Click here to close now.

SYS-CON MEDIA Authors: Elizabeth White, XebiaLabs Blog, Liz McMillan, David Sprott, Carmen Gonzalez

News Feed Item

BNK Petroleum Inc. announces 2013 year-end reserves

CAMARILLO, CA, March 3, 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   MBOE's
Reserve Category   BNK Gross
(Mbbl)
  Net (Mbbl)   BNK Gross
(MMcf)
  Net (MMcf)   BNK
Gross
(Mbbl)
  Net
(Mbbl)
  BNK
Gross
(Mbbl)
  Net
(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
Reserve Category   0%   5%   10%   15%   20%   0%   5%   10%   15%   20%
                                         
United States                                        
Proved                                        
Developed Producing   26.4   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 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 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.

 

 

SOURCE BNK Petroleum Inc.

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
SYS-CON Events announced today that Creative Business Solutions 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. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...
WHOA.com has announced the newest addition to its data center footprint with the expansion into Equinix's newest state-of-the-art facility: DC-11 Washington, DC IBX+. Located in Ashburn, VA, this data center expands Whoa.com's presence to meet rapidly expanding customer demand for secure cloud solutions. Equinix, Inc. operates International Business Exchange™ (IBX®) data centers in 32 markets across 15 countries in the Americas, EMEA, and Asia-Pacific. Equinix is committed to operating faciliti...
SYS-CON Events announced today that FierceDevOps 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. FierceDevOps keeps software developers and IT operations personnel updated on the latest news and trends around the rapidly evolving role of the traditional IT worker.
The Open Compute Project is a collective effort by Facebook and a number of players in the datacenter industry to bring lessons learned from the social media giant's giant IT deployment to the rest of the world. Datacenters account for 3% of global electricity consumption – about the same as all of Switzerland or the Czech Republic -- according to people I met at the recent Open Compute Summit in San Jose. With increasing mobility at the edge of the cloud and vast new dataflows being pre...
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabili...
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold 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 City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborat...
WSM International is launching a DevOps services division that offers assessment, consulting and implementation to large enterprises and organizations with complex infrastructures. This is the first independent services company to create a dedicated practice to help organizations looking to transition to the DevOps model. The concept of DevOps is to blend information technology (IT) software development with operations to optimize the computing infrastructure according to the specific needs of ...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things...
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed...