CAMARILLO, California, November 7, 2011 /PRNewswire/ --
BNK Petroleum Inc. (the "Company") (TSX: BKX) announced today that its wholly owned subsidiary Trofagas Hidrocarburos, S.L., has been awarded the Sedano oil and gas concession totalling approximately 86,000 acres located in the autonomous community of Castile and Leon, Spain. This concession brings the Company's total acreage in Europe to about 3.9 million net acres, in 5 separate basins.
Located in the Cantabrian basin of Spain and like the previous Urraca concession, the Sedano concession targets principally shale gas but also has some conventional oil and gas potential. The primary target is a Jurassic-aged shale which, based on available information, ranges in the most prospective areas from 100 to over 200 meters in gross thickness at depths of about 2,500 to 4,500 meters. The Jurassic shale is a Type II Kerogen with Total Organic Carbon content ranging between 1.3 and 5.0%. The structure and stratigraphy are defined by numerous existing 2D seismic lines and dozens of wells previously drilled by other operators. Most of the previously drilled wells had oil and/or gas shows in the shale interval as well as in fractured carbonates both above and below the shale. These fractured carbonates are the conventional targets.
Wolf Regener, BNK's President and CEO commented, "We are pleased to have acquired another concession in what we believe is a basin with excellent shale gas potential. Our plan is to develop Spanish shale gas in an environmentally safe manner and create additional regional employment opportunities. We are looking forward to working with Spain's local, regional and federal governments to generate growth, while ensuring a balanced environmental approach. Being at the forefront of implementing the best available environmental technologies and methods is an integral part of the Company's business plan. In the coming months we plan to expand our current open dialogue policy and communicate with all stakeholders to provide information and address any questions that may arise. More comprehensive information about how we safely explore, develop and produce shale gas can be found on our website, http://www.bnkpetroleum.com."
The concession terms include certain minimum requirements, which must be fulfilled by BNK to retain its interest. The more significant minimum requirements include the requirement to drill a well and begin drilling a second well in the first year, drilling one further well in the second year, and three wells in years three and four. All the timelines are subject to being able to obtain permits in a timely manner.
In Poland a drilling rig has been contracted to begin drilling the first well on the Company's Indiana concession blocks in the 1st quarter 2012. Casing and wellheads have been ordered and lease construction is expected to start in early January. The previously announced 2D seismic program is progressing with approximately 17% of the data already acquired. The program consists of about 407 km on the Saponis concessions and 333 km on the Indiana concessions. The objective of the seismic program is to further define basin structure and burial history as well as to aid in the selection of individual well locations.
The Company expects to release its 3rd quarter financials on November 10, 2011.
Caution Regarding Forward-Looking Information
Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including information regarding the Company's current plans and expectations regarding the timing of commencement of drilling the first well on its Indiana concessions, planned exploration programs, including seismic acquisition, minimum commitments for the Sedona concession, and anticipated date of release of third quarter financial results. Forward-looking information is based on plans and estimates of management at the date the information is provided and is subject to certain factors and assumptions of management, including that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays, labor or contract disputes are encountered as well as that the Company's financial condition and the development plans of the Company and its co-venturers will not change. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that occurrences such as those referred to above may occur and result in delays, or cessation in planned work, and that the Company's financial condition and the development plans of the Company or the other participants in the planned exploration programs will change as well as the other risks and uncertainties applicable to exploration activities as set forth in the Company's management discussion and analysis and its annual information form both of which are available for viewing under the Company's profile at http://www.sedar.com . The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
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 gas properties and concessions in the United States, Poland, Spain and Germany. Additionally the Company is utilizing its technical and operational expertise to identify and acquire additional unconventional projects outside of North America. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.
SOURCE BNK Petroleum Inc.