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Early BKX Caney Data Looks Good

|Includes:BNK Petroleum, Inc. (BNKPF)

BKX Caney Update

Last night BKX Petroleum (OTCPK:BNKPF) released early results (link to the news release here) from the Barnes 6-3H well. I believe they did this before the well clean-up was finished so that they could talk about the well performance at today's AGM.

In brief, the result shows oil cuts increasing earlier in the frac fluid recovery process than the Barnes 6-2H well. Only 11% of the frac fluid has been recovered, but the well is already producing 120 bopd. For context, the "exploratory" Barnes 6-2H well didn't see any oil until over 20% of the load fluid was recovered. Based on this early data, I expect the Barnes 6-3H to effectively "prove up" the Caney play in that portion of BKX's lands. The company seems to have a positive outlook as well, as they reported that they are moving on to frac the recently completed Dunn 2-2H well, and have now started drilling a third well on their acreage.

In line with the comments in my initial article, I believe this may translate into nice gains for patient shareholders as the well cleans up full over the next 2-3 weeks and other wells and frac'd and drilled going forward.

Disclosure: I am long OTCPK:BNKPF.

Stocks: BNKPF