BNP Resources Inc. announces 2007 second quarter results



    CALGARY, Aug. 29 /CNW/ - BNP Resources Inc. ("BNP" or the "Corporation")
announces its financial and operational results for the three and six month
periods ended June 30, 2007.

    During the quarter ended June 30, 2007, BNP:

    -   Drilled, cased and completed three wells, all 100% working interest
        to BNP:
        -  The first well underwent a production test of 25 barrels of oil
           equivalent per day ("boepd") and was being prepared to commence
           production on July 1st.
        -  The second well underwent a three day production flow test
           averaging 710 thousand cubic feet per day (approximately 118 boepd
           at a conversion ratio of 6:1). Actual production volumes will be
           determined once the well is equipped, tied in and on production.
        -  The third well underwent a 21 hour swab test over a three day
           period, resulting in an extrapolated average of 140 boepd. Actual
           production volumes will be determined once the well is equipped,
           tied in and on production, which the Corporation is endeavoring to
           do as soon as possible.

    -   Commenced the drilling of a fourth well in Alberta, 70% working
        interest to BNP, which was subsequently abandoned in the third

    -   Increased its gross acres under option or lease to approximately

    -   Expended approximately $1.8 million of qualifying flow through
        expenditures bringing the total amount spent to the end of June to
        approximately $4.0 million.

    Subsequent to June 30, 2007, BNP:

    -   Commenced initial production in South Central Alberta and
        Southeastern Saskatchewan, on July 1st, from two wells with a
        combined production level of 70 barrels of oil equivalent per day

    -   Commenced initial production, on August 14th, from the Medicine River
        area well, previously anticipated to be on production by July 1st, at
        a rate of approximately 30 boepd.

    -   Drilled 2 wells in Alberta and Saskatchewan, one of which was in the
        Peace River Arch area, which has been drilled, cased, completed, and
        is currently in the process of being production tested. The second
        well was relinquished due to operational drilling difficulties, prior
        to penetrating the targeted zone, which the Corporation determined
        were too costly to remedy.

    -   On August 2, 2007, the Corporation announced that it had entered into
        an agreement with Acumen Capital Finance Partners Limited ("Acumen")
        to issue up to 2,381,000 Class A Shares on a "flow through" basis
        (the "Flow-Through Shares") by way of private placement at a price of
        $0.84 per share, for gross proceeds of up to $2,000,040.
        In addition, BNP agreed to grant Acumen an over-allotment option
        exercisable prior to closing, of up to 2,381,000 Flow-Through Shares
        at the same price, for additional gross proceeds of up to $2,000,040,
        which would increase the Offering to $4,000,080, if fully exercised.
        Proceeds from the offering will be used to incur qualifying
        expenditures to fund BNP's ongoing exploration drilling program in
        its core focus areas.

    -   The Corporation currently has licensed or in the process of licensing
        7 wells which it anticipates will be drilled during the remainder of
        the year.

    BNP continues to position itself for success and remains focused on
growing its production and reserves to deliver significant shareholder value.

    As at August 28, 2007, the Corporation has made significant progress and

    -   A cumulative daily initial production rate from the wells drilled and
        on production to date of approximately 100 boepd.

    -   A combined total estimated sustainable initial production rate of
        between 200 and 250 boepd. Actual production levels will be
        determined once the two cased wells are equipped, tied in and
        producing, anticipated to be by the end of the third quarter of 2007.

    -   Approximately 40,000 gross acres under option or lease.

    -   Spent approximately $5.5 million on qualifying CEE leaving
        approximately $4.75 to be spent by December 31, 2007.

    -   A planned drilling program of approximately 15 to 20 wells for 2007,
        7 of which have been drilled to date, and another 7 of which have
        been or are in the process of being licensed. Of the 7 wells drilled
        to date, 3 are on production, 2 are in the process of being
        production tested, one was abandoned and one was relinquished as a
        result of operational drilling difficulties, prior to penetrating the
        targeted zone. This latter well has the potential to be redrilled at
        a later date. The Corporation has determined it would require at
        least one additional financing to accommodate the full drilling
        program. On August 2, 2007, BNP announced it had engaged Acumen to
        commence this financing.

    The management and Board of Directors continue to be excited about the
growth to date of BNP through the drill bit and the potential growth for the
remainder of 2007.

    BNP is actively engaged in the exploration for, the development and
production of, natural gas and oil reserves. BNP's business strategy is to
build sustainable and profitable per share growth through selective
acquisitions and internally generated exploration and development drilling.
    BNP has approximately 8,500,000 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".
    The entire June 30, 2007, Financial Statements, Notes and Management
Discussion and Analysis may be found on the SEDAR website or on
the Corporation's website

    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
securities laws.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    BNP Resources Inc.
    Interim Balance Sheet

                                                       June 30,  December 31,
                                                          2007          2006
                                                             $             $

    Current assets
    Cash                                             5,713,603     9,142,243
    Receivables, prepaid expenses and other            213,622       214,647

                                                     5,927,225     9,356,890

    Future income tax                                        -       334,836

    Property and equipment                           5,759,042     1,866,568

                                                    11,686,267    11,558,294


    Current liabilities
    Accounts payable and accrued liabilities         1,561,079       849,877

    Asset retirement obligation                        239,591        91,211

    Future income tax liability                      2,826,463             -

                                                     4,627,133       941,088
    Shareholders' Equity

    Share capital                                    7,385,106    10,675,356

    Contributed surplus                                 59,888        31,983

    Deficit                                           (385,860)      (90,133)

                                                     7,059,134    10,617,206

                                                    11,686,267    11,558,294

    BNP Resources Inc.
    Interim Statement of Loss, Comprehensive Loss and Deficit

                                    Three months    Six months   Period from
                                           ended         ended  May 16, 2006
                                         June 30,      June 30,   to June 30,
                                            2007          2007          2006
                                               $             $             $

    Interest income                       71,161       159,380         5,065

    Total net revenue                     71,161       159,380         5,065

    General and administrative costs     164,027       319,851        30,684
    Stock-based compensation              13,957        27,905             -
    Accretion and depreciation             9,061        14,502             -
    Part XII.6 interest expense          125,650       221,800             -

                                         312,695       584,058        30,684

    Loss before income taxes            (241,534)     (424,678)      (25,619)

    Future income tax recovery           (73,962)     (128,951)       (8,326)
    Net loss and comprehensive
     loss for the period                (167,572)     (295,727)      (17,293)

    Deficit - Beginning of period       (218,288)      (90,133)            -

    Deficit - End of period             (385,860)     (385,860)      (17,293)

    Loss per share
    Basic and diluted                    (0.0095)      (0.0167)      (0.0039)

    Weighted average shares
    Basic                             17,725,000    17,725,000     4,400,000

    BNP Resources Inc.
    Interim Statement of Cash Flows

                                    Three months    Six months   Period from
                                           ended         ended  May 16, 2006
                                         June 30,      June 30,   to June 30,
                                            2007          2007          2006
                                               $             $             $

    Cash provided by (used in)

    Operating activities
    Net loss for the period             (167,572)     (295,727)      (17,293)
    Items not affecting cash
      Future income taxes (recovery)     (73,962)     (128,951)       (8,326)
      Accretion and depreciation           9,061        14,502             -
      Stock-based compensation            13,957        27,905             -

                                        (218,516)     (382,271)      (25,619)

    Change in non-cash
     working capital                    (192,436)     (182,475)         (350)

                                        (410,952)     (564,746)      (25,969)

    Financing activity
    Change in non-cash
     working capital                     125,650       221,800       (19,910)

    Investing activities
    Additions to oil and
     gas properties                   (2,474,963)   (3,669,864)      (85,327)
    Additions to equipment                     -        (6,129)      (41,887)
    Change in non-cash
     working capital                   1,147,059       590,299        93,686

                                      (1,327,904)   (3,085,694)      (33,528)

    Decrease in cash                  (1,613,206)   (3,428,640)      (79,407)

    Cash - Beginning of period         7,326,809     9,142,243     1,100,000

    Cash - End of year                 5,713,603     5,713,603     1,020,593

For further information:

For further information: Gregory Bilcox, President and CEO, BNP
Resources Inc., Phone: (403) 695-1091, Fax: (403) 265-0413; Gordon B. Paul, VP
Finance and CFO, BNP Resources Inc., Phone: (403) 695-1095, Fax: (403)

Organization Profile

BNP Resources Inc.

More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890