BNK Petroleum announced that it has filed the paperwork necessary to relinquish the Slupsk concession in the Baltic Basin of Poland and intends to shutdown all operations in Poland.
The Company’s efforts to find a joint venture partner for the Slupsk concession were extensive but unsuccessful, and the relinquishment of the concession and shut down of the Company’s remaining operations in Poland is consistent with the Company’s other cost reduction measures. The discontinuation of the Company’s operations in Poland, which cost about US$1.7 million last year, is expected to result in significant savings after accounting for shut-down costs.
Wolf Regener, President and Chief Executive Officer, commented “In this difficult oil and gas price environment, the closing of our Polish operations considerably adds to our cost reduction efforts. We will continue to focus on our Tishomingo Field, Oklahoma asset, which we believe has great potential and where our existing hedging provides significant additional operating cash flow through 2018 when oil prices are low. We also will continue our efforts to identify new opportunities in the U.S. and internationally.”
The Company plans to release its fourth quarter and full-year 2015 financial and operational results as well as the annual Reserve Report on Thursday, March 10, 2016 after market close.