CAMARILLO, California,
March 6, 2015 /PRNewswire/ --
BNK Petroleum Inc. (the "Company" or "BNK")
(TSX: BKX) is providing the results of its December 31, 2014 independent reserves
evaluation.
The evaluation of the Company's reserves in the Caney formation 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.
2014 Gross Reserves Summary
- Total Proved Reserves 12 million Barrels of oil equivalent
(BOE)
- an increase of 197% over December 31,
2013 estimate
- Proved & Probable Reserves 37.4 million BOE's
- an increase of 140% over December 31,
2013 estimate
- Proved, Probable and Possible Reserves 70.3 million BOE's
- an increase of 72% over December 31,
2013 estimate
Net Present Value of Reserves discounted at 10%
- Total Proved Reserves before tax of U.S. $142.9 million
- Proved & Probable Reserves before tax of U.S. $504.5 million
- Proved, Probable and Possible Reserves before tax of U.S.
$875 million
The above total Proved reserves are attributed to 10 of the
wells already drilled and the drilling of 28.9 net additional wells
over the next 5 years. The probable reserves are attributed to 1
well already drilled which is awaiting completion and the drilling
of 28.3 net additional wells. The wells in this report are
planned at 106 acre spacing (6 wells per section) on approximately
10,900 net acres. This is approximately 67 percent of the
16,300 net acres the Company has in this project. The other
33 percent of the acreage is on the easterly side of the Company's
acreage and based on data from the Company's historical drilling of
the deeper Woodford formation
wells, correlated with a 3D seismic survey, the Company anticipates
that future wells on its easterly acreage will demonstrate that the
Caney is also productive over this
easterly acreage.
Summary of Oil & Gas Reserves
Forecast Prices & Costs
Light & Medium
Oil Natural Gas
BNK Gross Net BNK Gross Net
Reserve Category (Mbbl) (Mbbl) (MMcf) (MMcf)
Proved
Developed
Producing 1,126.7 874.3 1,510.8 1,177.4
Developed
Non-Producing 256.5 199.5 197.5 153.6
Undeveloped 7,501.7 5,853.4 6,642.7 5,183.2
Total Proved 8,884.9 6,927.3 8,351.0 6,514.2
Probable 19,130.1 15,043.1 17,109.5 13,453.9
Total Proved Plus
Probable 28,015.0 21,970.3 25,460.5 19,968.1
Possible 24,855.5 19,899.6 22,190.3 17,762.7
Total Proved Plus
Probable Plus
Possible 52,870.5 41,869.9 47,650.8 37,730.8
(table cont.)
Summary of Oil & Gas Reserves
Forecast Prices & Costs
Natural Gas
Liquids MBOE's
BNK Gross Net BNK Gross Net
Reserve Category (Mbbl) (Mbbl) (Mbbl) (Mbbl)
Proved
Developed
Producing 302.2 235.5 1,680.7 1,306.0
Developed
Non-Producing 39.5 30.7 328.9 255.8
Undeveloped 1,328.5 1,036.6 9,937.4 7,754.0
Total Proved 1,670.2 1,302.9 11,946.9 9,315.8
Probable 3,421.9 2,690.8 25,403.6 19,976.2
Total Proved Plus
Probable 5,092.1 3,993.6 37,350.5 29,292.0
Possible 4,438.1 3,552.5 32,991.9 26,412.6
Total Proved Plus
Probable Plus
Possible 9,530.2 7,546.2 70,342.4 55,704.6
Net Present Value of Future Net Revenue
Forecast Prices & Costs
Net Present Value of Future Net Revenue ($ millions)
Before Income Tax After Income Tax
Reserve Category 0% 5% 10% 15% 20% 0% 5% 10% 15% 20%
United States
Proved
Developed
Producing 60.8 49.1 41.4 36.1 32.1 60.8 49.1 41.4 36.0 31.9
Developed
Non-Producing 12.3 9.7 8.1 6.9 6.0 12.3 9.7 8.1 6.9 6.1
Undeveloped 249.3 150.6 93.4 58.0 35.0 161.9 98.2 59.8 35.6 19.4
Total Proved 322.4 209.4 142.9 100.9 73.1 235.0 157.0 109.3 78.4 57.4
Probable 1,132.8 596.8 361.6 239.6 168.8 747.6 422.4 259.5 171.3 120.0
Total Proved Plus
Probable 1,455.2 806.1 504.5 340.6 241.9 982.6 579.4 368.8 249.7 177.4
Possible 1,681.1 718.0 370.5 217.4 139.9 1,109.5 510.0 261.3 148.6 92.9
Total Proved Plus
Probable plus
Possible 3,136.3 1,524.1 875.0 557.9 381.8 2,092.1 1,089.4 630.1 398.3 270.3
Note: All dollar values are expressed in U.S. dollars.
The Company's reserves are derived from non-conventional oil and
gas activities. The Company's reserves are contained in a
shale oil reservoir from which gas and natural gas liquids are
produced as by-products. The reserves described in this news
release are categorized based on the product types sold when such
reserves are realized. As a result, shale oil is categorized
above as "Light and Medium Oil" and its gas by-products are
categorized as "Natural Gas" and "Natural Gas Liquids".
These after income tax net present values reflect the tax burden
on the Company's Tishomingo Field interests on a standalone basis,
do not consider the business-entity-level tax situation, or tax
planning and do not provide an estimate of the value at the level
of the business entity, which may be significantly different. The
financial statements and the management's discussion and analysis
(MD&A) of the Company should be consulted for information at
the level of the business entity.
Readers are referred to the Company's Form 51-101F1 Statement of
Reserves Data and Other Oil & Gas Information for the year
ended December 31, 2014, 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 net revenue,
expectations regarding additional reserves
and statements regarding Caney wells development, including
plans, anticipated results and
timing. 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 net revenue have been
independently evaluated by NSAI with an effective date of
December 31, 2014. 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, will 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. Forward-looking information
regarding Caney wells development and
expectations regarding additional reserves are 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 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, and 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, including that
anticipated results and estimated costs will not be consistent with
managements' expectations, the Company or its subsidiaries not
being 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 and that equipment
failures, permitting delays or labor or contract disputes or
shortages are encountered.
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 & Gas Information for
the year ended December 31, 2014, the
Company's Management Discussion and Analysis and 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.
Wolf E. Regener,
+1-(805)484-3613, Email: investorrelations@bnkpetroleum.com,
Website: http://www.bnkpetroleum.com