CALGARY, March 30 /CNW/ - BNK Petroleum Inc. ("BNK" TSX: BKX) is pleased to announce the results of its December 31, 2008, independent reserves evaluation. The evaluation of the Company's Tishomingo Field in Oklahoma was conducted by MHA Petroleum Consultants, Inc. ("MHA") and was prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. BNK has also completed SEDAR filing of its December 31, 2008 year end reports related to oil and gas reserves prepared in accordance with NI 51-101. These reports, which can be accessed electronically from the SEDAR website at www.sedar.com, include Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information, Form 51-101F2 - Report on Reserves Data by Independent Qualified Reserves Evaluator, and Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure.
2008 Reserves Summary - Proved Reserves Increased by 212% to 9.9 million BOE's - Proved & Probable Reserves Increased by 74% to 16.6 million BOE's Net Present Value of Reserves discounted at 10% - Proved & Probable Reserves before tax of $187.8 million - an increase of 106% over last year - Proved & Probable Reserves after tax of $124 million - an increase of 106% over last year
The above reserves were attributed to the 39 wells that have been drilled and 38 additional locations that BNK currently has an interest in. In December of 2008 BNK applied for and received approval to drill 3 additional wells in one of its sections at an 80 acre spacing pattern. An 80 acre spacing pattern would allow for 8 wells per section which could allow for over 340 total gross wells for this project.
About BNK Petroleum Inc.
BNK Petroleum Inc. is a California based oil and gas exploration and production company focused on finding and exploiting large oil and gas resource plays. The Company holds an average of 50% interest in the Tishomingo gas field in Oklahoma and varied interests and rights in three other areas in the Northern and Central regions of the United States, where it is currently pursuing the exploration, development and production of shale and tight sand gas plays. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.
All references to barrel of oil equivalent (BOE) are calculated on the basis of 6 Mcf:1 bbl. Readers are cautioned that the conversion used in calculating barrels of oil equivalent is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Furthermore, BOE may be misleading if used in isolation. Future net revenues disclosed herein do not represent fair market value.
Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
This press release contains certain forward looking statements including, but not limited to, estimates of reserves and future net revenues and expected drilling opportunities in the Tishomingo Field. These forward looking statements are based on current expectations; however, they involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements. These risks and uncertainties include, but are not limited to risks associated with the oil and gas industry including operational risks in development, exploration and production delays, or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates and projections in relation to production, costs and expenses; health, safety and environmental risks; and risks associated with obtaining, maintaining and the timing of receipt of regulatory approvals, permits and licenses. Additional risks and uncertainties are described in the Company's Management's Discussion and Analysis for the year ended December 31, 2008 and the Company's Annual Information Form for the year ended December 31, 2008 copies will be filed under the Company's profile on SEDAR at www.sedar.com.
The reserves and future net revenue in this press release represent estimates only. The reserves and future net revenue from the Tishomingo Field have been independently evaluated by MHA with an effective date of December 31, 2008. This evaluation includes a number of assumptions relating to factors such as initial production rates, production decline rates, ultimate recovery of reserves, timing and amount of capital expenditures, marketability of production, future prices of crude oil and natural gas, operating costs, well abandonment and salvage values, royalties and other government levies that may be imposed during the producing life of the reserves. These assumptions were based on certain price forecasts contained in the MHA reserves evaluation. Details of these assumptions are contained in BNK's 2008 year end reports related to oil and gas activities prepared in accordance with NI 51-101, which reports have been filed under the Company's profile on SEDAR at www.sedar.com.
Due to the risks, uncertainties and assumptions inherent in forward looking information, prospective investors in the Company's securities should not place undue reliance on forward looking information. Forward looking information contained in this press release is made as of the date hereof and is subject to change. The Company assumes no obligation to revise or update forward looking information to reflect new circumstances, except as may be required by law.
The TSX does not accept responsibility for the adequacy or accuracy of this news release.