BNK Petroleum Reports Gas Shows at Poland Well

BNK Petroleum announced that the Gapowo B-1 well, on the Bytow Concession in Poland held by its 100% owned subsidiary, Indiana Investments Sp. z o.o., has been drilled to a depth of approximately 4,300 meters.

Two separate concession modifications were applied for and approved to deepen and allow the Silurian, Ordovician and Cambrian Alum shales to be accessed in both the Gapowo B-1 and the Miszewo T-1 wells.

During the drilling and coring of the Gapowo B-1 well, over pressured shales were encountered in the Lower Silurian and Ordovician. Substantially higher gas readings were regularly recorded in the target intervals than those in the previously drilled wells on the Company’s Saponis concessions. The average total gas readings were over 20 times higher and maximum total gas readings were over 45 times higher than those seen in the Lebork S-1 well. These higher gas shows occurred despite the significantly higher-weight drilling muds used in the Gapowo B-1 well and the related slower rates of penetration. The Company is in the process of obtaining approval to re-enter and drill a horizontal well from this wellbore as early as possible.

The geologic data gathered to date validates the Company’s previously disclosed geologic model. At the Gapowo B-1 location, the Ordovician shale increased to 45 gross meters from the 27 gross meters in the Lebork S-1 well. In addition, based on the data received to date, the Company believes that the most prospective shale intervals in the Lower Silurian are between 40 to 75 gross meters thick, out of 120 meters of Lower Silurian that had significant gas shows. This is in contrast to the Lebork S-1 well where within the Lower Silurian, the Company only considers a few meters to be prospective. The Lower Silurian, in the Gapowo B-1 location, also appears to have higher total organic carbon (TOC) than that encountered in the Company’s previously drilled wells. The higher estimated TOC is based on the very strong gas shows, mud log descriptions and core gamma visual core inspection. The shales in both the Silurian and the Ordovician are described by the mud loggers as visually dark black, friable shale and occur over the same intervals that generated the large gas readings. These are better and darker descriptions than in any of the other wells that BNK has drilled in the Baltic Basin.

After reaching its TD, difficulty was encountered in obtaining wireline logs over the potential interval due to over pressured, heaving shales within the target intervals, causing large borehole washouts. As a result of these large borehole washouts, logging while drilling tools (LWD) were substituted and the data capture was reduced. These washed out intervals are the same shales that are described by the mud logger as being dark black and also correspond to the intervals that gave the very large gas readings. Fortunately, 177 meters of whole core were obtained over the Lower Silurian, Ordovician and Cambrian intervals which will provide additional necessary data moving forward. Processing is underway on the whole core, which will undergo the comprehensive suite of core analyses.

The Gapowo B-1 well is currently suspended awaiting the re-entry and the drilling rig is currently in the process of mobilizing to the Miszewo T-1 well. Deepening operations to access the target intervals in the Miszewo T-1 well are anticipated to begin in about 2 weeks. The Company has scheduled to re-enter and complete the Gapowo B-1 well after receipt of the full concession modification approval that allows the drilling of horizontal wells.

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LNG World News Staff, August 14, 2012; Image: BNK Petroleum