BNK Hopeful about 2008 Drilling Program
BNK Petroleum is continuing with its 2008 drilling program of drilling and participating in 30 gross wells in the Tishomingo Gas Field in Carter and Johnston Counties of Oklahoma. To date in 2008, BNK Petroleum has drilled and cased seven wells and is currently drilling another six wells.
BNK Petroleum has also participated in another four non-operated wells, as part of its 30 gross well program, one of which has been cased. The first well of its 2008 drilling program, the Dunn 2-1H, was fracture stimulated in the 2nd quarter and as previously announced in Bankers' May 14, 2008 press release had an initial production rate of 2.7 million cubic feet a day (MMcf/d) along with 90 barrels of oil per day (bopd) on a three day test. This well is currently producing about 2.1 MMcf/d along with 160 bopd.
The casing repair work in BNK Petroleum's second well of the 2008 program, the Brock 6-1H has been completed and the well is currently being fracture stimulated. Gathering system rights of way and the laying of the gathering system is ongoing.
BNK Petroleum is hopeful that a meter upgrade will be completed by the end of July to remove the current 4 million cubic feet a day restriction on the temporary processing plant which is expected to increase production from all existing producing wells. BNK Petroleum's temporary processing plant would then have a processing capacity of about 6-7 MMcf/d. Alternatives for additional processing capacity are currently being negotiated with three different parties, including the installation of another 25 MMcf/d processing plant where BNK Petroleum would own a 50% interest.
BNK Petroleum is anticipating that additional processing capacity will be available beginning in August 2008 which will make it possible to fracture stimulate and put on production the additional wells that have already been drilled and cased.