Energia
BNK Petroleum Inc. - Announces 2017 Year-End Reserves
The evaluation of the Company's reserves in the Caney formation of the Tishomingo Field in the SCOOP area of Oklahoma was conducted by Netherland, Sewell & Associates, Inc. ("NSAI") in accordance with National Instrument 51-101 - .
The above total Proved reserves are attributed to 14 of the Caney wells already drilled, four Woodford wells (4.9% working interest for the Company) and the drilling of 46.35 net additional wells over the next 3 years. The Probable reserves are attributed to the drilling of 35.5 net additional wells. The wells in this report are planned at 107 acre spacing (6 wells per section) on approximately 11,653 net acres. This is approximately 66 percent of the 17,680 net acres the Company has in this project. The other 34 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.
Wolf Regener , President and CEO commented. "We are very pleased with the substantial proved reserve increases this year which was mainly due to our 2017 drilling program. Also noteworthy, is that the estimated ultimate recovery from the existing wells increased, as the existing producing wells once again exceeded the previous year forecast. This continued year over year improvement demonstrates the favorable performance of our wells and the long life we anticipate from our wells. These increases to our reserves do not incorporate the wells in our 2018 drilling program which is in progress. The Glenn 16-2H well that is currently being fracture stimulated, is still listed as a probable location in the new reserve report and the WLC 14-2H well, that was drilled this year, is entirely outside of the acreage that is covered by the new reserve report. The Company expects these wells to further increase the Proved and Probable reserves, once the wells are brought online and a new reserve report is generated."
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. "Tight oil" means crude oil (a) contained in dense organic-rich rocks, including low-permeability shales, siltstones and carbonates, in which the crude oil is primarily contained in microscopic pore spaces that are poorly connected to one another, and (b) that typically requires the use of hydraulic fracturing to achieve economic production rates. "Shale gas" means natural gas (a) contained in dense organic-rich rocks, including low-permeability shales, siltstones and carbonates, in which the natural gas is primarily adsorbed on the kerogen or clay minerals, and (b) that usually requires the use of hydraulic fracturing to achieve economic production rates.
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, 2017 , which can be accessed electronically from the SEDAR website at http://www.sedar.com, for additional information.
Wolf E. Regener , +1-(805)-484-3613, Email: investorrelations@bnkpetroleum.com, Website: http://www.bnkpetroleum.com