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BNK Says New Caney Shale Well Could Be Its Best to Date

BNK Petroleum Inc. said its latest well in southern Oklahoma's Tishomingo Field -- targeting the Caney Shale, a shallow oil formation in the Ardmore Basin -- is flowing back after the company's largest hydraulic fracture stimulation, and could be its best Caney well to date.

In an operations update Monday, the Camarillo, CA-based company said that over the last five days the Hartgraves 1-5H well has been flowing at an average restricted production rate of 620 boe/d, including 424 bbl of oil. The well, in which BNK holds a 100% working interest (WI), began producing oil about 10 days earlier, averaging more than 520 boe/d over the course of the 10 days while cleaning up and improving to the 620 boe/d rate.

"The initial rates and flowing pressures indicate the Hartgraves 1-5H should be one of BNK's best Caney wells to date," the company said. "Even with the very large enhanced completion utilized in this well and having encountered some drilling issues, the drilling and completion cost of this well still came in under $8 million dollars. [We are continuing] to optimize [our] geologic interpretations, drilling practices and completion designs to improve future well performance and costs."

BNK said its previously drilled and completed Wiggins 11-2H well (93.4% WI) had an initial 30-day production rate of 323 boe/d, including 202 bbl of oil. "The well had a steeper than average decline in the first few weeks following which the rate of decline slowed significantly," BNK said. It attributed the steeper decline to several factors -- including lateral placement, completion design and flowback procedures -- which were modified for the Hartgraves well.

The company said a drilling rig deployed in the play is currently drilling the lateral for a third well, Emery 17-1H. The well is expected to be completed and flowing back in November.

BNK said its 3Q2014 production averaged 971 boe/d, but that included only about 30 days of production from the Wiggins well and none from Hartgraves. The company's production in September averaged 1,087 boe/d.

Last year, BNK sold its interest in 44 wells and all of its Woodford Shale production to XTO Energy Inc., a subsidiary of ExxonMobil Corp., for $147.5 million (see Shale DailyMarch 19, 2013). At the time, BNK said the sale to XTO was meant to help pay for additional drilling in the Caney and for targets in Europe -- specifically, Poland and Spain.

Monday's operations update also included word from the Gapowo B-1H well in Poland. BNK said the "operations to retrieve downhole pressure gauges at the well were completed last week and a reservoir model analysis is underway." The company added that "scale in the tubing delayed operations, pushing the expected completion of the reservoir analysis to late November."

In Europe, BNK has been awarded five concessions totaling approximately 1 million net acres, which collectively overlay five basins on the continent. BNK has an interest in three total concessions in Poland totaling 804,209 gross (706,678 net) acres through a stake in Saponis Investments Sp. z o.o., and its subsidiary, Indiana Investments Sp. z o.o.

Meanwhile, in Spain BNK holds an interest in three concessions totaling approximately 334,000 acres through its indirect wholly-owned subsidiary, Trofagas Hidrocarburos SL. It has submitted an application for a fourth concession totaling 234,000 acres.

BNK holds 12,500 net acres in the Ardmore Basin, which is its only producing asset in the United States. The Caney Shale is the shallowest layer in the Ardmore and overlies the Sycamore Limestone and the Woodford Shale.

The company also holds 12,586 acres in the Appalachian Basin in New York; 5,854 acres in the Black Warrior Basin in Alabama; and 4,199 net acres in the Palo Duro Basin in Texas. BNK said it has no plans to develop acreage in these basins during the current fiscal year.

ISSN © 2577-9877 | ISSN © 2158-8023

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