BNK Petroleum Inc. Announces Sale of Woodford Assets; Accelerates Drilling in BNK's Caney Formation

Sun Mar 17, 2013 3:28pm EDT

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BNK Petroleum Inc. Announces Sale of Woodford Assets; Accelerates Drilling in BNK's
Caney Formation

CAMARILLO, California, March 17, 2013 /PRNewswire/ --

    TSX ticker symbol; BKX  

    BNK Petroleum Inc. (the "Company") (TSX : BKX) is pleased to announce that its
indirect wholly owned subsidiary BNK Petroleum (US) Inc. ("BNK US") has entered into a
Purchase and Sale Agreement with XTO Energy Inc. ("XTO"), a subsidiary of Exxon Mobil
Corporation, for the sale by BNK US of its Tishomingo Field, Oklahoma assets other than
the Caney and upper Sycamore formations, for US$147.5 million, subject to customary
closing adjustments.  

    Subject to completion of customary conditions, the transaction is expected to close
in late April. If the transaction is completed, the proceeds of the sale are expected to
be used to accelerate the drilling of Caney wells in the Tishomingo field, the Company's
ongoing exploration efforts in Europe and for repayment of the Company's credit

    Wolf Regener BNK's President and CEO, stated: "We are very pleased to announce this
transaction, which is the culmination of the Company's efforts to maximize the value of
our Woodford shale gas assets. The transaction is also structured to preserve our rights
in the relatively undeveloped Caney and Upper Sycamore formations in the Tishomingo
Field. We believe these intervals represent a promising opportunity to develop new oil
reserves and production, in an area in which we have a successful operating history. If
completed, this transaction will provide the Company with sufficient funds to accelerate
our planned Caney development and flexibility to pursue our exciting European projects
on our own or with partners."  

    Macquarie Capital Markets Canada Ltd. is the lead financial advisor to the Company
in connection with this transaction, and has delivered an opinion to the Company's board
of directors that, as of the date hereof and based upon and subject to the assumptions,
limitations and qualifications set forth in the opinion, the consideration to be
received by the Company pursuant to the transaction is fair, from a financial point of
view, to the Company.  

    Update on Caney Development  

    A drilling rig is currently mobilizing to the next planned Caney well, the Barnes
6-3H well. Once it is rigged up, drilling is expected to begin immediately. The drilling
rig has been contracted for two wells with the option for two additional wells.  

    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, Spain and
Germany. 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.  

    Caution Regarding Forward-Looking Information  

    Certain statements contained in this news release constitute "forward-looking
information" as such term is used in applicable Canadian securities laws, including
information regarding the sale of the Company's Woodford shale, Tishomingo assets (the
"Proposed Sale"), the anticipated use of proceeds from the Proposed Sale and
Sycamore/Caney wells development. Forward-looking information is based on plans and
estimates of management and interpretations of exploration information by the Company's
exploration team at the date the information is provided and is subject to several
factors and assumptions of management, including that the conditions to completion of
the Proposed Sale will be satisfied and that the Proposed Sale will be completed as
expected, that indications of early results are reasonably accurate predictors of the
prospectiveness of the shale intervals, that required regulatory approvals will be
available when required, that expected production from future wells can be achieved as
modeled, declines will match the modeling, future well production rates will be improved
over existing wells, that rates of return as modeled can be achieved, that recoveries
are consistent with management's expectations, that additional wells are actually
drilled and completed, that no unforeseen delays, unexpected geological or other
effects, equipment failures, permitting delays or labor or contract disputes are
encountered, that the development plans of the Company and its co-venturers will not
change, that the demand for oil and gas will be sustained, that the Company will
continue to be able to access sufficient capital through financings, farm-ins or other
participation arrangements to maintain its projects, and that global economic conditions
will not deteriorate in a manner that has an adverse impact on the Company's business,
its ability to advance its business strategy and the industry as a whole.
Forward-looking information is subject to a variety of risks and uncertainties and other
factors that could cause plans, estimates and actual results to vary materially from
those projected in such forward-looking information. Factors that could cause the
forward-looking information in this news release to change or to be inaccurate include,
but are not limited to, the risk that any of the assumptions on which such forward
looking information is based vary or prove to be invalid, including that the conditions
to completion of the Proposed Sale will be not be satisfied or that the Proposed Sale is
otherwise not completed in the anticipated timeframe or at all, the Company or its
subsidiaries is not able for any reason to obtain and provide the information necessary
to secure required approvals or that required regulatory approvals are otherwise not
available when required, that unexpected geological results are encountered, that
completion techniques require further optimization, that production rates do not match
the Company's assumptions, that very low or no production rates are achieved, that the
Company is unable to access required capital, that occurrences such as those that are
assumed will not occur, do in fact occur, and those conditions that are assumed will
continue or improve, do not continue or improve, and the other risks and uncertainties
applicable to exploration and development activities and the Company's business as set
forth in the Company's management discussion and analysis and its annual information
form, both of which are available for viewing under the Company's profile at, any of which could result in delays, cessation in planned work or
loss of one or more concessions and have an adverse effect on the Company and its
financial condition. The Company undertakes no obligation to update these
forward-looking statements, other than as required by applicable law. 

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        For further information:
        Wolf E. Regener +1-(805)-484-3613


BNK Petroleum Inc.
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