BNK Petroleum Inc. (TSX: BKX)
CALGARY, Sept. 18 /CNW/ - BNK Petroleum Inc. (BNK) is pleased to announce
its progress in the Tishomingo field drilling program.
- Drilled and set casing on 24 wells and has 4 wells still drilling. Of
these wells, 24 are horizontal, 4 are vertical and BNK is operator of
19 of them.
- Executed a letter of intent with Atlas Pipeline Mid-Continent, LLC
(Atlas) for the purchase and processing of BNK's gas.
- Atlas installed a processing plant with a capacity of 15 million
cubic feet a day (mmcf/d) currently constrained to 4 mmcf/d, by NGPL
- BNK to tie in the Tishomingo Field gathering system to Atlas' Velma
to Madill wet gas gathering line. BNK intending on sending gas to
Atlas' Velma Cryogenic processing plant in 1st quarter of 2009.
- Signed gas sales contract with Chesapeake Energy Marketing, Inc.
- 1st gas scheduled to be delivered to Chesapeake by Sept 22nd 2008.
- NGPL meter restriction expected to be removed by October 1st 2008.
In summary there is currently about 29 mmcf/d of processing capacity for
the Tishomingo Field available by next week with another 17 mmcf/d available
once the NGPL meter upgrade is complete. With this processing capacity in
place BNK can proceed to complete its wells and process the gas produced as
the rest of the gathering system is installed to connect to all the wells in
- Only six of the wells in the 2008 drilling program have been fracture
- All wells to date have been facility constrained.
- The Dunn 2-1H, has produced over 155 (mmcf) of gas, 13,000 barrels of
oil and approximately 7,700 barrels of Natural Gas Liquids (NGLS) to
- The Barnes 6-1H well has recovered about 33% of its fracture
stimulation fluids, is producing about 60 barrels of oil per day
(BOPD) and an unknown amount of gas.
- The Sapp 11-1H well is still recovering fracture stimulation fluids
and does not have a production rate yet.
- The Barnes 7-1H well was tested with a modified fracture stimulation
technique and tested only about one-third of the total horizontal
wellbore. The well is currently producing about 95 bopd, 650 mcf/day
of gas and 32 bpd of NGLS.
- The Sapp 3-1H is scheduled to be fracture stimulated within the next
10 days utilizing the modified technique.
- In addition to the above completions two of BNK's non-operated
interest wells are currently flowing back after fracture
- The fracture stimulated wells from the 2007 program are currently
producing within the restricted capacity of the processing
"I am happy to report that our team has made this excellent progress in
developing this project, said Wolf Regener, BNK's President and C.E.O."
BNK is also pleased to announce that it has acquired 1,040 net mineral
acres immediately adjoining its current acreage block in its Tishomingo Field
located in Carter and Johnston Counties, Oklahoma. Approximately 863 net
mineral acres were acquired by purchase and about 177 acres were acquired
through farmout agreements. In order to retain the farmout acreage BNK is
obligated to begin drilling its first well by October 22, 2008, in addition to
certain other wells per the terms of the farmout agreements. BNK also acquired
an additional 40% of the vertically drilled Onella Hartwell No. 1-19 well,
bringing its total working interest in this well to about 50%. BNK expects to
complete this well in the Woodford later in 2008.
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, 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.
Certain statements contained herein may constitute forward-looking
statements. These statements relate to future events or our future
performance. All statements other than statements of historical fact may be
forward-looking statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements.
We believe that the expectations reflected in the forward-looking statements
are reasonable based upon management's current views but no assurance can be
given that these expectations will prove to be correct and such
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speak only as of the date hereof. We do not intend, and do not assume any
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changes in plans with respect to exploration and development projects, success
of exploration and development activities, general industry and market
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For further information:
For further information: Wolf Regener, President and Chief Executive
Officer, (805) 484-3613; C.S. (Juneyt) Tirmandi, Chief Financial Officer,
(403) 541-5319; Email: email@example.com; Website: