BNK Petroleum announced a 182% increase of its Tishomingo shale gas field reported proved and probable reserves ("2P") to 37.9 million boe from 13.5 million boe at year end 2008. Proved and Probable reserves as of December 31, 2009 were U.S.$241.2 million, up from 2008 year end of U.S.$187.8 million, calculated at a 10% pre-tax present value ("NPV") of future net revenue. Proved reserves ("1P") were up 198% to 24.9 million boe from 8.4 million boe at year end 2008. Unless otherwise stated, reserves refer to reserves of natural gas, natural gas liquids and crude oil expressed in barrels of oil equivalent ("boe"). Certain amounts cited herein have been rounded for presentation purposes.
The 2008 and 2009 year-end reports were both prepared by MHA Petroleum Consultants, LLC. ("MHA"), independent petroleum engineering consultants of Lakewood, Colorado. As a result of the Company's planned drilling and completion program on its existing properties in the Tishomingo Field, Oklahoma, all reserves that had been classified as probable reserves in the 2008 year-end report have been converted to proved reserves in the updated report, also prepared by MHA (the "2009 Year End Report"). All updated reserve estimates are effective as at December 31, 2009.
In December, 2008, BNK applied for and received approval to drill three additional wells in one of its sections at an 80-acre spacing pattern. An 80-acre spacing pattern would allow for eight wells per section which could allow for over 340 total gross wells for this project. To date the Company has drilled and participated in 39 gross wells in this project.
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