Year end financials are out, below are some of the highlights from the MD&a and Annual Info. So the reserves went up over $1 million in value, but down in boed. Still, the Jensen pool "estimates" have not been added, yet the company confirms that it wants to go ahead with this pool. They must know something we don't from their "engineering tests" that took place in Q4. As well, at the bottom it says the directors hold 38.5% of the O/S, this Doesnt include Bilcox's recent purchase, none of the previous directors, or institutions that still hold shares. I still think DTX is a great JV/merger candidate for BNX because 3 of the 4 BNX land holdings coincide with Deethree's http://www.deethree.ca/portfolio.php and that Saskatchewan property might be a good foot in the door for the SK Bakken.
Received its 2011 Reserve Report from its independent Reservoir Engineering firm,
Insite Petroleum Consultants Ltd., formerly Paddock Lindstrom & Associates of
o A net present value of estimated future net revenue before tax, at BNP’s risk
free rate of 5%, from proved plus probable reserves is $2.685 million
compared to $1.662 million as at the end of December 2010. The increase in
value is directly attributed to an increase in oil commodity prices.
o Gross proved reserves of 45,900 BOE as of December 31, 2011 compared to
46,900 BOE as of December 31, 2010.
o Gross proved plus probable reserves of 133,000 BOE as of December 31,
2011 compared to 133,900 BOE of December 31, 2010.
Jensen 0 0 0 0 0 (994)
Stanmore/Sunnynook 7 77 31 7 70 27
Medicine River 2 23 (9) 3 30 (9)
Totals 9 100 10 100
The Jensen wells were shut in for most of 2011 with the exception of a two week test period in
November 2011. At December 31, 2011, the Jensen project awaits the implementation of an
onsite water disposal well and associated water disposal facilities which is contingent on the
availability of funds
During the year ended
December 31, 2011, 2,250,000 stock options were granted on September 30, 2011, and
250,000 options were forfeited during the year. As at December 31, 2011, 4,330,000 stock
options were outstanding at a weighted average exercise price of $0.21. As at December 31,
2011, BNP had 1,145,232 Class A share options available to be granted.
Acquisitions constitute an integral part of the Corporation’s ongoing business plan. Management has industry experience
in producing areas of Western Canada and has the capability to expand the scope of the Corporation’s activities and
opportunities through selective asset and corporate acquisitions. The Corporation finances acquisitions through a
combination of debt and equity. When reviewing potential participations or acquisitions, the Corporation considers the
following target criteria:
The opportunity must present identifiable and measurable upside, either through drilling, completions,
reservoir management or production/facility optimization;
Producing properties should exhibit low decline and long reserves life, typically greater than seven years;
Operatorship or the possibility of becoming operator;
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Ensuring facilities and infrastructure provide near-term market access, with capability of expansion to
accommodate increased activity;
Additional facility opportunities, particularly if there is a consistent stream of third party processing
income that could be increased through additional tie-ins, whereby facilities associated with the
acquisition of producing properties may represent up to 30% of total asset value;
Required return on investment from acquired producing properties should be at least 15% per annum,
with a recycle ratio greater than two;
All acquisitions, when fully exploited, should enhance the net asset value per share of the Corporation;
Utilizing commodity price and exchange rate assumptions from projections by major independent
petroleum engineering firms and future contract pricing.
The Corporation also seeks to participate in joint ventures that will create opportunities for exploration and drilling as well
as securing an undeveloped land base. The Corporation is selective when choosing joint venture parties but believes the
experience and profile of its management team will persuade acceptable parties to form and maintain exploration alliances.
These joint ventures are designed as reciprocal arrangements where each party identifies drilling opportunities.
The board of directors of the Corporation may, in its discretion, approve asset or corporate acquisitions or investments that
do not conform to these guidelines based upon the board’s consideration of the qualitative aspects of the subject properties
including risk profile, technical upside, reserve life and asset quality.
As of the end of the first quarter of 2012 BNP held 5,920 gross acres of land (2,400 developed, 3,520 undeveloped) and
5,280 net acres of land (2,080 developed, 3,200 undeveloped). As a part of the 5,920 gross acres, BNP holds 640 gross
acres in Northwestern Alberta, 640 gross acres in Central Alberta, 2080 gross acres in South Central Alberta, 1920 acres in
Southern Alberta and 640 acres in Saskatchewan.
BNP has a working interest of 100% in two wells drilled by BNP in the Jensen area. Upon additional work by a farmee, a
private Canadian company, BNP will have 50% in the other two wells at Jensen. The existing well and pressure data to
date suggest that this is one large light oil pool, and BNP is encouraged by this pool and its possible extent. The Jensen
lands are all freehold and exempt from the recent Crown royalty revisions, and the average freehold royalty is
approximately 27%. The farmee did not complete a tie-in from 5-4-3-20 W4M to 16-5-3-20 W4M and equalize in the
existing equipment and consequently did not earn an interest in the Jensen property. Subsequently BNP completed a share
for debt deal with “Privco” for its unearned interest at Jensen and onsite “Privco” equipment. Consequently BNP has
100% interest in the Jensen property
BNP has engaged the services of a consulting production engineer to review the production results and history of the BNP
Jensen wells. As a result of this review, a go forward Jensen Oil Battery Development plan was prepared.
Subject to available financing, BNP intends to go forward with its development and water disposal facility plans at Jensen
and evaluate additional opportunities throughout the general area.
Bakken exploration is continuing in other areas of Southeast Saskatchewan and BNP has acquired land in Southwest
Saskatchewan on another oil trend. Seismic evaluation is complete and a location is ready to license. Successful drilling
on this prospect could lead to a high impact 40 acre oil development program pending the availability of funds
As at March 31, 2012 the directors, officers and senior management of the Corporation, as a group, beneficially own,
directly or indirectly, 21,225,667 Class A Shares of the Corporation, or approximately 38.5% of the issued and outstanding
Class A Shares