BNK Petroleum Inc.

BNK Reports 2009 Year End Reserve Update

Calgary, Canada, February 27, 2010 (ots/PRNewswire) - BNK Petroleum Inc. (the "Company" or "BNK")/ is pleased to announce a 182% increase of its Tishomingo shale gas field reported proved and probable reserves ("2P") to 37.9 million boe from 13.5 million boe at year end 2008. Proved and Probable reserves as of December 31, 2009 were U.S.$241.2 million, up from 2008 year end of U.S.$187.8 million, calculated at a 10% pre-tax present value ("NPV") of future net revenue. Proved reserves ("1P") were up 198% to 24.9 million boe from 8.4 million boe at year end 2008. Unless otherwise stated, reserves refer to reserves of natural gas, natural gas liquids and crude oil expressed in barrels of oil equivalent ("boe"). Certain amounts cited herein have been rounded for presentation purposes.

The 2008 and 2009 year-end reports were both prepared by MHA Petroleum Consultants, LLC. ("MHA"), independent petroleum engineering consultants of Lakewood, Colorado. As a result of the Company's planned drilling and completion program on its existing properties in the Tishomingo Field, Oklahoma, all reserves that had been classified as probable reserves in the 2008 year-end report have been converted to proved reserves in the updated report, also prepared by MHA (the "2009 Year End Report"). All updated reserve estimates are effective as at December 31, 2009.

In December, 2008, BNK applied for and received approval to drill three additional wells in one of its sections at an 80-acre spacing pattern. An 80-acre spacing pattern would allow for eight wells per section which could allow for over 340 total gross wells for this project. To date the Company has drilled and participated in 39 gross wells in this project.

Forecast Price Case - Pre Tax

     Category   Gross     Net  Gross     Net   Gross     Net     Net      NPV
                  Oil     Oil    Gas     Gas     NGL     NGL   Mboes      10%
               (Mbbls) (Mbbls) (Mmcf)  (Mmcf) (Mbbls) (Mbbls)      (US$000's)
     Proved
      Developed   482    380  13,614  10,738   2,686   2,119   4,288   45,109
     Producing
      Proved    4,272  3,369  59,377  46,831  11,927   9,407  20,581  127,270
     Undeveloped
      Total
      Proved    4,753  3,749  72,991  57,568  14,613  11,525  24,869  172,380
     Probable   2,708  2,136  37,639  29,686   7,560   5,963  13,046   68,815
     Total
      Proved &
      Probable  7,461  5,885 110,630  87,254  22,173  17,488  37,915  241,195 

Future net revenue is calculated after deduction of forecast royalties, operating expenses, capital expenditures and abandonment costs but before corporate overhead or other indirect costs, including interest and income taxes.

The 2009 Year End Report was prepared in accordance with National Instrument 51-101 using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook and the Sproule Oil & Natural Gas Forecast effective January 1, 2010 as set forth below. Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is 90% 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.

Sproule Forecast as of January 1, 2010 -------------------------------------- --------------------------------------- WTI, Henry Hub, Year $US/Bbl $US/MMBtu --------------------------------------- 2010 $77.59 $5.70 --------------------------------------- 2011 $82.77 $6.48 --------------------------------------- 2012 $85.15 $6.70 --------------------------------------- 2013 $88.40 $7.43 --------------------------------------- 2014 $90.17 $8.12 --------------------------------------- 2015 $91.97 $8.28 --------------------------------------- 2016 $93.81 $8.45 --------------------------------------- 2017 $95.69 $8.62 --------------------------------------- 2018 $97.60 $8.79 --------------------------------------- 2019 $99.55 $8.96 --------------------------------------- 2020 $101.54 $9.14 ---------------------------------------

All references to 'boe' (barrel of oil equivalent) 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 equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Furthermore, boes may be misleading if used in isolation. Future net revenues disclosed herein do not represent fair market value.

BNK is continuing its pursuit of additional shale gas concessions in both Eastern and Western Europe. The Company has acquired 2.1 million gross acres in Europe to date, which are located in 4 basins. The Company continues to apply for concession grants and is awaiting other potential concession approvals.

About BNK Petroleum Inc.

BNK Petroleum Inc. is a U.S. based oil and gas exploration and production company focused on finding and exploiting large predominately unconventional oil and gas resource plays. The Company holds and operates shale gas wells in the United States. Additionally the Company is utilizing its technical and operational expertise to identify and acquire unconventional projects outside of North America. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.

Estimations of reserves and net present values of future net revenue in this press release constitute forward-looking information. See "Forward Looking Information" below. The reserve data in this release is subject to and should be read in conjunction with the entire Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information which the Company expects to file on or before March 31, 2010 and which will be available by electronic access under the Company's profile at http://www.sedar.com and on the Company's website.

Forward-looking Information

Information in this news release respecting estimations of reserves and net present values of future net revenue and the Company's plans and future activities constitutes 'forward-looking information' and as such is based on certain assumptions and subject to risk and uncertainties which could cause actual results to differ materially from those anticipated. Such information is based on information available to the Company at the date of this news release and which it believes to be reasonable. The reserves and future pre-tax net revenue in this press release represent estimates only. The reserves and future pre-tax net revenue from the company's properties have been independently evaluated by MHA with effective dates of December 31, 2009 and December 31, 2008, respectively. 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, 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 the Sproule Oil & Natural Gas Forecast from the 2009 Year End Report as at the dates of the report and many of these assumptions are subject to change and are beyond the control of the Company. Actual production, sales and cash flows derived therefrom will vary from the evaluation and such variations could be material. 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. Risks and uncertainties that could affect the forward looking information include, but are not limited to: the risks associated with the oil and gas industry and BNK's ability to identify suitable drilling locations (e.g., 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; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), risk associated with equipment procurement and equipment failure, risks related to international operations and doing business in foreign jurisdictions, the risk of commodity price and foreign exchange rate fluctuations, risks related to future royalty rate changes and risks and uncertainties associated with securing and maintaining necessary regulatory approvals. In addition, the current financial crisis has resulted in severe economic uncertainty and resulting illiquidity in credit and capital markets which increases the risk that actual results will vary from forward looking expectations and these variations may be material. Additional risks and uncertainties are described in detail in BNK's most recent Annual Information Form, which is available at http://www.sedar.com. The Corporation assumes no obligation to update or revise the forward-looking information to reflect new events or circumstances, except as required by law.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

For further information: Wolf Regener, President and Chief Executive Officer, +1-805-484-3613, Email: investorrelations@bnkpetroleum.com, Website: http://www.bnkpetroleum.com

Contact:

CONTACT:  For further information: Wolf Regener, President and 
ChiefExecutive Officer, +1-805-484-3613,
Email:investorrelations@bnkpetroleum.com
Original-Content von: BNK Petroleum Inc., übermittelt durch news aktuell

Themen in dieser Meldung


Das könnte Sie auch interessieren: