TSX ticker symbol; BKX
OTCQX ticker symbol; BNKPF
CAMARILLO, California, July 11, 2018 /PRNewswire/ -- BNK Petroleum Inc. (the "Company") (TSX: BKX) is providing an update on its operations.
The Company is continuing its 2018 drilling program with the Brock 4-2H well. BNK is the operator and has a 77% working interest in the Brock 4-2H well. A major oil company, who is the offset operator and owns the remaining working interest, elected to participate in this well. The Company has built the location and is currently finalizing the rig contract. Drilling is expected to commence in the first half of August when the rig is estimated to be available. The Company will utilize its existing cash flow for its share of the costs.
The Glenn 16-2H well has been on production for over 90 days and continues to perform very well. The well continues to exceed the possible type curve that was prepared by our outside reserve evaluators as at the end of last year.
After being re-started in early June, once a mechanical issue was addressed, the WLC 14-1H well 30 day initial production rate is 145 barrels of oil equivalent a day, with 130 barrels being oil. While production was increasing as more fracture stimulation fluid was recovered, it appears to have plateaued and is showing very low decline. The Company is conducting further analysis to determine the reason for the different flowback in this well compared to previous wells.
At the current price of oil at over $73 USD a barrel, our incremental netbacks for these wells are estimated to be over $41 USD a barrel, which represents a substantial contribution to the Company's cash flow.