The Energy Report: Wolf, how did you become involved with BNK Petroleum Inc. (BKX:TSX)?
Wolf Regener: I was one of the people who got Bankers Petroleum Ltd. (BNK:TSX) into the U.S. shale business originally. I decided to do something else with that business and convinced the board and shareholders to spin BNK out of Bankers Petroleum and into our own entity.
TER: What is your background in the oil and gas sector?
WR: I’ve been in the oil and gas business for about 28 years, doing everything from land work to operations to dealing with finances.
TER: What do you and your management team bring to the table at BNK?
WR: We bring a team that has been doing shale gas and shale oil for nearly 10 years, and we have a lot of people in the company who bring a lot more than 10 years’ oil and gas experience. We’ve shown that we can build up an asset and then monetize it, as we did with the Woodford shale, which we sold to Exxon Mobil Corp. (XOM:NYSE) for $147 million ($147M) in a down gas-price environment.
TER: What are BNK’s principal selling points?
WR: We have a great, low-risk asset base with the Caney shale in Oklahoma, which we feel has a very large upside value potential. Last year’s reserve report had 37 million barrels (37 MMbbl) of proven and probable (2P) reserves and more than 70 MMbbl proven, probable and possible (3P) reserves. The 2P number was $500M and the 3P number was $875M. In addition, these reserves were on only 63% of our acreage. But we have a lot of geological data that support those numbers, because we drilled wells through the Caney into the Woodford when we developed that.
We have a play that gets better and better every …read more