BNK Petroleum releases Oklahoma drilling update

CAMARILLO, California -- BNK Petroleum Inc. has announced that the Chandler 8-6H well in Oklahoma is producing through facilities, while flowing back fracture stimulation fluids, after its fracture stimulation. In addition, the Hartgraves 1-6H well, the second well of the Company’s 2017 drilling program, has been drilled and cased.

The Chandler 8-6H well began producing significant hydrocarbons at only 3% fluid recovery, far earlier in the flowback process than any of the Company’s previous Caney wells. To date, the well has only recovered 5.4% of its total fracture stimulation fluid and has averaged about 260 bopd for the last 12 days, while still cleaning up. Assuming the well holds in at current levels, the oil production is above the proved undeveloped (PUD) case type curve for oil used to estimate the reserves attributed to the Company’s Tishomingo field. The well is also producing a higher oil percentage (85%) than the PUD case type curve assumes (75%). The 12-day average production is above 300 boed.

The Hartgraves 1-6H well was drilled safely and on budget and the drilling rig is now mobilizing to the Brock 9-2H location, which will be the third well of the Company’s 2017 drilling program. The Company has a 100% working interest in the Brock 9-2H well. The Company is currently awaiting bids for the fracture stimulation of the Hartgraves 1-6H well.

In addition, two of the four previously announced Woodford wells, that the Company participated in, are in flowback. The Company’s share of production from the two wells is currently about 70 boed (~28% oil). The other two wells are expected to begin production shortly.