You may download electronic copies from the Investor Relations section of our website under "Annual & Quarterly Reports" and "SEDAR Filings." Additional filings can be found at “www.sedar.com”. If you would like us to send you a printed version, please go to the Contact Us Page, and fill out an information request.
If you are a BNK Petroleum Inc. registered shareholder (i.e. hold your stock directly in your own name), you should contact our transfer agent, Computershare Investor Services Inc., at 1-866-331-6360 Ext. 6884 You can also make the change online by logging into: www.computershare.com and click on Investor center. For name changes a securities transfer form will need to be submitted. You can access the form on the computershare website. If your BNK Petroleum Inc. stock is held in street name through your stockbroker, changes must be made with your brokerage firm.
If you are a BNK Petroleum Inc. registered shareholder (i.e. hold your stock directly in your own name), you should contact our transfer agent, Computershare Investor Services Inc. at 1-866-331-6360 Ext. 6884. If your BNK Petroleum Inc. stock is held in street name through your stockbroker, changes must be made with your brokerage firm.
If you are a BNK Petroleum Inc. registered shareholder (i.e. hold your stock directly in your name rather than through a stockbroker) you should contact our transfer agent, Computershare Investor Services Inc. at 1-866-331-6360 Ext. 6884.
Local authorities are involved in the concession granting process. In the case of an exploration concession, opinions of local mayors from communes covered by the intended concession area are required, while in the case of the production concession, consent of the local mayor’s from the area covered by the concession application is required. The latter consent is to determine whether the intended production activity is compliant with the purpose or the manner of the use of the real property concerned, as set forth in the local spatial development plan or – should there be no such plan – in the study of conditions and directions of spatial management; and if it is compliant, the consent should be granted.
Also, the issuance of either an exploration or a production concession typically needs to be preceded by obtaining an environmental decision. This process involves local authorities, in particular the local mayor and the Regional Director for Environmental Protection.
Exploration concessions are issued by the Minister of the Environment, following a complex administrative procedure which involves the participation of other authorities.
Under the new Geological and Mining Law (January 1, 2012), the general principle is that exploration concessions shall be granted in the course of a tender process governed by non-discriminatory rules and giving priority to the best exploration systems (for example, technological and technical solutions that are to be used by the applicants). Prior to issuing an exploration concession, opinions from local mayors need to be otained by the Minister of Environment.
For seismic works there is no separate permit that would be required. Generally, these works are conducted based on the concession permits as they constitute geological field works. However, to conduct seismic works the seismic contractor needs to obtain consents from landowners on whose land such works shall be performed.
For drilling, the situation is similar to seismic works, meaning that there is no separate permit required. Drilling is conducted also based on the concession permit with an additional decision of the Mining Authority approving the drilling operation plan required (this decision is consulted with local authorities).
For a production concession, the procedure is more complex and there are basically four major requirements that need to be fulfilled to be granted a production concession:
Evidence of the existence of mineral deposits (in the case of BNK and its project companies - shale gas deposits) and approval of geological documentation of such;
Prepare the deposit development plan;
Determine the 'mining area' (the area where gas is to be produced) as well as the 'mining impact area' which is potentially a broader area than the 'mining area' and covers land where potentially negative consequences of mining works can possibly be observed;
Undergoing an Environmental Impact Assessment for the production stage.
Furthermore, with regard to both types of concessions (exploration and production), it is worth stressing that they have to be accompanied by a mandatory mining usufruct agreement executed between the entity which was granted the concession and State Treasury (represented by the Minister of Environment). Based upon this agreement, the State (as the owner of mineral deposits) entitles a concession holder to use the deposits in return for a mining usufruct fee.
Each shale development project is different. At this stage of the exploration process, it is difficult to predict exactly what the exploitation process will look like. In Europe, BNK would utilize common drilling ‘pad’ sites to drill multiple wells from the same surface site. We estimate that the distance between these ‘pad’ sites would be 4 to 6 kilometers apart. BNK has and will continue to consider each step of the exploration and development processes with the same corporate philosophy of:
Biogenic gas is natural gas produced by the decomposition of organic matter at shallow depths and at low temperatures (such as compost) while thermogenic natural gas (conventional and unconventional) is produced very deep in the earth at high temperatures and pressures. It is very easy to distinguish them apart using specific measuring tools.
Production of natural gas from shale rock formations is safe and is achieved using the same operating practices as conventional natural gas. BNK adheres to local, regional, national and European regulations concerning its extraction. In addition, BNK follows industry best standards and practices and has the experience, and knowledge to ensure safe operations and production
BNK expects to use approximately 2,000 m3 during the drilling phase and approximately 1,000 m3 per hydraulic stimulation stage. For a vertical well, we usually perform 1 hydraulic stimulation stage while a horizontal well may require between 5 and 10 stages. A well is only hydraulically stimulated once in its life and existing technologies allows up to 99% of the water recovered to be recycled and used in other wells. As a comparative example, an Olympic size pool has a volume of approximately 3.000 m3 .
During the exploration phase, one wellsite is approximately between 100 m x 130 m (See one of BNK's wellsites). During the development stage, this area would accommodate 6 to 10 horizontal wells and thus minimizing the surface footprint.
It is difficult to fully answer this question until the exploration phase is completed and all data has been fully analyzed. However, in a viable shale development project, BNK expects to drill approximately 6-10 horizontal wells per wellsite with each small wellsite approximately 4-6 km apart.
The drilling process lasts between one and two months (see an actual drilling rig) while the preparation works for the hydraulic stimulation lasts only a few days. Each individual hydraulic stimulation usually lasts only a few hours and depends on the number of stages and shale rock characteristics. The production process depends on the amount of natural gas present and can last between 3-50 years (see an actual producing wellhead).
Natural gas extraction from shale rock formations involves several proven technologies which have been used safely for decades. Drilling for gas in shale rock formations is exactly the same process used in drilling for natural gas from other type of rock formations for well over one century. Hydraulic stimulation is a proven technology used for over 60 years. As of 2012, it is estimated that well over two million hydraulic fracture treatments have been performed. The combination of both horizontal drilling and hydraulic stimulation has made it economically feasible to develop unconventional formations, like deep layers of shale rock, where we previously could not recover the oil and gas held within them.
The natural gas produced is odorless. The smell you may be familiar with when smelling natural gas is a chemical called mercaptan and is not related to the drilling or production process. It is added by the natural gas distribution company to identify leaks in its distribution system.
Conducting seismic does not necessarily guarantee the drilling of an exploration well. Drilling an exploration well depends on results from geological studies and seismic interpretations, overall wellsite selection process and acceptance from the community.
In our experience we have never had a failure of the system. The team conducting the hydraulic stimulation is highly experienced and has conducted similar operations on numerous occasions. Moreover, in addition to everything being pressure tested prior to the hydraulic stimulation process, we have several redundant safety precautions and safety mechanisms to prevent this from occurring. This ensures the protection of People, Nature and Infrastructure which is BNK’s key mandate.
Hydraulic stimulation (or fracturing/fracking), is used as part of the process to complete a well and to stimulate production from rock formations by pumping a sand-water mixture at a controlled pressure high enough to crack the rock. Small fractures extend out from the well within the shale formation and creates pathways for the natural gas to flow into the well.
The fracturing water (flowback) flows back out of the rock formation into the well and then into steel tanks at the surface. This fluid is either recycled/re-used or treated and disposed of according to stringent regulations in place. The small amount of water which is not immediately recovered returns slowly over time through the isolated wellbore or remains trapped thousands of meters below the surface in the shale formation via adsorption into clays.
The final composition of the additives used is highly dependent on the rock characteristics of the shale formation which is unknown until wells are drilled. The core recovered (rock samples) during the drilling process provides this information following detailed rock mineralogy analysis. BNK’s mandate is to continue to utilize the most environmentally friendly additives available.
No. The gas which created the burning tap is from dissolved methane in water and was present years before any drilling occurred in the area. This is biogenic gas (which is naturally occurring) and not thermogenic gas (created from organic matter at high pressure and high temperatures and at great depths). This gas has been present in the local groundwater for many years prior to gas well drilling and hydraulic fracture began - this phenomenon occurs in many areas throughout the world. It is possible to identify each type of natural gas and this has been confirmed by the State of Colorado Oil and Gas Conservation Commission.
In addition to proper well design, the three casing strings and specialized cement in place to prevent any of the fracturing water from entering the groundwater aquifers, we also have, monitoring controls in place to confirm this isolation.
The well design used by BNK prevents fracturing water/natural gas from migrating upwards to the groundwater aquifers. This has been proven over decades of experience. It is impossible for the small fractures created by the hydraulic fracture stimulation to reach the groundwater aquifers due to the lack of energy, the multiple layers of rock and great distance between the shale formation and the groundwater aquifers.
The additives used by BNK are either non-toxic or inert. Even though chemical additives are carefully managed, highly diluted and separated from all aquifers, BNK’s mandate is to continue to utilize the most environmentally friendly additives available.
An Environmental Impact Assessment (EIA) is a technical study which evaluates in detail the potential impact of the exploration projects on animals,plant and the overall surrounding environment (Natura 2000, parks, habitats, etc.) including below the surface. In addition, at a minimum, the EIA must also evaluate the potential impacts on surrounding structures, historical landmarks, archeological locations, local inhabitants, air and noise, transport and waste disposal. The EIA is then submitted to relevant agencies within the local, regional and/or national governments for review, discussion and approval.
BNK's experience, adherence to best industry standards and regulations, helps ensure minimal to no consequences to the environment. In addition, to confirm everything proceeds correctly, BNK monitors air, soil and water samples before we drill our first well and continualy during and afterwards.
The environmental impact assessment performed prior to drilling any well ensures that all wildlife and plant life, amongst other things, are properly preserved and protected.
Each area is thoroughly investigated during the PERA and the Environmental Impact Assessment to ensure BNK does not affect the environment where it works. There are strict legal provisions which limit the possibility of conducting exploration activities in these areas and BNK always complies with such provisions.