WHO WE ARE

BNK Petroleum Inc. was among the first companies to recognize that advances in horizontal drilling and completion technologies would enable the industry to access vast new natural gas supplies from unconventional reservoirs, such as shales and tight sandstones.

As part of Bankers Petroleum Ltd., BNK Petroleum Inc. launched its first project in Palo Duro, Texas, beginning with leasing acreage in 2005. Shortly after that, the company started drilling science wells in Palo Duro and made a strategic acquisition. In May 2006, it acquired unconventional assets in Oklahoma, Mississippi, Alabama, and New York. In 2008, the corporation sold its interests in certain oil and gas leases not part of the Tishomingo Field development in Oklahoma and its acreage in Mississippi and Alabama. However, it retained the right to earn back a 50% interest in the Mississippi and Alabama acreage, though this acreage has since expired.

With risk spread across multiple projects, BNK Petroleum Inc., still operating under Bankers Petroleum Ltd. at the time, began drilling numerous test wells in Oklahoma and New York. The company drilled its first promising vertical well in Oklahoma in late 2006, followed by the expansion of its operations in 2007 with four Woodford shale horizontal wells in the Carter/Johnson County project, now known as BNK’s Tishomingo field.

In 2008, following the spinout, the company sought ways to leverage its expertise in shale gas to drive growth. Recognizing that shale gas potential was not limited to North America, management and the board decided to explore opportunities in Europe, where they believed the demand for safe, clean natural gas would enhance energy security. In late 2008, the company applied for its first European shale gas concessions in Poland. Work continued in other countries and basins throughout 2008 and into 2009.

BNK was granted its first Polish concessions in March 2009, with additional concessions awarded in 2010. Also, in 2009 the company entered a farmout agreement, under which the majority of the company’s share of the first $25 million in gross exploration expenses for its initial Polish project was covered by the agreement partners. BNK continued to acquire concessions across Europe, ultimately securing more than 5 million acres in Poland, Germany, and Spain.

The company drilled five shale gas wells in Poland, including one horizontal shale gas well. However, in 2015, faced with a challenging oil and gas price environment and significant permitting difficulties in several European countries, the decision was made to exit Europe and refocus exclusively on North America.

In the Tishomingo field, from 2007 through 2012, the company drilled or participated in 39 Woodford shale gas wells, and in 2012, it drilled its first Caney shale oil well. In the first quarter of 2013, the company sold its approximately 12,500-acre Tishomingo field assets to XTO Energy Inc. for roughly $147 million in cash while retaining its interests in the Caney and Upper Sycamore Formations. By this time, the company’s Woodford shale gas reserves had grown to 13.5 million barrels of oil equivalent, predominantly natural gas. In the first quarter of 2013, 77% of production from the field was natural gas, with only 10% being oil.

Since drilling its first Caney shale oil well in 2012, the company has expanded its Caney and Upper Sycamore acreage to over 17,000 acres. As of June 2024, it has 32 horizontal Caney shale oil wells in production, 31 of which it operates. Its production stream in 2nd quarter of 2024, was 73% Oil, 16% NGL’s and only 10% natural gas. The company’s proved reserves at the end of 2023 have grown to 32.4 million barrels of oil equivalent (BOE), and its proved and probable reserves totaled 54.1 million BOE. Over the years, the company has refined its techniques for drilling Caney shale oil wells, optimizing the placement of laterals within the Caney Formation, and improving well completions. This year, the company is drilling its first longer lateral wells in the Caney Formation to enhance efficiency, production, and value.