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CALGARY, March 24, 2014 /CNW/ - BNP Resources Inc. ("BNP" or the "Corporation") would like to announce that the company has received a termination notice from the private company, and the sale of the Jensen wellbores will not proceed. We were unable to get an acceptable leaseholder deal between the owner of the freehold leases and the private company. The freehold leaseholder required a drilling commitment and a deposit from the private company, in order to issue the lease. BNP no longer hold the Jensen leases as we had insufficient funds on hand to make payment. This leaves the company without a lease for the Jensen facilities. It is anticipated that the freehold leaseholder and the AER will be proceeding with abandonment orders for our Jensen wellbores and pipelines, over the next 2-6 months.
Our options going forward are as follows:
- Option 1 - Find a new partner that will purchase the wellbores, make the necessary drilling commitments and post a security deposit sufficient to obtain a new lease from the freehold leaseholder.
- Option 2 - Find a new partner that will purchase the wellbores, build a water disposal plant, install heater / treater, pumping equipment and obtain a new lease from the freehold leaseholder.
The management of BNP are committed to finding a solution that will benefit all stakeholders including the freehold leaseholder, the AER, our shareholders and creditors. This may take a little more time than initially anticipated and your patience and understanding is appreciated.
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.