Projects

Growth Strategy

BNK Petroleum, Inc. remains focused on the continued development of existing properties in concentrated geographic areas, advantageous acquisitions in undeveloped reserves, and additional potentially significant exploration projects, such as those currently being pursued in Europe.  BNK's team has, over the last 20 months looked at over 20 basins in 9 countries in both Eastern and Western Europe and has narrowed it down to 6 basins that it is pursuing.  They are applying the knowledge they has accumulated over the years in U.S. gas shales and are applying it to Europe.  The 1^st set of concessions, that were awarded to BNK are in Poland.  BNK believes it is one of the early companies to pursue shale gas land acquisitions in Europe and hopes to have additional concessions awarded to it in multiple basins by the end of the year. This strategic focus provides a stable production and a platform and the potential for future growth of the company. 

Poland Basin, Europe
BNK Petroleum Inc. has an interest in three concessions which total 600,000 net acres through its wholly owned subsidiary Saponis Investments Sp. z.o.o.  The three concessions, Starogard, Slupsk and Slawno, are located in Northern Poland and total about 720,000 gross acres.  BNK has an 80% working interest in each concession, assuming a previously granted right to participate is exercised by a privately owned Delaware company as previously disclosed by BNK on December 3, 2008.

At this time, the majority of BNK Petroleum, Inc.’s U.S. properties are located in Oklahoma, Texas, New York, Mississippi/Alabama and Poland - five distinct basins considered to be of high potential for natural gas. With a current production rate of about 1,000 BOE/day, a reserve base (P+P) of 13.5 million BOE, and an additional 175,000 net acres in three other plays in the US, BNK Petroleum, Inc. hopes to continue to experience steady, continued growth. 

Detailed U.S. project information follows below

Ardmore Basin, Oklahoma

Tishomingo Project Reserves

The Tishomingo Project Reserves currently BNK’s largest resources, generating 2P $187.8 million, (December 31, 2008 NI-51-101 reserves report).  This project is considered to have high (and growing) potential future recovery, with projected recoveries per well expected to increase as more wells are drilled and infill drilling proves up.  In addition, improvements in production rates from refined completion techniques can add to further upside potential.  Tishomingo remains BNK Petroleum Inc.’s biggest U.S. prospects for future growth, stability and profitability.

Black Warrior Project

BNK Petroleum, Inc. sees significant potential in its 40,000+ acre Black Warrior Project that it has the rights to earn into.  Its Pottsville tight gas sands have a thickness of 1,000-2,000 feet, with commercial fields not far off.  Other positives that make the Black Warrior Project among BNK’s biggest prospects are its gas shows and DST’s in old wells that were drilled before tight gas sand fracture techniques were readily being used as well as the Floyd shale potential of the property. 

Palo Duro Basin, Texas
The third of BNK Petroleum Inc’s primary US projects is the Palo Duro Basin in Texas.  With a high SCF/ton of gas in shale, BNK has successfully narrowed down the core area of basin and completed its core work in 5 wells.   Tyner Resources, another company operating in Palo Duro,  has experienced a steady 200+ mcf/d for over 14 months from its vertical Bend shale well.  BNK is hoping to show the repeatability of that from its Black 4-1 well which it anticipates fracture stimulating in the future.