CALGARY, ALBERTA--(Marketwired - March 20, 2015) - (NEX:BNX.H) - David Doody, of Cottam, Ontario has been appointed as an interim director of BNP Resources. Dave earned a Bachelor of Mechanical Engineering degree from the Technical University of Nova Scotia in 1987 and currently holds 5,762,300 shares of BNP Resources.
Management of BNP continue to meet with potential new management teams, joint venture partners, property vendors and are actively seeking a Venture listed shell company. We are also working on other deals to bring in new investors, through producing property investment, from the USA. We have held discussions with NYC brokers in 2014 and feel that a $50 million dollar deal can be completed, pending a strong management team, an experienced board of directors and a minimum of 500 barrels per day of initial production. The NYC brokers have also indicated that a private company is the preferred vehicle for institutional investment, as they are not required to prepare mark-to-market valuations for their holdings each day.
Our goal is to create a privately funded "Newco", assemble an experienced management team, board of directors, 500 boe/day of initial production, and finally, raising $50 million in private equity. BNP would create a privately funded "sidecar" company, with $5 million in private equity, and work with "Newco", through a farm in agreement and shared management.
Once "Newco" and "Sidecar" are funded, we would start working towards raising equity for the public company (BNP), and work towards getting the shares trading on the exchange once again. As the three companies ("Newco", "Sidecar" and BNP) work together in the same core areas, BNP would focus on the higher risk exploration opportunities, seeking out new oil pool discoveries, and growth by the drillbit, while "Newco" would focus on the lower risk development drilling opportunities. "Sidecar" would focus on farm in opportunities with "Newco", including the building of the oil battery.
As the Del Bonita area is lacking infrastructure, BNP would also work on development of the roads, disposal wells, separators, heater treaters, power generation and three-phase power distribution. Once three-phase power distribution is installed, it will open up new areas to more cost effective development. Recent success has been achieved by other operators near Del Bonita with horizontal wells, producing at IP rates of 300 barrels per day. We believe that there is potential for continued success in this area.
We have also identified a 15,000 acre Nisku play, located on the Sunburst Dome, near Shelby, Montana. This package also has a small producing oil pool that has waterflood potential. These lands are situated a short drive south of the DeeThree discovery, near Warner, Alberta. A major US operator has assembled a large land package and was recently drilling near Border Road, just south of Coutts, Alberta. Drilling costs for Nisku wells are $500,000 US. These properties are close to three-phase power lines and roads.
A local wildcatter was scheduled to drill 2 wells between Del Bonita and Coutts during Q1-Q2. We will be following this activity closely as it could bring additional interest to the area.
Sir John Templeton said that "Bull-markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria." We are now at the beginning of the next bull market for oil and gas.
Our core area is Southern Alberta, near Del Bonita and Northern Montana, near Shelby.
(March 20, 2015 - 7:00 PM EDT)
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