CALGARY, Oct. 14 /CNW/ - BNK Petroleum Inc. (the Company/BNK)/(TSX: BKX) is pleased to announce that it has successfully drilled, and run casing to 5,475', in the Hickman Farms 30-15 well. The Pickens County, Alabama well exhibited numerous gas shows while drilling. A full suite of logging tools was run in the well. The log data will be analyzed and interpreted over the coming weeks. It is anticipated that four different zones will be tested for commerciality. The testing is expected to commence in about 30 days.
As previously announced last December, BNK can earn up to a 50 percent working interest from BWB Exploration, LLC, ("BWB") in a portion, or all, of approximately 80,000 acres in the Black Warrior Basin by drilling a series of test wells on identified prospects. The exploration program requires BNK to pay 100 percent of the costs of the test wells. The Hickman Farms 30-15 well is the first of three commitment wells BNK has agreed to drill. If BNK doesn't drill any of the three wells then it may have to pay $500,000 in liquidated damages per well. Additional wells may be drilled if favorable results are obtained from the first three wells. BWB is owned 60 percent by LNG Energy, Ltd. and 40 percent by another independent party.
BNK is continuing its pursuit of additional shale gas concessions in both Eastern and Western Europe, with the goal of having 2 million acres in 4 basins by year's end.
About BNK Petroleum Inc.
BNK Petroleum Inc. is a California based oil and gas exploration and production company focused on finding and exploiting large oil and gas resource plays. The Company holds an average of 50% interest in the Tishomingo gas field in Oklahoma and varied interests in three other areas in the Northern and Central regions of the United States and in Europe, where it is currently pursuing the exploration, development and production of shale and tight sand gas plays. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.
This document contains certain forward looking statements including statements with respect to BNK's drilling plans in the Black Warrior Basin and testing for commerciality. Forward looking information is based on management's expectations regarding, among other things, future capital and other expenditures (including the amount, nature and sources of funding thereof), plans for drilling activity, business prospects and opportunities, and involves significant known and unknown 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 and BNK's ability to identify suitable drilling locations (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), risk associated with equipment procurement and equipment failure, risks related to international operations and doing business in foreign jurisdictions, the risk of commodity price and foreign exchange rate fluctuations, risks related to future royalty rate changes and risks and uncertainties associated with securing and maintaining necessary regulatory approvals. In addition, the current financial crisis has resulted in severe economic uncertainty and resulting illiquidity in credit and capital markets which increases the risk that actual results will vary from forward looking expectations and these variations may be material. Additional risks and uncertainties are described in detail in BNK's Annual Information Form for the year ended December 31, 2008, which is available at www.sedar.com. The Corporation assumes no obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.
The TSX does not accept responsibility for the adequacy or accuracy
of this news release.
SOURCE BNK Petroleum Inc.
For further information: For further information: Wolf Regener, President and Chief Executive Officer, (805) 484-3613, Email: email@example.com, Website: www.bnkpetroleum.com