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BNK Petroleum Inc. announces sale of acreage and concurrent signing of Exploration Agreement
CALGARY, Dec. 3 /CNW/ - BNK Petroleum Inc. (the Company)/(TSX: BKX) announces that it has execute...
About this update from Kolibri Global Energy Inc
[{"type":"text","content":"\n\n\n\nCALGARY, Dec. 3 /CNW/ - BNK Petroleum Inc. (the Company)/(TSX: BKX)\nannounces that it has executed a Purchase and Sale Agreement (the "Agreement")\nwith a privately owned Delaware company (the "Purchaser"), to sell\napproximately 2,800 acres of oil and gas leases which is not currently a part\nof the Tishomingo Field development, in Carter County, Oklahoma and an\nestimated 86,000 acres of leases in the Black Warrior Basin of Mississippi and\nAlabama for US$10 million. Concurrent with this Agreement, BNK has also\nentered into an Exploration Agreement with the Purchaser in regard to the\nBlack Warrior acreage whereby BNK can earn up to a 50% working interest in a\nportion or all of the Black Warrior acreage by drilling a series of test wells\non identified prospects. The exploration program requires BNK to pay for the\nPurchaser's share of costs in the test wells. BNK is currently projected to\nincur an expenditure of up to US$10 million in order to earn the 50% working\ninterest. The first three wells are on a drilling schedule to begin by\nSeptember 30th, 2009. Failure to commence any of these wells on scheduled\ndates could subject BNK to liquidated damages of $500,000 for each well. The\ntransaction is expected to close in mid December. In addition BNK has agreed\nto allow the Purchaser to participate for a 20% interest, at its proportionate\ncost, in a new shale exploration project that BNK is currently reviewing.\n\n\nThe Company intends to use the proceeds from the sale in the continued\ndevelopment of its Tishomingo Field in the Ardmore Basin, Oklahoma and for\ngeneral working capital purposes.\n\n\nBNK is also pleased to announce that it is now producing about 650 BOEPD\nnet to BNK and has wells that are capable of producing, but are shut in\nawaiting gathering system hookup for another 150 BOEPD for a total of about\n800 BOEPD net to BNK. These numbers assume a suboptimal recovery of NGL's from\nthe temporary processing plants. One of the temporary plants only recovers\nabout 0.6 gallons per MCF. This plant is expected to be decommissioned in the\nfirst quarter of 2009 when the Tishomingo Field is connected to the previously\nannounced Atlas Velma Cryogenic processing plant through a wet gas gathering\nline. BNK along with its partner is currently completing the main gathering\nsystem to al...