BNK Petroleum Inc. announces that its 2018 drilling program is continuing with the drilling of the Brock 4-2H well in the Company’s Caney shale oil acreage in the Tishomingo Field which is located in the SCOOP region in Oklahoma. 

BNK is the operator of the Brock 4-2H well with a 77% working interest. A major oil company, who is the offset operator and owns the remaining working interest, elected to participate in this well. The rig has moved in, rigged up and is drilling. The Company will utilize its existing cash flow for its share of the costs.

BNK is also participating, with an approximate 33% working interest in the Anderson 1-5H10X3 well, which is a planned two mile lateral to be drilled in Section 10 and Section 3, also targeting the Caney formation. The well is located to the east of BNK’s Brock 9-2H well. The major oil company, who has the right to be the operator in this section, is expected to begin drilling the Anderson 1-5H10X3 in September.  

At the current price of oil at over $68 USD a barrel, our incremental netbacks for these wells are estimated to be over $37 USD a barrel, which represents a substantial contribution to the Company’s cash flow.