BNK Petroleum Inc. announces 3rd quarter 2012 results
Wednesday, Nov 14, 2012CALGARY, November 13, 2012 /PRNewswire/ --BNK's President and Chief Executive Officer, Wolf Regener commented:
"Third Quarter results reflect our continued investment in Poland as we seek to discover new large shale gas reserves in that country as well as continued investment in our Oklahoma assets. In Poland we believe we are much closer to proving that shale gas will work in Europe with our Gapowo B-1 well results. We are looking forward to obtaining the approvals needed to drill the lateral to test the overpressured, high gas show intervals that we encountered. In the United States our production from the Woodford shale has begun increasing once again and we look forward to further evaluation of the mainly oil producing Caney/Sycamore lime interval in the same field. The Caney/Sycamore lime could add substantial reserves and it should generate much higher net backs since it is anticipated to be mainly oil, based on our early results.
In the third quarter the Company incurred a loss of $4.3 million versus a loss of $.3 million in the third quarter of 2011. For the first nine months of 2012 the Company incurred a loss of $10.4 million versus a profit of $18,000 earned in the first nine months of 2011. In the third quarter oil and gas revenues before royalties were up $549,000 over 2nd quarter 2012, but declined $3.2 million in comparison to the third quarter 2011, due to a lower average natural gas prices and NGL prices coupled with reduced average total daily production. Other income in the third quarter declined $1.1 million due to lower management fee income.For the comparative nine month periods oil and gas revenues before royalties declined $4.4 million due to lower natural gas and NGL prices. Other income in the comparative nine month period declined $2.5 million due to a sale of seismic data in 2011 and lower management fee income.
Expenses increased $3.6 million between the comparative nine month periods due to higher general and administrative expenses resulting from the Company's expanding European operations.
Capital expenditures were $12.7 million in the quarter and $36.1 million through the first nine months of 2012 as we continue to explore for large shale gas reserves in Poland through our 100% owned Indiana Investments Sp z o. o. subsidiary ("Indiana") and further develop our Tishomingo assets both in operated and non-operated wells primarily operated by XTO Energy.
As recently announced we remain very encouraged with the data we have obtained from analyzing the core samples obtained from the Gapowo B-1 well in Poland. The data validates our geologic model of increasing thickness and organic content over the target interval and are consistent with analyses indicating over pressured permeable shales. We await approval to drill a lateral out of the Gapowo B-1 wellbore.
The Company's ongoing analysis in Germany has determined that a number of the targets that the Company is pursuing have a higher risk profile due to new data gathered. The Company will be deciding whether to continue pursuing a number of these projects in the coming months.
About BNK Petroleum Inc.
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 United States, Poland, Germany and Spain. Additionally the Company is utilizing its technical and operational expertise to identify and acquire additional unconventional projects outside of North America. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.
Source: BNK Petroleum Inc.
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