Exploration & Production | Drilling & Completions
BNK Fracs Well Targeting Caney Shale Oil; Talks Performance
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BNK Petroleum Inc. reported an update on its Tishomingo Field, Caney shale oil operations in Oklahoma.
The Company has fracture stimulated 30 percent of Emery 17-1H well (98.7% interest). The Company has decided to flowback the well at this time and fracture stimulate the rest of the lateral at a later date. The well began flowback today.
The Company has just finished drilling the Nickel Hill 36-3H well (99.4% interest) and has cemented the casing in place. The Company employed revised drilling practices on the Nickel Hill 36-3H that were successful in avoiding some issues encountered in the Emery 17-1H well. The Emery 17-1H issues impacted drilling time and cost and necessitates remedial work prior to fracture stimulation of the rest of the lateral. The Company expects to utilize these new drilling practices in future Caney wells and believes they will enable significant future savings. After drilling the Nickel Hill 36-3H well the Company’s net acreage in the Tishomingo Field has increased to about 16,200 acres.
The Company’s existing Caney production is declining at a slower rate than forecast in the reserves report for the year ended December 31, 2013 and in management’s opinion is performing very well. However, given the oil price drop over the last few months, the Company is taking a conservative approach to capital expenditures. Accordingly, the Company has released the drilling rig and will postpone the completion of the Nickel Hill 36-3H well and the fracture stimulation of the rest of the Emery 17-1H well. The Company is also evaluating cost saving measures.