CAMARILLO, CA, Jan. 13, 2013 /CNW/ - BNK Petroleum Inc. (the "Company") (TSX: BKX) provides the following update on its operations in Poland and Oklahoma.
The exploration horizontal Barnes 6-2H well operated by the Company's US subsidiary BNK Petroleum, (US) Inc. (BNKUS) in its Tishomingo field in Oklahoma, is still being tested with very encouraging results. The 21 day stabilized pumping production rate from the Lower Caney and Upper Sycamore (Mississippian Lime equivalent) formations was 180 barrels of oil equivalent ("BOE") per day with 70 percent of the production being oil. As stated in previous press releases, the horizontal section was completed in both the Sycamore and lower members of the Caney formation. The testing results of the individual zones is designed to help optimize placement of laterals in future wells.
To determine which interval is producing the majority of the oil, packers were set in selected sections of the lateral to isolate the various horizons and conduct individual tests. The testing continues, as the individual tests are producing at higher flush rates than expected. For instance the Sycamore interval alone tested 140 barrels of fluid a day with 70% being oil and the balance being frac fluid that is still being recovered. The tests in the select Caney intervals are currently inconclusive because they are flowing clean oil at rates of 200 barrels of oil per day ("BOPD").
This is providing good evidence that higher proppant concentrations and
potentially more frac stages will further increase the productivity of these zones in future wells. Based on testing results to date, it is anticipated that future wells will include optimized frac stage spacing, much higher proppant concentrations, analogous to other successful shale oil projects, and 20% longer lateral lengths than this well while targeting the most productive interval.
These optimizations are expected to further improve on the anticipated
production rates and potential overall reserve recoveries in future wells
targeting these zones.
BNKUS's internally generated models show that a Sycamore/Caney well with a theoretical initial production rate of 450 BOPD would be expected to produce over 650,000 bbls of oil and yield a rate of return greater than 150 percent (based on 3 years of future strip pricing followed by Sproule's forward curve pricing). In addition, this modeling also estimates that an initial production rate of only 150 BOPD, recovering 180,000 bbls of oil, would provide a 10% rate of return. These models are based on the results to date of testing the Barnes 6-2H well and the Nickel Hill 1-26 well and also incorporate the anticipated effect of the potential future optimizations referred to above. Since these zones are present over BNKUS's entire acreage position with average to above
average calculated net pays (from publically available data), based on this modeling, Sycamore/Caney well development, if successful, would provide significant reserve additions.
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 gas properties and concessions in the United States, Poland, Spain and Germany. Additionally the Company is utilizing its technical and operational expertise to identify and acquire additional unconventional projects outside of North America. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.
SOURCE BNK Petroleum Inc.
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