BNK Announces Results for Lebork S-1 Well
BNK Petroleum Inc. announced that the Lebork S-1 well, on the Slupsk concession in Poland, in which the Company has an indirect 26.69% interest, has been drilled, cased and cemented to its total depth of 3,590 meters.
The well was originally drilled to 3,517 meters and 223 meters of whole core were recovered. At that time a full suite of logs were run. After evaluation of the logs it was decided to deepen the well to its final depth of 3,590 meters, after which another full suite of logs were run and 113 sidewall cores were taken over the additional interval drilled.
The whole core and sidewall cores were taken to fully evaluate the physical parameters of the rock. These analyses will provide, among other data: porosity, permeability, total organic carbon, rock eval pyrolysis, thermal maturity, gas composition, micropaleontology, and mechanical properties. During drilling, numerous gas shows were recorded over 285 meters of the Lower Silurian, Ordovician and Cambrian shales. The gas shows consisted of mainly methane gas. The strongest gas shows were in the Cambrian shale though gas shows in the other intervals may have been diminished due to whole coring of the other intervals.
Consistent with projections, the two primary shale target intervals were thicker in the Lebork S-1 well than in the Wytowno #1 well. The Ordovician shale interval in the Lebork S-1 well is approximately 91 meters thick, which is slightly thicker than the 83 meters found in the Wytowno #1 well. The Cambrian shale also thickened to 15 meters from the 9 meters found in the Wytowno #1 well. This provides further support for the Company’s hypothesis of an increasing thickness trend that may continue into deeper portions of the basin.
The Company anticipates receiving all core analysis back by the 3rd quarter. Analyses of the sidewall cores from the Wytowno #1 well are still pending. The suite of Schlumberger open hole logs that were run in the Lebork S-1 well will be calibrated using the core data to more precisely evaluate the potential pay sections. The log suite in the Lebork S-1 well currently calculates the highest gas and best properties in the Cambrian shale interval followed by the Ordovician shale interval. The uncalibrated log suites of both wells currently indicate higher gas calculations in the Ordovician interval in the Lebork S-1 well than in the Wytowno #1 well, which may change after the logs are calibrated. During the 3rd quarter it is anticipated that the completion will be designed and the first intervals in each well will be fracture stimulated.
The cost of the Lebork S-1 well at rig release, with casing in the ground and including the additional deepening, sidewall cores and second set of logs is to date approximately US$5.6 million. The current estimated cost of the Lebork S-1 well, before completion, but including all future core analysis work, is US$6.5 million. Despite the unanticipated deepening of the well, the total drilling costs are only US$0.1 million above the original drilling budget. The drilling rig will stay on location until the end of May at which time it will begin mobilizing to the Starogard concession to begin drilling the first well on that concession in mid June.
The Wytowno #1, Lebork S-1 and Starogard wells are being drilled by one of the Company’s subsidiaries as Manager for Saponis Investments Sp z o.o.. The Company owns approximately 26.7 per cent of Saponis with remaining ownership with Rohöl-Aufsuchungs Aktiengesellschaft, Sorgenia E&P SpA and LNG Energy through its subsidiary.
The Company is obliged to pay approximately 6.69 per cent of the drilling costs of these first three wells. The other 20 per cent of the Company's share is paid by RAG and Sorgenia under the terms of the Company's farmout to RAG and Sorgenia. The Company holds 195,000 net acres in the Baltic Basin of Poland through Saponis and a further 880,000 adjacent net acres through another European subsidiary.
Source: BNK Petroleum