SAN FRANCISCO, March 12, 2019 (GLOBE NEWSWIRE) -- BNK Petroleum Inc. (BKX:TSX; BNKPF:OTCQX) reported that an independent reserves evaluation of its Caney formation property increased the company's proved reserves from the prior year by 26% on a barrel of oil equivalent (BOE) basis.
Company mentioned: BNK Petroleum Inc.
The evaluation, conducted by Netherland, Sewell & Associates, an independent firm, using NI 51-101 standards, found total Proved (1P) reserves of 33.8 million BOE, a 26% increase over 2017; Proved plus Probable (2P) reserves of 53.3 million BOE, an 11% increase over 2017; and Proved plus Probable plus Possible (3P) reserves of 78.5 million BOE, a 6% increase over 2017.
In the reserve report, Netherland, Sewell & Associates calculated the 1P Net Present Value (NVP) discounted 10% and before taxes of $376.9 million, a 31% increase over the 2017 estimate. Realizing 2P value would result in an NPV of $521.4 million, a 7% increase over 2017, according to the report, and the stretch 3P number puts the potential value at $690.3 million, an 11% decrease over 2017.
"These increases were primarily due to our 2018 drilling program, as well as our existing producing wells outperforming the previous year's forecasts," BNK President and CEO Wolf E. Regener stated.
Regener said the company is seeking to expand its Caney drilling operations. "The biggest change for the company has been the participation of Exxon subsidiary XTO Energy as a partner in the Brock 4-2H Well."
Continue reading this article: Small-Cap Firm's 2018 Proved Reserves in Oklahoma Shale Increase 26%
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