Oil discovery in neglected area

Canadian minnow BNP Resources is claiming a “significant” light oil discovery in southern Alberta near the Montana border.

Chief Executive Officer Greg Bilcox said the find has yielded lower rates than other recent discoveries, but offers the prospect of steady, long-term output.

He said BNP believes this strike is “analogous” to a nearby pool that has produced more than 10 million barrels. A reserve estimate is anticipated later in December.

BNP is now evaluating the reserve potential in the Jensen area, which has not seen much oil and gas exploration for several decades.

Steve Hager, an analyst with Canadian Discovery, said the discovery is likely to generate strong interest “because this is oil time.” BNP was formed in 2006 by Bilcox and several former executives of Canadian Natural Resources.

—Gary Park