|By PR Newswire||
|January 15, 2014 09:31 PM EST||
CAMARILLO, CA, Jan. 15, 2014 /PRNewswire/ - BNK Petroleum Inc. (the "Company" or "BNK") (TSX: BKX), is providing an update on its Tishomingo Field, Caney oil shale operations in Oklahoma as well as its Polish shale gas project.
Oklahoma - Tishomingo Field
BNK's strategy for its 2013 Caney drilling program was to prove the productivity of the Caney formation in our Tishomingo field. The Company's efforts were focused on increasing the oil rate of each consecutive well, reducing drilling time and cost, testing the optimal lateral placement within the formation and optimizing the fracture stimulations. These goals have been successfully achieved.
Recently, in the Wiggins 12-8H, (96.5% working interest) the Company also focused on reducing completion costs by testing various fracture stimulation techniques. This work has contributed to a dramatic reduction in future estimated completion costs, as discussed below.
The Wiggins 12-8H, while still recovering stimulation fluid from its fracture treatment, has been steadily improving, with a recent 24 hour production rate of 300 Barrels of oil per day (BOPD) or 420 Barrels of oil equivalent per day (BOEPD). Due to technical issues encountered during the drilling of the Wiggins 12-8H and the testing of different fracture stimulation techniques, only 2,600 feet of lateral was effectively stimulated - approximately half the effective length planned in our Caney wells. Most importantly, on a net stimulated stage basis, oil production from this shorter lateral is comparable to the production from the Barnes 7-2H well.
Our previously completed well, the Barnes 7-2H (98.1% working interest) had a 30 day oil rate of 406 BOPD (520 BOEPD) and a 24 hour peak rate of 520 BOPD (750 BOEPD). This was the Company's first well which targeted the lower Caney interval and, despite a completion interval 15% shorter than previous wells, is producing at higher oil rates and significantly slower decline rates than previous wells placed in the Transition zone. The Company plans to return to the Barnes 7-2H well to stimulate the remaining 15% of the lateral.
BNK rig released its Leila 31-2H well (100.0% working interest) in a record 17 days and has initiated the fracture stimulation of 7 of the 33 planned stages. The completion is utilizing one of the new fracture stimulation techniques successfully tested in the Wiggins 12-8H well. The initial seven stages will be flowed back to fully evaluate the results prior to continuing with the fracture stimulation of the rest of the lateral.
Incorporating the significant improvement in drilling times and cost and the new stimulation technique, the Company expects that its future Caney wells will be approximately $8 million to drill and complete. The drilling rig has been released while the Company awaits the final core work from the Barnes 7-2H well and the results of the Leila 31-2H stimulation. The Company plans to begin its 2014 drilling program in the second quarter. Over the next few months the Company also plans to finish stimulating the remaining stages in the Barnes 7-2H and the Leila 31-2H wells. The Company's net year-end exit rate was approximately 1,040 BOEPD of which 635 barrels a day were oil with current net production at 1,415 BOEPD. The Company's net prospective Caney acreage totals about 14,880 acres.
Wolf Regener, President and Chief Executive Officer commented, "I am very pleased with the progress our team has made this past year in reaching our U.S. goals. The reduction of well drilling times, the refinement of the placement of the laterals and optimization of the completions has led to our now being able to drill much cheaper wells, with much lower decline rates and have a higher percentage of oil in the production mix. In our last two wells, approximately 70 percent of the production is oil versus about 50 percent in previous wells. A higher mix of oil in our production stream leads to higher netbacks in the current pricing environment".
The Company's investor presentation has been updated and can be found on Company's website. The presentation contains comparisons of a number of the Company's wells as well as an internally modelled estimated decline curve for its future Caney wells.
In Poland, the Company has initiated the drilling of the horizontal lateral with the re-entry of the Gapowo B-1 well, which is expected to take about 30 days to drill. The well is targeting the over-pressured, gas charged, organic-rich shales that were encountered in the vertical Gapowo B-1 well.
While drilling the vertical well, the average and maximum total gas readings were much higher than those seen in the Company's other Baltic Basin wells. The analysis of the log and core data leads the Company to believe that the Lower Silurian and Ordovician shales are highly prospective for shale gas as the shales have good total organic carbon, porosities and permeability's. The Company's geological work indicates that these characteristics are likely to extend over a significant portion of the Company's Baltic Basin acreage.
The Company plans to fracture stimulate seven of the available stages and evaluate the flowback prior to fracture stimulating the rest of the lateral. This two step approach will provide data to further optimize the fracture design prior to continuing the stimulation along the lateral section.
The Company, as well as Esrey Energy Ltd., have increased their ownership in Saponis Investments Sp. z o.o. ("Saponis") by acquiring the interests of the other two Saponis shareholders on a pro-rata basis. The Company now holds a 57.04% interest in Saponis up from the original 26.7%. The consideration for the acquisition is the assumption of the future obligations of the selling shareholders in Saponis on a pro-rata basis.
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, Spain and Germany. 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 Caney wells and Gapowo B-1 well development, including plans, anticipated results and timing, estimated future Caney well costs and the prospectiveness of the Company's properties. Forward-looking information is based on plans and estimates of management and interpretations of exploration information by the Company's exploration team at the date the information is provided and is subject to several factors and assumptions of management, including that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, that anticipated results and estimated costs will be consistent with managements' expectations, that new stimulation techniques will be successful, that required regulatory approvals will be available when required, that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays or labor or contract disputes or shortages are encountered, that the development plans of the Company and its co-venturers will not change, that the demand for oil and gas will be sustained, that the Company will continue to be able to access sufficient capital through financings, farm-ins or other participation arrangements to maintain its projects, and that global economic conditions will not deteriorate in a manner that has an adverse impact on the Company's business, its ability to advance its business strategy and the industry as a whole. 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. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions on which such forward looking information is based vary or prove to be invalid, including that anticipated results and estimated costs will not be consistent with managements' expectations, new completion techniques proving to be unsuccessful, the Company or its subsidiaries is not able for any reason to obtain and provide the information necessary to secure required approvals or that required regulatory approvals are otherwise not available when required, that unexpected geological results are encountered, that equipment failures, permitting delays or labor or contract disputes or shortages are encountered, that completion techniques require further optimization, that production rates do not match the Company's assumptions, that very low or no production rates are achieved, that the Company is unable to access required capital, that occurrences such as those that are assumed will not occur, do in fact occur, and those conditions that are assumed will continue or improve, do not continue or improve, and the other risks and uncertainties applicable to exploration and development activities and the Company's business as set forth in the Company's management discussion and analysis and its annual information form, both of which are available for viewing under the Company's profile at www.sedar.com, any of which could result in delays, cessation in planned work or loss of one or more concessions and have an adverse effect on the Company and its financial condition. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
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.
SOURCE BNK Petroleum Inc.
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data th...
Feb. 27, 2015 11:15 AM EST Reads: 792
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along...
Feb. 27, 2015 11:00 AM EST Reads: 6,825
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
Feb. 27, 2015 11:00 AM EST Reads: 2,531
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
Feb. 27, 2015 11:00 AM EST Reads: 2,321
The IoT market is projected to be $1.9 trillion tidal wave that’s bigger than the combined market for smartphones, tablets and PCs. While IoT is widely discussed, what not being talked about are the monetization opportunities that are created from ubiquitous connectivity and the ensuing avalanche of data. While we cannot foresee every service that the IoT will enable, we should future-proof operations by preparing to monetize them with extremely agile systems.
Feb. 27, 2015 11:00 AM EST Reads: 1,047
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. Learn about IoT, Big Data and deployments processing massive data volumes from wearables, utilities and ot...
Feb. 27, 2015 11:00 AM EST Reads: 916
RingCentral Inc., has unveiled the RingCentral Connect Platform™, a set of tools and services to build, deploy, and manage custom integrations using RingCentral APIs. With this platform, developers can build out-of-the-box integrations with RingCentral to add powerful communication capabilities to business applications. "This is a significant step forward because businesses want to better connect with customers – and communications is at the heart of every customer interaction," said Vlad Shm...
Feb. 27, 2015 10:45 AM EST Reads: 841
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
Feb. 27, 2015 10:30 AM EST Reads: 2,285
SYS-CON Media announced that IBM, which offers the world’s deepest portfolio of technologies and expertise that are transforming the future of work, has launched ad campaigns on SYS-CON’s numerous online magazines such as Cloud Computing Journal, Virtualization Journal, SOA World Magazine, and IoT Journal. IBM’s campaigns focus on vendors in the technology marketplace, the future of testing, Big Data and analytics, and mobile platforms.
Feb. 27, 2015 10:15 AM EST Reads: 740
NaviSite, Inc., a Time Warner Cable company, has opened a new enterprise-class data center located in Santa Clara, California. The new data center will enable NaviSite to meet growing demands for its enterprise-class Cloud and Managed Services from existing and new customers. This facility, which is owned by data center solution provider Digital Realty, will join NaviSite’s fabric of nine existing data centers across the U.S. and U.K., all of which are designed to provide a resilient, secure, hi...
Feb. 27, 2015 10:00 AM EST Reads: 756
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-cri...
Feb. 27, 2015 10:00 AM EST Reads: 1,056
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add sc...
Feb. 27, 2015 10:00 AM EST Reads: 4,538
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
Feb. 27, 2015 10:00 AM EST Reads: 3,870
There has been a lot of discussion recently in the DevOps space over whether there is a unique form of DevOps for large enterprises or is it just vendors looking to sell services and tools. In his session at DevOps Summit, Chris Riley, a technologist, discussed whether Enterprise DevOps is a unique species or not. What makes DevOps adoption in the enterprise unique or what doesn’t? Unique or not, what does this mean for adopting DevOps in enterprise size organizations? He also explored differe...
Feb. 27, 2015 10:00 AM EST Reads: 2,245
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Feb. 27, 2015 10:00 AM EST Reads: 3,128