BNK Petroleum almost a new company
BNK Petroleum is a company I have followed for only a little while.I started blogging about it on my Tumblr blog and found it fairly hard to predict.It is in an unique situation because it sold all of it's producing assets in April 2013 for cash and bought new properties.I forecasted a share price of close to $2.00 for 2015.Shortly after it moved to $.95 and then like all oil stocks it fell again . Now it is about $.35.It has streamlined it's production costs but still is not increasing it's production much nor it's revenues.BNK has been working on a new well for awhile called Hartgraves 1-5H and it only came into production in October,2014.It had original production of 530 barrels per day and now it is producing about 620 barrels per day.Its' natural gas well in Poland has not yet spudded and is being analyzed for flowback and reservoir size.BNK intends to form a joint venture once the reservoir size is known. On the positive side BNK has obtained a $100 million credit facility and has only used $16 million here.This is good news because BNK,in general, is not being active enough to increase revenues and earnings.Their new credit facility will help!
BNK had a good first quarter and reported $250,000 net income.My blog on Tumblr predicted possible annual net income of $3 million as it assumed production from the wells it was working on plus new production in a promising field called the Caney fields.However production stalled and net income came in at $200,000 for Q2 and a loss for Q3.
Accurate but not very active
BNK's drilling success rate is high but it has not been drilling enough.For example, it already drilled but now is redrilling a lateral portion of a well called Emery 17-1H.Also it has a good success rate in this area called the Caney fields but it has not drilled even one new well here.It's capital expenditures have decreased from Q3 2013 by almost 40%.It has been working on a natural gas well in Poland called Gapowo B-1.But it still hasn't flowed gas here and is now trying to estimate the reservoir size so it can enter into a joint venture.
Onwards and Upwards
BNK must be looking for better news in Q4.Production at it's latest well has increased since initial production.It's Emery well is expected to spud in November.It may have news on the reservoir size in Gapowo B-1 and a possible joint venture partner.It now has an unused credit facility and may start new drilling in the Caney fields.It seems like they need to know more about the size of the reservoir here and likely "hot spots" to discover other wells.Some of this may happen in Q4 but don't expect BNK to hit $1.25 a share this winter;it may not hit $.60 without more active drilling.My blog on Tumblr sure made a bad forecast on this stock.
BNK had a good first quarter and reported $250,000 net income.My blog on Tumblr predicted possible annual net income of $3 million as it assumed production from the wells it was working on plus new production in a promising field called the Caney fields.However production stalled and net income came in at $200,000 for Q2 and a loss for Q3.
Accurate but not very active
BNK's drilling success rate is high but it has not been drilling enough.For example, it already drilled but now is redrilling a lateral portion of a well called Emery 17-1H.Also it has a good success rate in this area called the Caney fields but it has not drilled even one new well here.It's capital expenditures have decreased from Q3 2013 by almost 40%.It has been working on a natural gas well in Poland called Gapowo B-1.But it still hasn't flowed gas here and is now trying to estimate the reservoir size so it can enter into a joint venture.
Onwards and Upwards
BNK must be looking for better news in Q4.Production at it's latest well has increased since initial production.It's Emery well is expected to spud in November.It may have news on the reservoir size in Gapowo B-1 and a possible joint venture partner.It now has an unused credit facility and may start new drilling in the Caney fields.It seems like they need to know more about the size of the reservoir here and likely "hot spots" to discover other wells.Some of this may happen in Q4 but don't expect BNK to hit $1.25 a share this winter;it may not hit $.60 without more active drilling.My blog on Tumblr sure made a bad forecast on this stock.
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