After proving out SCOOP shale acreage, BNK eyeing options

By Luke Geiver | March 25, 2019

BNK Petroleum is looking to optimize its capitalization efforts and growth prospects in the SCOOP play of Oklahoma. The exploration and production company has proven out a 17,000-plus acreage position is now able to fully develop its acreage. The company’s Tishomingo Project has significant value, the company believes. BNK operates 17 wells there currently but expects to develop more than 185 wells. Wells in the project are projected to generate 33 percent initial rate of return at $55/b WTI oil prices. The main zone targeted is the Caney, but BNK said there are up to three other potential zones that could be targeted.

“BNK has successfully driven early stage, high impact exploration success resulting in significant oil reserves at the Tishomingo Project,” the company said. “The next phase of development and associated exploitation of these resources could be better suited within an entity with a lower cost of capital.”

BNK has brought on Macquarie Capital Markets Canada Ltd. as a financial advisor for a comprehensive review and analysis of several strategic options BNK may be able to take with its Tishomingo assets.

Starting in 2013, BNK has shifted its focus to liquids, mainly in Oklahoma.