CAMARILLO, California, February 16, 2011 /PRNewswire/ -- BNK Petroleum Inc. (the "Company") (TSX: BKX) announced today that the Wytowno #1 well, on the Slawno concession in Poland, has been drilled to 3,580 meters and is being prepared to have casing run and cemented to total depth. During drilling, numerous gas shows were recorded over 220 meters of the Lower Silurian, Ordovician and Cambrian shales and a further 450 meters of gas shows were recorded in the middle and upper Silurian shale. The strongest gas shows were encountered in the Ordovician shale. The gas shows consisted of mainly methane, with a small percentage of ethane and propane.
The Ordovician shale interval in the Wytowno #1 well is approximately 83 meters thick and represents a thicker section than seen in previous wells drilled in updip, structurally higher positions. This suggests an increasing thickness trend that may continue into deeper portions of the basin. Approximately 200 sidewall cores have been taken to fully evaluate the physical parameters of the rock. These analyses will provide, among other data: porosity, permeability, total organic carbon, rock eval pyrolysis, thermal maturity, gas composition, micropaleontology, and mechanical properties.
The Company estimates that it will take about 45 days to receive the results of these analyses from the subcontractors. The suite of Schlumberger open hole logs that were run in the Wytowno #1 well, will be calibrated using the data to more precisely calculate the potential pay sections. The log suite currently calculates the highest gas and best properties in the Ordovician shale interval. In addition IsoTube and IsoJar samples were taken which will allow verification of the thermal maturity.
In early April all data analysis for the completion should be finished and the fracture stimulation will be designed. The Company anticipates being able to fracture stimulate the first interval in the Wytowno #1 well and provide results during the second quarter.
At a current estimated cost of US$6 million, which includes estimated costs to run and cement the production casing, the well will be drilled on budget. Once casing has been run and cemented in the Wytowno #1 well, the rig will mobilize over to the Lebork location, on the Slupsk concession to immediately begin drilling operations. The Lebork location has already been completed and all permits are in place. The Lebork #1 well is located approximately 26 kilometers from Lane Energy/Conoco's Lebien LE1 well. The Wytowno #1 and Lebork #1 wells are being drilled by Saponis Investments Sp Z o.o. where the Company is Manager. The Company owns 26.6 per cent of Saponis, and the rest of Saponis is owned by Rohöl-Aufsuchungs Aktiengesellschaft (RAG), Sorgenia E&P SpA and by LNG Energy through a subsidiary. The company is obliged to pay approximately 6.6 per cent of the drilling costs of these first two wells, with the other 20 per cent of the company's interest being paid by RAG and Sorgenia under the terms of the company's farm-out to RAG and Sorgenia. The company holds 195,000 net acres in Poland through Saponis and a further 880,000 adjacent net acres through another European subsidiary.
Wolf Regener, CEO of the Company, stated, "We are pleased with the initial log analysis and the gas shows in the Wytowno #1 well. We look forward to the analysis of all the data to identify the intervals to be tested so that we can attempt to prove that gas can be liberated from the Polish shales in this wellbore."
The Company is currently awaiting the analysis of the samples that were collected in the second phase of field work, which was completed during the quarter of 2010. Additionally, the bidding process has been initiated for seismic operations planned for the second half of 2011. The Company expects to acquire between 30 and 50 kilometers of 2D seismic on each of the 6 concession blocks. The first seismic to be acquired will likely be in the North Rhine Westfallia blocks on acreage offsetting Exxon. The Company's 2.4 million acres in Germany were acquired primarily for shale gas, but some of the blocks also have secondary potential for tight gas sands and Coal Bed Methane.
In Alabama the Company has completed testing of its WS Lee well without economic quantities of gas being produced. The well is being plugged and abandoned.
The Company will be releasing its year end financials and its 2010 year end reserve report on or about March 25th, 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 Wytowno #1 well, including timing of commencement planned frac program, expectation that cost of well will be within budget, plans to acquire 2D seismic and timing regarding same and expected timing of release of year end financial and reserves information. 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 the financial condition and 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 development plans of the Company or the other participants in the Wytowno #1 well will change as well as the other risks and uncertainties applicable to exploration activities and to the Company 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 a U.S. based 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 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.
For further information: Wolf E. Regener +1(805)484-3613 Email: firstname.lastname@example.org Website: http://www.bnkpetroleum.com
SOURCE BNK Petroleum Inc.