BKX:TSX

BNK Petroleum Inc.

BNK Petroleum Inc. is an international oil and gas exploration and production company focused on finding and exploiting large, predominately unconventional oil and gas resource plays. Through various affiliates and subsidiaries, the company owns and operates shale oil and gas properties and concessions in the United States, Poland and Spain. Additionally, BNK is utilizing its technical and operational expertise to identify and acquire additional unconventional projects.
BKX:TSX

Expert Comments:

Brian Bagnell, Macquarie Capital Markets (3/11/16)
"BNK Petroleum Inc. reported Q4/15 production of 1,367 boe/d. . .Proven reserves increased by 48% year-over-year to 17.7 MMboe, while Proven + Probable reserves increased by 11% year-over-year to 41.4 MMboe. . .we are encouraged to see the company's well performance outperforming the reserve evaluator's proved developed producing (PDP) type curve. . .in our view, BNK Petroleum offers substantial upside to the current share price with a recovery in the WTI quote, and its credit facility will allow quick access to capital in that event. In the meantime, we believe the company has taken prudent measures to reduce costs and preserve its balance sheet."

"BNK Petroleum Inc. has one of the best assets in all of Oklahoma. It has continued to beat everybody's estimates in terms of the decline rates. It has been able to squeeze more oil out of every well in this play than anybody ever predicted. Those are the kinds of plays we like. We like those big growth opportunities with proven management. It also has come a long way in cutting costs. I think its G&A was cut by 50% year over year. We see great optionality for the ability to grow going forward. It will need a little bit of a better price just like everybody else, but we're comfortable holding it today because the cost adjustments it has been able to implement will allow it to survive this trough." read more >

Michael Charlton, Industrial Alliance Securities (12/16/15)
"We anticipate that BNK Petroleum Inc. will drill at least two more wells this year to advance the Caney development. . .we believe the Oklahoma asset has significant value and that the company has a logical buyer who has already purchased deeper gas production from it, making the sale of the shallower lighter oil likely."

Michael Charlton, Industrial Alliance Securities (11/9/15)
"As commodity prices continue to be depressed, BNK Petroleum Inc. management's global cost cutting efforts and minimal capital spending are helping to maintain positive cash flow and survive this low commodity price storm. BNK's reduced European operations along with Oklahoma's ongoing optimization resulted in an impressive 45% decline in general and administrative costs this quarter when compared to last year. The company's modifications to the Morgan Stanley credit facility will allow for quick redeterminations as the price of oil increases, allowing the company to quickly ramp up drilling in the Caney when the price of oil increases by 10% from current levels."

"BNK Petroleum Inc. is still a legacy holding. It's obviously a long-term position with some of the projects it's undertaken in Europe. Those will be slowed quite a bit given this price environment, but we like the acreage BNK has in Oklahoma, and the crude oil growth we've seen. We feel like the company is undervalued if you look at the reserves in the ground. At some point, that value will be realized." read more >

Brian Bagnell, Macquarie Capital Markets (8/14/15)
"BNK Petroleum Inc. reported Q2/15 CFPS of US$0.01, which was directly in line with our estimate. Production of 1,490boe/d beat our 1,233boe/d estimate due to the timing of production additions from the two most recent wells. . .the company's cost cutting efforts have resulted in G&A expenses dropping by 41% year over year (YOY) and operating costs (per barrel) dropping by ~34% YOY."

More Expert Comments

Experts Following This Company

Brian Bagnell – Macquarie Capital Markets
Michael Charlton, Analyst – Industrial Alliance Securities
Brian Hicks
Frank Holmes, Chairman – U.S. Global Investors
Samuel Pelaez , Investment Analyst – Galileo Global Equity Advisors Inc

The information provided above is from analysts, newsletters, the company and other contributors.

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Investing Highlights
 
2P Reserves of 37.4 MMboe; 3P Reserves of 70.4 MMboe
 
Strategy: Converting 3P reserves into Proven Category and Proving Up 6,000 Additional Acres
 
Current Market Cap Is a Fraction of Year-End U.S. Reserve Value
 
Additional Large Upside Potential from European Acreage; Looking for Farm-In Partners
BNK Petroleum Inc. Content