/THIS DOCUMENT IS NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS./
CALGARY, Feb. 28, 2014 /CNW/ - BNP Resources Inc. ("BNP" or the "Corporation") would like to announce that the company has accepted an offer for the sale of the Jensen wellbores and leases, from a private company for consideration of $200,000, less adjustments and sales commissions. The offer is conditional upon receiving approval from the freehold leaseholders and the Alberta Energy Regulator (AER). The sale is estimated to close on April 1, 2014. No offers were received for the other wellbores.
After closing of the sale and transfer of well licenses, the company will become eligible for the return of approximately $150,000 in deposits from the Alberta Energy Regulator (AER).
A cost estimate was prepared for the development of the Jensen pool. The following is a summary of the proposed costs:
- Option 1 - It was estimated that completion of two vertical wells with a free water knock out drum, heater treater, flare stack and water disposal plant would cost approximately $2.5 million, with an estimated design capacity of 200 barrels of oil per day.
- Option 2 - A single well with a free water knock out drum, heater treater & flare stack would cost approximately $1.0 million to put into service. Estimated design capacity is 100 barrels of oil per day.
- Option 3 - A single well using tank separation & flare stack is estimated to cost approximately $750,000.
Options 2 and 3 would require trucking of the water to a disposal plant. Other opportunities exist within the Jensen to Del Bonita corridor. In order to participate, the company will need to raise approximately $1.5 million by June 2014. The company will also be reviewing other strategic alternatives and hope to be able to provide more direction to the shareholders by June 30, 2014.
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 61,912,151 Class A shares issued and outstanding which trade on the TSX Venture Exchange under the symbols "BNX.A".
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.