Welcome!

News Feed Item

BNK Petroleum Inc. Announces 2013 Year-end Reserves

CAMARILLO, California, March 4, 2014 /PRNewswire/ --

BNK Petroleum Inc. (the "Company" or "BNK") (TSX: BKX) is providing the results of its December 31, 2013 independent reserves evaluation.

The evaluation of the Company's reserves in the Caney / Upper Sycamore formations of the Tishomingo Field in Oklahoma was conducted by Netherland, Sewell and Associates, Inc. ("NSAI") in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

2013 Gross Reserves Summary

  • Total Proved Reserves: 4 million Barrels of oil equivalents (BOEs)
  • Proved & Probable Reserves: 15.5 million BOEs
  • Proved, Probable and Possible Reserves: 40.9 million BOEs

Net Present Value of Future Net Revenue (before tax, discounted at 10%)

  • Total Proved Reserves: U.S.$71 million
  • Proved & Probable Reserves: U.S.$286 million
  • Proved, Probable and Possible Reserves: U.S.$847 million

These reserves estimates are attributed to the 6 wells already drilled and the assumed drilling of 29 net additional wells for the Proved and Probable reserves and 25 net wells for the Possible reserves at 160 acre spacing (4 wells per section) over the next 4 years. The reserves are allocated to approximately 9,200 net acres in the Company's westerly acreage. This is approximately 63% of the Company's 14,700 net acres in the Tishomingo Field. Based on data from the Company's historical drilling in the deeper Woodford formation correlated with a 3D seismic survey across its entire Tishomingo acreage, the Company anticipates that future wells on its easterly acreage will confirm reserves over its entire acreage. The Company also believes that future well locations will ultimately be able to be further downspaced to increase recoverable reserves.


                                     Summary of Oil & Gas Reserves
                                        Forecast Prices & Costs

                     Light & Medium Oil Natural Gas       Natural Gas
                                                          Liquids         MBOEs
                     BNK                BNK               BNK             BNK
                     Gross    Net       Gross    Net      Gross   Net     Gross    Net
    Reserve Category (Mbbl)   (Mbbl)    (MMcf)  (MMcf)    (Mbbl)  (Mbbl)  (Mbbl)   (Mbbl)
    Proved
         Developed
         Producing    414.3    324.7    666.7    527.0    154.5   122.1   679.9    534.6
         Developed
         Non-
           Producing  321.3    251.2    248.5    194.2    64.7    50.6    427.4    334.2
         Undeveloped  2,188.6  1,728.4  1,692.5  1,336.6  440.8   348.1   2,911.5  2,299.3
    Total Proved      2,924.2  2,304.3  2,607.7  2,057.8  660.0   520.8   4,018.8  3,168.1
    Probable          8,640.4  6,839.1  6,769.6  5,358.1  1,756.6 1.390.4 11,525.3 9,122.5
    Total Proved Plus
    Probable          11,564.6 9,143.5  9,377.3  7,415.9  2,416.6 1,911.2 15,544.1 12,290.6
    Possible          19,077.8 15,378.8 14,752.9 11,892.4 3,842.5 3,097.5 25,379.1 20,458.4
    Total Proved Plus
    Probable
    Plus Possible     30,642.5 24,522.3 24,130.2 19,308.3 6,259.1 5,008.7 40,932.2 32,749.0




                                 Net Present Value of Future Net Revenue
                                        Forecast Prices & Costs

                                Net Present Value of Future Net Revenue ($ millions)
                              Before Income Taxes                     After Income Taxes
    Reserv
    Category            0%      5%    10%    15%    20%       0%     5%    10%   15%   20%

    United States
    Proved
    Developed
    Producing          6.4    22.9   20.5   18.7   17.4     17.4   15.1   13.5  12.2  11.3
    Developed
    Non-Producing     22.3    17.8   14.9   13.0   11.7     14.7   11.6    9.7   8.5   7.6
    Undeveloped       86.4    54.3   35.5   23.8   16.0     57.0   35.8   23.4  15.6  10.5
    Total Proved     135.1    95.0   71.0   55.5   45.0     89.2   62.5   46.6  36.4  29.5
    Probable         486.6   312.3  215.5  156.5  118.1    321.1  203.2  142.4 103.6  78.2
    Total Proved
    Plus Probable    621.7   407.4  286.5  212.1  163.1    410.3  268.7  208.8 140.0 107.7
    Possible       1,297.5   816.0  561.4  410.6  313.8    856.4  538.6  370.6 271.1 207.2
    Total Proved
    Plus Probable
    Plus Possible  1,919.2 1,223.3  847.8  622.7  476.9  1,266.7  807.3  579.4 411.0 314.9



Readers are referred to the Company's Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information for the year ended December 31, 2013, which can be accessed electronically from the SEDAR website at http://www.sedar.com, for additional information.

BOEs/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. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of provided plus probable plus possible reserves. The present value of estimated future net revenues referred to herein does not represent fair market value.

About BNK Petroleum Inc.

BNK Petroleum Inc. is an international oil and gas exploration and production company focused on finding and exploiting large, predominately unconventional oil and gas resource plays. Through various affiliates and subsidiaries, the Company owns and operates shale oil and gas properties and concessions in the United States, Poland and Spain. Additionally the Company is utilizing its technical and operational expertise to identify and acquire additional unconventional projects. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.

Caution Regarding Forward-Looking Information

Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including statements regarding estimates of reserves and future pre-tax net revenue, the productiveness of the Company's other Tishomingo Field acreage and future downspacing of Caney / Upper Sycamore wells. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Estimated reserves and future pre-tax net revenue have been independently evaluated by NSAI with an effective date of December 31, 2013. This evaluation is based on a limited number of wells with limited production history and includes a number of assumptions relating to factors such as availability of capital to fund required infrastructure, commodity prices, production performance of the wells drilled, successful drilling of infill wells, the assumed effects of regulation by government agencies and future operating costs. All of these estimates will vary from actual results. Estimates of the recoverable oil and natural gas reserves attributable to any particular group of properties, classifications of such reserves based on risk of recovery and estimates of future net revenues expected therefrom, may vary. The Company's actual production, revenues, taxes, development and operating expenditures with respect to its reserves will vary from such estimates, and such variances could be material. In addition to the foregoing, other significant factors or uncertainties that may affect either the Company's reserves or the future net revenue associated with such reserves include material changes to existing taxation or royalty rates and/or regulations, and changes to environmental laws and regulations. The Company's expectations regarding the productiveness of the Company's other Tishomingo Field acreage and future downspacing of Caney / Upper Sycamore wells is based on interpretations of geologic and other information by the Company's exploration team at the date the information is provided and is subject to several assumptions of management, including that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals and that anticipated results will be consistent with managements' expectations, and is subject to a variety of risks, including that anticipated results will not be consistent with managements' expectations and the Company's geological analyses proving to be inaccurate.

Information on other important economic factors or significant uncertainties that may affect components of the reserves data and the other forward looking statements in this release are contained in the Company's Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information for the year ended December 31, 2013, Management Discussion and Analysis and in the Company's Annual Information Form under "Risk Factors", which are available under the Company's profile at http://www.SEDAR.com. The present value of estimated future net revenues referred to herein should not be construed as the current market value of estimated crude oil and natural gas reserves attributable to the Company's properties. The Company undertakes no obligation to update forward-looking statements, other than as required by applicable law.

For further information:

Wolf E. Regener +1(805)484-3613
Email: [email protected]
Website: http://www.bnkpetroleum.com

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management solutions, helping companies worldwide activate their data to drive more value and business insight and to transform moder...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.