BNK Petroleum Inc. - Announces 2017 Year-End Reserves

CAMARILLO, California, March 14, 2018 /PRNewswire/ --

BNK Petroleum Inc. (the "Company" or "BNK") (TSX: BKX), is providing the results of its December 31, 2017 independent reserves evaluation.

The evaluation of the Company's reserves in the Caney formation of the Tishomingo Field in the SCOOP area of Oklahoma was conducted by Netherland, Sewell & Associates, Inc. ("NSAI") in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. 

2017 Gross Reserves Summary 

• Total Proved Reserves 25.2 million Barrels of oil equivalent (BOE)
  • an increase of 40% over the December 31, 2016 estimate
• Proved plus Probable Reserves 47.6 million BOEs
  • an increase of 13% over the December 31, 2016 estimate
• Proved plus Probable plus Possible Reserves 70.6 million BOEs
  • a increase of 6% from the December 31, 2016 estimate

Net Present Value of Reserves discounted at 10% 

• Total Proved Reserves before tax of U.S. $259.5 million
  • an increase of 73% over the December 31, 2016 estimate
• Proved plus Probable Reserves before tax of U.S. $486.4 million
  • an increase of 31% over the December 31, 2016 estimate
• Proved plus Probable plus Possible Reserves before tax of U.S. $764.4 million
  • an increase of 10% over the December 31, 2016 estimate

The above total Proved reserves are attributed to 14 of the Caney wells already drilled, four Woodford wells (4.9% working interest for the Company) and the drilling of 46.35 net additional wells over the next 3 years. The Probable reserves are attributed to the drilling of 35.5 net additional wells. The wells in this report are planned at 107 acre spacing (6 wells per section) on approximately 11,653 net acres. This is approximately 66 percent of the 17,680 net acres the Company has in this project. The other 34 percent of the acreage is on the easterly side of the Company's acreage and based on data from the Company's historical drilling of the deeper Woodford formation wells, correlated with a 3D seismic survey, the Company anticipates that future wells on its easterly acreage will demonstrate that the Caney is also productive over this easterly acreage.