Protection Plan. This was completed between April and June when the
area was not accessible.
- Completed an independent Engineering Study of the Jensen pool and
nearby Madison oil pools.
- The foregoing study resulted in the implementation of a
de-waxing/de-scaling chemical treatment program for the 16-5 well.
Initial daily production rates during the first week following the
chemical treatment program have been enhanced by up to 400% over the
previous scaled off restricted wellbore fluid entry rates. The 16-5
daily oil production has averaged 10 BOE/D during the week following
the chemical treatment from the current 8m perfed porosity interval.
The better porosity intervals in the 16-5 well have yet to be
completed. It is expected that better porosity intervals will have
higher associated daily rates and as completions progress on the
existing wells, a higher representative range of daily oil rates per
well will be established. This chemical treatment will become a
routine part of the operational upkeep of the Jensen wells.
- Visited the production facilities of the Reagan Madison Pool during a
field trip to Montana. The Reagan pool, discovered in 1947, is
located about 12 miles south of Jensen on the same fault trend, with
a cumulative oil production to date of over 10.0 million barrels of
light oil and continues to produce to this day. Discussions with the
operators of the Reagan pool concerning operational and completion
techniques confirmed the findings of our independent engineering
report as well as our plans for the Jensen pool going forward.
- Improved the road access in the Jensen area to facilitate the
trucking of oil emulsion to market.
JENSEN GOING FORWARD:
- Complete and test the two existing Jensen BNP wells, 5-4 and 11-8.
- Tie-in and initiate production from all four Jensen wells.
- Drill up to five more vertical wells, which will result in one well
on each prospective quarter section.
- Evaluate infrastructure optimization and a 40 acre infill
development drilling program.
- Consider horizontal drilling technology.
- Further evaluate uphole and deeper prospective horizons.
Please be advised BNP has provided a further Jensen update on BNP's
website at www.bnpresources.com.
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".
Further information with regards to BNP may be found on the SEDAR website
www.sedar.com or on BNP's website www.bnpresources.com.
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