BNK Petroleum slumps on well testing delays in Poland

lunes 31 de octubre de 2011 15:59 CET
 

Oct 31 (Reuters) - Shares of BNK Petroleum fell 31 percent to more than a year low, after the oil and gas explorer said shale results in Poland were inconclusive and delayed its testing of another zone in the country.

The company, which has assets in the United States, Poland, Spain and Germany, said that due to cold weather concerns the stimulation and testing of the Lebork S-1 well in the Cambrian and Ordovician shale intervals have been rescheduled until spring 2012.

It also delayed test fracking in the Wytowno well and Starogard well in Poland, BNK said in a statement on Sunday.

Shale and other forms of "tight" or hard to extract gas are extracted by a process known as hydraulic fracturing, or fracking.

This involves shooting a mixture of water, sand and chemicals such as hydrochloric acid and kerosene into a well to break up or fracture the rock and release the natural gas contained within.

The company, through Saponis Investments got three concessions in Poland in June 2009.

In October 2009, BNK farmed out its 80 percent interest in the concessions to RAG and Sorgenia. BNK will eventually hold just over a fifth of the concessions.

The concessions requires the drilling and testing of a second exploratory well on each concession by June 2014.

Shares of the company were down 25 percent at C$2.08 in morning trading on Monday on the Toronto Stock Exchange. Earlier in the session, the stock touched a low of C$1.90 and was the biggest percentage loser on the exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Maju Samuel)