BNK Awarded Cantabrian Basin Shale Gas Concession

BNK Petroleum Inc has been awarded an oil and gas concession covering an area of 86,000 acres in the Cantabrian basin of Spain.

The Sedano oil and gas concession is located in the Castile and León community in northwestern Spain.

The company is required to drill a well and begin a second well within the first year, another in the second year, and three more within years three and four.

BNK says the concession will mostly target Jurassic-aged shale gas in the basin, but says the acreage also has potential for conventional oil and gas. Current estimates put the shale, a Type II Kerogen with Total Organic Carbon content ranging between 1.3 and 5.0 percent, at between 100 to over 200 metres in gross thickness at depths of about 2,500 to 4,500 metres. BNK says that of the dozens of previous oil and gas wells drilled in the region, gas and/or oil shows were found in the shale interval as well as in fractured carbonates both above and below the shale. These fracture carbonates will form the conventional targets.

President and CEO of BNK Wolf Regener said that the company sees great potential for shale gas in the basin.

"We are pleased to have acquired another concession in what we believe is a basin with excellent shale gas potential," he said.

"Our plan is to develop Spanish shale gas in an environmentally safe manner and create additional regional employment opportunities. We are looking forward to working with Spain's local, regional and federal governments to generate growth, while ensuring a balanced environmental approach.

"Being at the forefront of implementing the best available environmental technologies and methods is an integral part of the company's business plan. In the coming months we plan to expand our current open dialogue policy and communicate with all stakeholders to provide information and address any questions that may arise."

The Sedano oil and gas concession was awarded to Trofagas Hidrocarburos S.L., a wholly owned subsidiary of BNK.