BNK Petroleum Inc. (TSX: BKX) has provided an update on its Tishomingo Field, Caney oil shale operations in Oklahoma, through its indirect wholly owned subsidiary BNK Petroleum (US) Inc., as well as an update on its Polish operations.
The previously announced fracture stimulation of the (Caney) Barnes 6-3H well was completed and the well is currently flowing back fracture stimulation fluid. While only 11% of the stimulation fluid has been recovered to date, the well has begun producing oil. The oil rates and cuts have been increasing daily, and, on July 18, the well made over 120 BOPD. The gas lift mechanism in place is being optimized to increase the flowback rates from the well. BNK anticipates that it will take another 2 to 3 weeks before enough stimulation fluid has been recovered to allow the true initial production rate to be determined. As a comparison, the Barnes 6-2H Caney well drilled by the company in 2012 did not begin producing any oil until 23% of the stimulation fluid had been recovered.
At the Dunn 2-2H Caney well, the rig was released on July 5 and the well is currently being fracture stimulated. It is anticipated that this will be finished within the next week, after which flowback will be started. BNK anticipates that it will be approximately 4 to 6 weeks before results will be available. The drilling rig has since moved to the next Caney well location, the Hartgraves 5-3H, with spud anticipated within the next 24 hours.
BNK has approximately a 100% working interest in each of the three Caney wells. As a result of the company's recent operations, BNK's net acreage in the Caney formation in the Tishomingo Field has increased from approximately 12,200 acres to 13,400 acres.
In Poland, the government has approved a new ordinance that streamlines the permitting process to drill wells as deep as 5,000 meters. The ordinance is expected to be put into effect in the next two weeks. Once the ordinance is in place, BNK will apply to the Ministry of the Environment for the concession modification which would allow the drilling of the Gapowo horizontal re-entry, as well as all other vertical wells scheduled in its Concession commitments.
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 US, Poland, Spain and Germany.