BNK PETROLEUM INC.
FIRST QUARTER 2016
Unaudited, expressed in Thousands of United States dollars, except as noted)
Quarter Ending March 31,
2016 2015
---- ----
Oil revenue before royalties $2,047 $3,600
Gas revenue before royalties 299 374
NGL revenue before royalties 323 143
--- ---
Oil and Gas revenue 2,669 4,117
Cash flow provided by operating activities 1,544 1,282
Capital expenditures (131) (4,318)
Statistics:
Average oil production (Bopd) 744 867
Average natural gas production (mcf/d) 1,702 1,397
Average NGL production (Boepd) 324 149
Average production (Boepd) 1,352 1,249
Average oil price ($/bbl) $30.24 $46.13
Average natural gas price ($/mcf) 1.93 2.97
Average NGL price ($/bbl) 10.96 10.68
Average price per barrel $21.69 $36.62
Royalties per barrel 4.91 8.24
Operating expenses per barrel 4.49 5.05
---- ----
Netback per barrel $12.29 $23.33
------ ------
Average price per barrel including commodity contracts $35.29 $44.37
Royalties per barrel 4.91 8.24
Operating expenses per barrel 4.49 5.05
---- ----
Netback per barrel including commodity contracts $25.89 $31.08
------ ------
The information outlined above is extracted from and should be read in conjunction with the Company's unaudited financial statements for the three months ended March 31, 2016 and the related management's discussion and analysis thereof, copies of which are available under the Company's profile at www.sedar.com [http://www.sedar.com/].
NON--GAAP MEASURES
The Company's Non-GAAP Measures are described and reconciled to to GAAP measures in the management's discussion and analysis which are available under the Company's profile at www.sedar.com [http://www.sedar.com/].
Cautionary Statements
In this news release and the Company's other public disclosure:
(a) The Company's natural gas
production is reported in
thousands of cubic feet
("Mcfs"). The Company also uses
references to barrels ("Bbls")
and barrels of oil equivalent
("Boes") to reflect natural gas
liquids and oil production and
sales. Boes may be misleading,
particularly if used in
isolation. A Boe conversion
ratio of 6 Mcf:1 Bbl is based on
an energy equivalency conversion
method primarily applicable at
the burner tip and does not
represent a value equivalency at
the wellhead. Given that the
value ratio based on the current
price of crude oil as compared
to natural gas is significantly
different from the energy
equivalency of 6:1, utilizing a
conversion on a 6:1 basis may be
misleading as an indication of
value.
(b) Discounted and undiscounted net
present value of future net
revenues attributable to
reserves do not represent fair
market value.
(c) Possible reserves are those
additional reserves that are
less certain to be recovered
than probable reserves. There is
a 10% probability that the
quantities actually recovered
will equal or exceed the sum of
proved plus probable plus
possible reserves.
(d) The Company discloses short-term
production rates. Readers are
cautioned that such production
rates are preliminary in nature
and are not necessarily
indicative of long-term
performance or of ultimate
recovery.
Caution Regarding Forward-Looking Information
This release contains forward-looking information including information regarding the Company's commodity contract hedges, anticipated results from the Company's cost reduction measures, the proposed timing and expected results of exploratory and development work including production from the Company's Tishomingo field, Oklahoma acreage, availability of funds from the Company's reserves based loan facility, the effect of design and performance improvements on future productivity, the Company's European projects, planned capital expenditure programs and cost estimates, planned use and sufficiency of cash on hand and cash flow from operations and the Company's strategy and objectives. The use of any of the words "target", "plans", "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements.
Such forward-looking information is based on management's expectations and assumptions, including that the Company will achieve a comparable level of hedging going forward in respect of its existing production, that the Company will achieve the results anticipated by management from its cost reduction measures, that the Company's geologic models will be validated, that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals, that previous exploration results are indicative of future results and success, that expected production from future wells can be achieved as modeled, declines will match the modeling, future well production rates will be improved over existing wells, that rates of return as modeled can be achieved, that recoveries are consistent with management's expectations, that additional wells are actually drilled and completed, that design and performance improvements will reduce development time and expense and improve productivity, that discoveries will prove to be economic, that anticipated results and estimated costs will be consistent with managements' expectations, that all required permits and approvals and the necessary labor and equipment will be obtained, provided or available, as applicable, on terms that are acceptable to the Company, when required, that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays or labor or contract disputes are encountered, that the development plans of the Company and its co-venturers will not change, that the demand for oil and gas will be sustained, that the Company will continue to be able to access sufficient capital through financings, credit facilities, farm-ins or other participation arrangements to maintain its projects, that funds will be available from the Company's reserves based loan facility when required to fund planned operations, that the Company will not be adversely affected by changing government policies and regulations, social instability or other political, economic or diplomatic developments in the countries in which it operates and that global economic conditions will not deteriorate in a manner that has an adverse impact on the Company's business and its ability to advance its business strategy.
(CONTINUA)
