BNK Petroleum Inc. Announces 2013 Year-end Reserves

             BNK Petroleum Inc. Announces 2013 Year-end Reserves

  PR Newswire

  CAMARILLO, California, March 4, 2014

CAMARILLO, California, March 4, 2014 /PRNewswire/ --

BNK Petroleum Inc. (the " Company " or " BNK ") (TSX: BKX) is providing the
results of its December 31, 2013 independent reserves evaluation.

The evaluation of the Company's reserves in the Caney / Upper Sycamore
formations of the Tishomingo Field in Oklahoma was conducted by Netherland,
Sewell and Associates, Inc. ("NSAI") in accordance with National Instrument
51-101 - Standards of Disclosure for Oil and Gas Activities .

2013 Gross Reserves Summary

  *Total Proved Reserves: 4 million Barrels of oil equivalents (BOEs)
  *Proved & Probable Reserves: 15.5 million BOEs
  *Proved, Probable and Possible Reserves: 40.9 million BOEs

Net Present Value of Future Net Revenue (before tax, discounted at 10%)

  *Total Proved Reserves: U.S.$71 million
  *Proved & Probable Reserves: U.S.$286 million
  *Proved, Probable and Possible Reserves: U.S.$847 million

These reserves estimates are attributed to the 6 wells already drilled and the
assumed drilling of 29 net additional wells for the Proved and Probable
reserves and 25 net wells for the Possible reserves at 160 acre spacing (4
wells per section) over the next 4 years. The reserves are allocated to
approximately 9,200 net acres in the Company's westerly acreage. This is
approximately 63% of the Company's 14,700 net acres in the Tishomingo Field.
Based on data from the Company's historical drilling in the deeper Woodford
formation correlated with a 3D seismic survey across its entire Tishomingo
acreage, the Company anticipates that future wells on its easterly acreage
will confirm reserves over its entire acreage. The Company also believes that
future well locations will ultimately be able to be further downspaced to
increase recoverable reserves.


                                     Summary of Oil & Gas Reserves
                                        Forecast Prices & Costs

                     Light & Medium Oil Natural Gas       Natural Gas
                                                          Liquids         MBOEs
                     BNK                BNK               BNK             BNK
                     Gross    Net       Gross    Net      Gross   Net     Gross    Net
    Reserve Category (Mbbl)   (Mbbl)    (MMcf)  (MMcf)    (Mbbl)  (Mbbl)  (Mbbl)   (Mbbl)
    Proved
         Developed
         Producing    414.3    324.7    666.7    527.0    154.5   122.1   679.9    534.6
         Developed
         Non-
           Producing  321.3    251.2    248.5    194.2    64.7    50.6    427.4    334.2
         Undeveloped  2,188.6  1,728.4  1,692.5  1,336.6  440.8   348.1   2,911.5  2,299.3
    Total Proved      2,924.2  2,304.3  2,607.7  2,057.8  660.0   520.8   4,018.8  3,168.1
    Probable          8,640.4  6,839.1  6,769.6  5,358.1  1,756.6 1.390.4 11,525.3 9,122.5
    Total Proved Plus
    Probable          11,564.6 9,143.5  9,377.3  7,415.9  2,416.6 1,911.2 15,544.1 12,290.6
    Possible          19,077.8 15,378.8 14,752.9 11,892.4 3,842.5 3,097.5 25,379.1 20,458.4
    Total Proved Plus
    Probable
    Plus Possible     30,642.5 24,522.3 24,130.2 19,308.3 6,259.1 5,008.7 40,932.2 32,749.0



                                 Net Present Value of Future Net Revenue
                                        Forecast Prices & Costs

                                Net Present Value of Future Net Revenue ($ millions)
                              Before Income Taxes                     After Income Taxes
    Reserv
    Category            0%      5%    10%    15%    20%       0%     5%    10%   15%   20%

    United States
    Proved
    Developed
    Producing          6.4    22.9   20.5   18.7   17.4     17.4   15.1   13.5  12.2  11.3
    Developed
    Non-Producing     22.3    17.8   14.9   13.0   11.7     14.7   11.6    9.7   8.5   7.6
    Undeveloped       86.4    54.3   35.5   23.8   16.0     57.0   35.8   23.4  15.6  10.5
    Total Proved     135.1    95.0   71.0   55.5   45.0     89.2   62.5   46.6  36.4  29.5
    Probable         486.6   312.3  215.5  156.5  118.1    321.1  203.2  142.4 103.6  78.2
    Total Proved
    Plus Probable    621.7   407.4  286.5  212.1  163.1    410.3  268.7  208.8 140.0 107.7
    Possible       1,297.5   816.0  561.4  410.6  313.8    856.4  538.6  370.6 271.1 207.2
    Total Proved
    Plus Probable
    Plus Possible  1,919.2 1,223.3  847.8  622.7  476.9  1,266.7  807.3  579.4 411.0 314.9


Readers are referred to the Company's Form 51-101F1 Statement of Reserves Data
and Other Oil and Gas Information for the year ended December 31, 2013, which
can be accessed electronically from the SEDAR website at http://www.sedar.com
, for additional information.

BOEs/boes may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. Possible reserves are those additional reserves
that are less certain to be recovered than probable reserves. There is a 10%
probability that the quantities actually recovered will equal or exceed the
sum of provided plus probable plus possible reserves. The present value of
estimated future net revenues referred to herein does not represent fair
market value.

About BNK Petroleum Inc.

BNK Petroleum Inc. is an international oil and gas exploration and production
company focused on finding and exploiting large, predominately unconventional
oil and gas resource plays. Through various affiliates and subsidiaries, the
Company owns and operates shale oil and gas properties and concessions in the
United States, Poland and Spain. Additionally the Company is utilizing its
technical and operational expertise to identify and acquire additional
unconventional projects. The Company's shares are traded on the Toronto Stock
Exchange under the stock symbol BKX.

Caution Regarding Forward-Looking Information

Certain statements contained in this news release constitute "forward-looking
information" as such term is used in applicable Canadian securities laws,
including statements regarding estimates of reserves and future pre-tax net
revenue, the productiveness of the Company's other Tishomingo Field acreage
and future downspacing of Caney / Upper Sycamore wells. Forward-looking
information is subject to a variety of risks and uncertainties and other
factors that could cause plans, estimates and actual results to vary
materially from those projected in such forward-looking information. Estimated
reserves and future pre-tax net revenue have been independently evaluated by
NSAI with an effective date of December 31, 2013. This evaluation is based on
a limited number of wells with limited production history and includes a
number of assumptions relating to factors such as availability of capital to
fund required infrastructure, commodity prices, production performance of the
wells drilled, successful drilling of infill wells, the assumed effects of
regulation by government agencies and future operating costs. All of these
estimates will vary from actual results. Estimates of the recoverable oil and
natural gas reserves attributable to any particular group of properties,
classifications of such reserves based on risk of recovery and estimates of
future net revenues expected therefrom, may vary. The Company's actual
production, revenues, taxes, development and operating expenditures with
respect to its reserves will vary from such estimates, and such variances
could be material. In addition to the foregoing, other significant factors or
uncertainties that may affect either the Company's reserves or the future net
revenue associated with such reserves include material changes to existing
taxation or royalty rates and/or regulations, and changes to environmental
laws and regulations. The Company's expectations regarding the productiveness
of the Company's other Tishomingo Field acreage and future downspacing of
Caney / Upper Sycamore wells is based on interpretations of geologic and other
information by the Company's exploration team at the date the information is
provided and is subject to several assumptions of management, including that
indications of early results are reasonably accurate predictors of the
prospectiveness of the shale intervals and that anticipated results will be
consistent with managements' expectations, and is subject to a variety of
risks, including that anticipated results will not be consistent with
managements' expectations and the Company's geological analyses proving to be
inaccurate.

Information on other important economic factors or significant uncertainties
that may affect components of the reserves data and the other forward looking
statements in this release are contained in the Company's Form 51-101F1
Statement of Reserves Data and Other Oil and Gas Information for the year
ended December 31, 2013, Management Discussion and Analysis and in the
Company's Annual Information Form under "Risk Factors", which are available
under the Company's profile at http://www.SEDAR.com . The present value of
estimated future net revenues referred to herein should not be construed as
the current market value of estimated crude oil and natural gas reserves
attributable to the Company's properties. The Company undertakes no obligation
to update forward-looking statements, other than as required by applicable
law.

For further information:

Wolf E. Regener +1(805)484-3613 Email: investorrelations@bnkpetroleum.com
Website: http://www.bnkpetroleum.com
 
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