ANNOUNCES COMMENCEMENT OF DRILLING OPERATIONS
Drilling operations commenced today on BNK Petroleum Inc.'s (BKX.T) Tishomingo field, Caney oil shale operations, in Oklahoma.
The drilling rig contracted by the Company has begun drilling the Chandler 8-6H Caney shale oil well. Drilling is expected to take approximately 30 days, after which the rig will immediately move to the Hartgraves 1-6H location where final preparations are being completed. The fracture stimulation of the Chandler 8-6H well is planned to commence after the drilling rig has moved to the Hartgraves location.
Wolf Regener, President and CEO, commented "We have an excellent team in place, comprised of our employees, contractors and consultants, to execute this drilling program and continue our successful development of the Caney Shale Oil field. The drill sites we have selected are offsetting some of our best performing wells, in geologically comparable areas. We expect the wells to significantly increase our already positive cash flow, as well as prove up additional reserves."
The Company has shut-in 3 wells due to offset fracture stimulations being performed by another operator on a number of wells in the Woodford formation which lies beneath the Caney. The offset operator's operations are expected to be completed in the next few weeks at which time the wells will be re-started. The Company does not expect this to impact the long-term production of the wells going forward. The four non-operated Woodford wells, in which the Company has a 5% working interest, have been fracture stimulated by the offset operator and are also expected to come on production in the coming weeks.
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. Additionally, the Company is utilizing its technical and operational expertise to identify and acquire additional projects. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.