BNK Petroleum Inc. Announces 4th Quarter and Annual 2013 results

       BNK Petroleum Inc. Announces 4th Quarter and Annual 2013 results

PR Newswire

CAMARILLO, CA, March 13, 2014

CAMARILLO, CA, March 13, 2014 /PRNewswire/ - All amounts are in U.S. Dollars
unless otherwise indicated:

                      Fourth Quarter                      Year Ended
               2013      2012        %          2013       2012       %
                                                                  
Earnings                                                             
(Loss):                                                                  
$ Thousands   $(11,016)  $(4,538)      -     $(19,710)   $(14,948)    -
$ per common                                                         
share           $(0.08)    $(0.03)        -       $(0.14)      $(0.10)      -
assuming                                                             
dilution                                                                 
                                                                  
Capital                                                              
Expenditures    $36,502     $4,945       638%      $81,772      $40,537    102%
                                                                  
Average                                                              
Production
(Boepd)           877       1,681       (48%)        776         1,581    (51%)
Gross                                                                
Revenue          5,678      5,184       10%       13,995      20,028     (30%)
Average                                                              
Product
Price per                                                                    
Barrel          $70.39      $33.52       110%       $49.39      $34.61      43%
Average                                                              
Netback per
Barrel          $50.65      $17.83       184%       $30.81      $17.75      74%
                                                                  
                                                                   
                                    12/31/2013   12/31/2012                
                                                                  
Cash, Cash                                                           
Equivalents
and
Marketable
Securities                           $42,215       $2,836                  
Working                                                              
Capital                              $18,854        $472                   

BNK's President and Chief Executive Officer, Wolf Regener commented:

"I feel we have made  excellent progress this last year  on both our U.S.  and 
European projects. In  our 2013  Tishomingo Field,  Caney formation  drilling 
program, our efforts were focused on reducing drilling time and cost,  testing 
the optimal lateral placement within the formation and optimizing the fracture
stimulations resulting in increasing the  oil rate of each consecutive  well. 
These goals were achieved. The last  two wells that we drilled and  completed 
in 2013, the Barnes 7-2H and the Wiggins 12-8H, have been our best  performing 
wells to date, demonstrating lower decline rates along with higher percentages
of oil in the production  mix. The Barnes 7-2H well,  which still has 15%  of 
the lateral left to fracture stimulate,  had a 60 day initial production  rate 
of 360 barrels of oil  per day (bopd) (469 barrels  of oil equivalent per  day 
(boepd)) and the Wiggins 12-8H well, where only approximately half the  length 
of the lateral was effectively stimulated was 273 bopd (402 boepd). These two
wells were the first to be drilled in the lower Caney interval rather than the
Transition zone which was  targeted in the first  three wells. The  Company's 
fourth quarter  average production  was  877 boepd  and our  December  average 
production was approximately 1,050 boepd.

"The 2013  year end  reserves report  confirmed the  Company's belief  in  the 
potential for the  Caney as  the Company's  proved and  probable ("2P")  gross 
reserves were estimated at approximately  15.5 million boe, while the  proved, 
probable and possible  ("3P") gross reserves  were estimated at  approximately 
40.9 million boe.  The net present  value of Future  Net Revenue before  tax, 
discounted at 10% was $286  million for the 2P  reserves and $847 million  for 
the 3P reserves.

"We look forward to starting our  2014 drilling program in the second  quarter 
after we  obtain the  final data  from  the Barnes  7-2 whole  core  analysis. 
Fracture stimulation operations are expected to begin at the end of this month
on the  first of  the two  lateral Caney  wellbores that  were not  yet  fully 
fracture stimulated (the remaining 15% of  the Barnes 7-2H well and the  Leila 
31-2H  well).  In  addition,  work   on  the  locations  and  surface   casing 
installation for  the  next two  Caney  wells  has already  commenced  and  is 
expected to be finalized in the coming weeks.

"In less than 8 months after selling substantially all of our producing assets
we were able to replace all of our revenue as our fourth quarter 2013 revenues
exceeded 2012 fourth  quarter revenues by  over $400,000. Our  cash flow  from 
operations for the fourth quarter 2013 was $2.3 million, which is $1.5 million
more than our 2012 fourth quarter operating cash flow. In addition, our Caney
netbacks for  the fourth  quarter  2013 averaged  $50.65  per barrel,  a  184% 
increase over the netbacks from the Woodford production in the fourth  quarter 
of last year, which averaged $17.83 per barrel.

"In Poland, the Company  successfully drilled, cased  and cemented the  Gapowo 
B-1 well in its  Bytow concession. We  are encouraged by  the high gas  shows 
encountered in  the 5,900  feet of  lateral and  we look  forward to  fracture 
stimulating the  first thirty  percent of  the available  length. After  this 
portion of the well  has been tested  we will design  the stimulation for  the 
rest of the lateral, incorporating what we learn from the first stimulation.

"The fracture stimulation design for the first portion of the Gapowo B-1  well 
has been finalized,  subcontractors have  been selected and  location work  is 
underway. We expect to commence fracture stimulation of this well as soon  as 
the location work is complete.

"In 2013, Saponis Investments Sp. z o.o ("Saponis") decided to relinquish  the 
Slawno and Starogard concessions, while  retaining the Slupsk concession.  In 
December 2013, the Company  increased its ownership in  Saponis to 57.04%,  up 
from 26.7%.  This  triggered  an  impairment test  of  the  Company's  Saponis 
interest under IFRS rules and the  resulting impairment plus the writedown  of 
the two concessions contributed to the  Company recording a $7.5 million  loss 
from equity  investments.  However,  the Company  believes  its  interest  in 
Saponis is more valuable now than prior  to these events due to its  increased 
interest in the more prospective Slupsk concession.

"The Company incurred  an $11.0 million  loss in the  fourth quarter of  2013, 
which includes the  nonrecurring $7.5 million  Saponis equity investment  loss 
and a $1.7 million write-off of the Darlowo lease in Poland, versus a loss  of 
$4.5 million in the fourth quarter of 2012.

"For the 2013 year the Company incurred a loss of $19.7 million versus a  loss 
of $14.9 million in 2012. Oil and gas revenues declined $4.9 million, or  30%, 
due to a decrease in average production per day due to the sale by the Company
in April 2013 of all of its rights in the Woodford and other formations in the
Tishomingo Field (the  "WoodfordSale"), which was  offset by production  from 
our subsequently drilled Caney  wells and an increase  in average pricing  per 
barrel.

"The Company recorded a gain of $9.5 million on the Woodford Sale, and used  a 
portion of the proceeds to  pay down its debt  from $41 million to  $100,000. 
Offsetting this gain was $3.5 million related to the amortization of  deferred 
financing costs, a  pre-payment penalty  of $2.5  million and  a $2.5  million 
payment to settle all of our financial commodity contracts."

FOURTH QUARTER HIGHLIGHTS:

  *Drilled and fracture stimulated the Barnes 7-2H and Wiggins 12-8H wells in
    the Caney formation in the Tishomingo Field
  *Received required EIA and concession modification to drill Gapowo B-1 well
    lateral in Poland
  *In January 2014, completed the drilling and ran casing on the Gapowo B-1
    well, which is expected to be fracture stimulated in the second quarter of
    2014
  *Oil and gas revenues were $4.6 million, which exceeded the prior year
    quarter for the first time since the Woodford Sale
  *Cash flow from operating activities was $2.3 million compared to prior
    year operating cash flows of $0.8 million
  *Netbacks were $50.65 per barrel compared to $17.83 in the prior year
    fourth quarter
  *Production continued increasing, post Woodford Sale, and averaged 877
    BOEPD in the quarter
  *G&A decreased by $1.0 million due to cost cutting efforts including
    reductions in staff and lower costs in Europe
  *Loss of $11.0 million in the fourth quarter of 2013 versus loss of $4.5
    million in the third quarter of 2012 due to a loss from investments in
    joint ventures of $7.4 million in 2013
  *At quarter end, cash and marketable securities totaled $42.2 million and
    working capital was $18.9 million

Fourth Quarter 2013 to Fourth Quarter 2012

Oil and gas revenues net of royalties totaled $4,613,000 in the quarter versus
$4,212,000 in the fourth quarter of 2012. Oil revenues were $4,716,000 in  the 
quarter versus $1,822,000 in the fourth  quarter of 2012, an increase of  159% 
as production increased 118% to an average  of 533 barrels per day due to  the 
production mix from the Caney wells while average oil prices increased 19%  or 
$15.20 a barrel. Natural gas revenues  declined $1,008,000 or 79% as  natural 
gas production  decreased  to  690 mcfd  due  to  the Woodford  Sale  and  the 
production mix of  the Caney wells  while average natural  gas prices per  mcf 
increased 3%. NGL revenue declined $1,391,000  or 67% to $690,000 as  average 
production decreased 73% to 197boepd as a result of the Woodford Sale and the
production mix from the Caney wells while average NGL prices increased 22%  to 
$38.03 a barrel.

Other income decreased  $735,000 to  $163,000 as fourth  quarter 2012  results 
included gains  from eliminating  asset retirement  obligations for  wells  no 
longer owned by the Company.

Exploration and evaluation expenses increased $859,000 between quarters due to
the 2013 write-off of the Darlowo well in Poland.

Production and operating  expenses declined $925,000  between quarters due  to 
the Woodford Sale.

Depletion and depreciation expense decreased $189,000 between quarters due  to 
decreased production and depletion  base and lower production  as a result  of 
the Woodford Sale.

General  and  administrative  expenses  decreased  $954,000  between  quarters 
primarily due to lower payroll and  related costs and lower professional  fees 
incurred in Europe relating  to legal, accounting,  and management fees  which 
were partially offset by higher director fees incurred in 2013.

Stock based compensation increased $524,000 between quarters due to a grant of
stock options in the fourth quarter of 2013.

Finance income decreased $344,000 due to realized gains on financial commodity
contracts in  2012.  Finance  expense  decreased  $774,000  primarily  due  to 
interest on loans and borrowings of $384,000 in 2012 and unrealized losses  on 
financial commodity contracts in 2012.

Capital expenditures of  $36,502,000 were  incurred in the  fourth quarter  of 
2013, almost all of which was spent in Oklahoma.

YEAR ENDED 2013 HIGHLIGHTS

  *Drilled and fracture stimulated the first five wells in the Caney
    formation in the Tishomingo field
  *Closed the Woodford Sale in April 2013 for $146.4 million
  *Paid down the Company's credit facility from $41 million to $100,000 in
    connection with the Woodford Sale
  *Settled all the financial derivative contracts in April 2013 in connection
    with the Woodford Sale and incurred a realized loss of $2.5 million
  *Capital expenditures increased $40.7 million or 99% to $81.8 million
    primarily due to the 2013 drilling program in Oklahoma which totaled $78.1
    million for the year ended 2013. The 2012 capital expenditures amount
    included $28 million of capital expenditures for exploration and
    evaluation assets, mainly in Poland
  *G&A expenses decreased by $2.9 million primarily due to staff reductions
    and lower costs in Europe
  *Average production decreased 51% between comparative years due to the
    Woodford Sale, which was partially offset by production from the new Caney
    wells
  *A net loss of $19.7 million was incurred in the year ended 2013 versus a
    loss of $14.9 million in in 2012 partially due to a loss from investments
    in joint ventures of $7.5 million in 2013 and the $1.7 million write-off
    of the Polish Darlowo concession

Year Ended 2013 to Year Ended 2012

Oil and natural gas  revenues net of royalties  declined $4,902,000 or 30%  to 
$11,371,000. Oil revenues before  royalties increased $624,000 to  $9,149,000 
due to a 2% increase  in production due to the  production mix from the  Caney 
wells and a 6% increase in  prices between years. Natural gas revenues  before 
royalties declined  $2,086,000  or  54%  due  to  a  62%  decline  in  average 
production due to the Woodford Sale  and production mix from the Caney  wells, 
partially offset  by a  23% increase  in  natural gas  prices per  mcf.  NGL 
revenue before royalties declined $4,574,000 or 60% to $3,054,000 due to a 60%
decline in  average  production per  day  due to  the  Woodford Sale  and  the 
production mix from the Caney wells.

Other income decreased  due to  2012 gains from  eliminating asset  retirement 
obligations for wells no longer owned by the Company.

Exploration and evaluation expenses increased $606,000 due to the write-off of
the Darlowo concession in Poland.

Production and  operating  expenses decreased  56%  to $2,641,000  as  average 
production decreased 51% due to the Woodford Sale.

Depletion and  depreciation  expense  decreased $2,288,000  primarily  due  to 
decreased production and depletion  base and lower production  as a result  of 
the Woodford Sale.

General and  administrative expenses  decreased  $2,935,000 primarily  due  to 
lower payroll and related  costs, lower professional  fees incurred in  Europe 
relating  to  legal,  accounting,  management  fees  and  lower  travel  costs 
partially offset by higher director fees in 2013.

Finance Income  decreased $1.5  million  due to  realized gains  on  financial 
commodity contracts and  unrealized gains  on warrant  revaluations in  2012. 
Finance expense increased $7.6 million primarily due to a $7.5 million  charge 
related to interest on  loans and borrowings which  included $3.5 million  for 
the amortization of deferred financings costs and $2.5 million of  pre-payment 
penalties related to the loan paydown along with a realized loss on  financial 
commodity contracts of  $2.5 million as  these contracts were  all settled  in 
April 2013.

At December 31, 2013, cash and marketable securities increased by $39,379,000
from December 31, 2012, primarily due to the Woodford Sale offset by the 2013
capital expenditures.

                           BNK PETROLEUM INC.
        CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
      (Unaudited, Expressed in Thousands of United States Dollars)
                                                      
                                        December 31,   December 31,
                                            2013           2012
Current assets                                                    
 Cash and cash equivalents             $       17,159  $        2,836
 Investments in marketable securities         25,056              -
 Trade and other receivables                   7,268         11,363
 Deposits and prepaid expenses                 1,243          2,334
 Fair value of commodity contracts                 -            779
                                              50,726         17,312
                                                                 
Non-current assets                                                
 Long-term receivables                           433          1,297
 Investments in joint ventures                 2,787         10,114
 Property, plant and equipment                94,663        156,549
 Exploration and evaluation assets            36,194         33,590
                                             134,077        201,550
                                                                 
Total assets                            $      184,803  $      218,862
                                                                 
Current liabilities                                               
 Trade and other payables              $       31,872  $       16,840
 Loans and borrowings                              -         31,797
                                              31,872         48,637
                                                                 
Non-current liabilities                                           
 Loans and borrowings                            100              -
 Fair value of commodity contracts                 -             75
 Asset retirement obligations                  1,192          1,312
 Warrants                                          -              3
                                               1,292          1,390
                                                                 
Equity                                                            
 Share capital                               247,782        247,326
 Contributed surplus                          18,721         16,663
 Deficit                                   (114,864)       (95,154)
Total equity                                  151,639        168,835
                                                                 
Total equity and liabilities            $      184,803  $      218,862


                             BNK PETROLEUM, INC.
   CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited, expressed in Thousands of United States dollars, except per share
                                   amounts)
                                                                    
                              Three months ended      Twelve months ended
                                   December 31               December 31
                               2013       2012        2013        2012
Revenue:                                                             
Oil and natural gas revenue, $    4,613  $   4,212   $   11,371  $   16,273
net
Gathering income                     -        356         331       1,420
Gain on sale of assets           (119)          -       9,499           -
Management fees and other          163        898       1,124       1,633
income
                                4,657      5,466      22,325      19,236
Expenses:                                                            
Exploration and evaluation       1,937      1,078       1,994       1,388
Production and operating           528      1,453       2,641       6,002
Depletion and depreciation       1,729      1,918       4,786       7,074
General and administrative       3,414      4,368      13,344      16,279
Share based compensation           716        192       1,305         877
Loss from investments in         7,439      (101)       7,533         172
joint ventures
Restructuring expenses               -        756         595       1,771
                               15,763      9,664      32,198      33,563
                                                                    
                                                                    
Finance income                      97        441         166       1,686
Finance expense                    (7)      (781)    (10,003)     (2,397)
                                                                    
Net loss and comprehensive   $ (11,016)  $ (4,538)  $ (19,710)  $ (14,948)
loss
                                                                    
Net loss per share                                                   
          Basic and Diluted $   (0.08)  $  (0.03)   $   (0.14)  $   (0.10)

                             BNK PETROLEUM, INC.
                             FOURTH QUARTER 2013
(Unaudited, expressed in Thousands of United States dollars, except as noted)
                                                                             
                                      4th Quarter                      
                                     2013     2012      2013      2012
Oil revenue before royalties       $    4,716    1,822     9,149     8,525
Gas revenue before royalties             273    1,281     1,787     3,873
NGL revenue before royalties             690    2,081     3,054     7,628
Oil and Gas revenue                    5,679    5,184    13,990    20,026
                                                                  
Cash flow used by operating                                      
activities                               2,286       784   (6,656)   (10,153)
Additions to property, plant &                                   
equipment                             (34,504)   (3,982)  (78,386)   (12,915)
Additions to Exploration and                                     
Evaluation
Assets                                 (1,998)     (963)   (3,386)   (27,622)
                                                                    
                                                                  
Statistics:                                                        
                                      4th Quarter                      
                                       2013     2012      2013      2012
Average natural gas production                                   
(mcf/d)                                    879     4,240     1,504      3,981
Average NGL production (Boepd)          197      729       264       660
Average Oil production (Bopd)            533      245       261       257
Average production (Boepd)              877    1,681       776     1,581
Average natural gas price ($/mcf)     $ 3.38    $3.28     $3.26     $2.66
Average NGL price ($/bbl)            $ 38.03   $31.02    $31.69    $31.58
Average oil price ($/bbl)            $ 96.13   $80.93    $95.93    $90.59
                                                                  
Average price per barrel             $ 70.39   $33.52    $49.39    $34.61
Royalties per barrel                   13.20     6.29      9.26      6.49
Operating expenses per barrel           6.54     9.40      9.32     10.37
                                                                    
Netback per barrel                   $ 50.65   $17.83    $30.81    $17.75

The information  outlined  above is  extracted  from  and should  be  read  in 
conjunction with the Company's audited financial statements for the year ended
December 31,  2013  and  the  related  management's  discussion  and  analysis 
thereof, copies  of  which  are  available  under  the  Company's  profile  at 
www.sedar.com.

NON-GAAP MEASURES

Netback  per  barrel,   net  operating  income   and  funds  from   operations 
(collectively, the "Company's Non-GAAP Measures") are not measures  recognized 
under Canadian generally  accepted accounting principles  ("GAAP") and do  not 
have any standardized meanings prescribed  by GAAP. Management of the  Company 
believes that such measures are relevant for evaluating returns on each of the
Company's projects as well as the  performance of the enterprise as a  whole. 
The Company's  Non-GAAP  Measures  may differ  from  similar  computations  as 
reported  by  other  similar  organizations  and,  accordingly,  may  not   be 
comparable to similar  non-GAAP measures as  reported by such  organizations. 
The Company's Non-GAAP Measures should not be construed as alternatives to net
income, cash  flows  related  to  operating  activities,  or  other  financial 
measures determined in accordance with GAAP, as an indicator of the  Company's 
performance.

Netback per barrel and its components are calculated by dividing revenue  less 
royalties and  operating expenses  by the  Company's sales  volume during  the 
period. Netback per barrel is a non-IFRS  measure but it is commonly used  by 
oil and  gas companies  to illustrate  the unit  contribution of  each  barrel 
produced. This is a useful measure  for investors to compare the  performance 
of one  entity with  another.  However, non-IFRS  measures  do not  have  any 
standardized meaning prescribed by IFRS and therefore may not be comparable to
similar measures used by other companies.

Net operating income is similarly  a non-GAAP measure that represents  revenue 
net of  royalties  and  operating  expenses. The  Company  believes  that  net 
operating income  is  a  useful  supplemental  measure  to  analyze  operating 
performance and  provides  an  indication  of the  results  generated  by  the 
Company's principal business  activities prior to  the consideration of  other 
income and expenses.

Funds from operations is a non-GAAP  measure that represents cash provided  by 
(used in) operating  activities, as  per the consolidated  statements of  cash 
flows, before changes in non-cash working capital. The Company considers  this 
a key measure as it demonstrates  its ability to generate the funds  necessary 
for future growth after taking into account the short-term fluctuations in the
collection of accounts receivable and the payment for accounts payable.

Cautionary Statements

(a) The Company's natural gas production is reported in thousands of cubic
    feet ("Mcfs"). The Company also uses references to barrels ("Bbls") and
    barrels of oil equivalent ("Boes") to reflect natural gas liquids and oil
    production and sales. Boes may be misleading, particularly if used in
    isolation. A Boe conversion ratio of 6 Mcf:1 Boe is based on an energy
    equivalency conversion method primarily applicable at the burner tip and
    does not represent a value equivalency at the wellhead. Given that the
    value ratio based on the current price of crude oil as compared to natural
    gas is significantly different from the energy equivalency of 6:1,
    utilizing a conversion on a 6:1 basis may be misleading as an indication
    of value.
   
(b) Discounted and undiscounted net present value of future net revenues
    attributable to reserves do not represent fair market value.
   
(c) 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 proved plus
    probable plus possible reserves.
   
(d) This news release contains short-term production rates. Readers are
    cautioned that such production rates are not necessarily indicative of
    long-term performance or of ultimate recovery.

Readers are referred to the full  description of the results of the  Company's 
December 31,  2013  independent reserves  evaluation  and other  oil  and  gas 
information contained in its Amended  and Restated Form 51-101F1 Statement  of 
Reserves Data and Other  Oil and Gas Information  for the year ended  December 
31, 2013, which the Company filed on SEDAR on March10,2014.

Caution Regarding Forward-Looking Information

This  release  contains  forward-looking  information  including   information 
regarding estimates of reserves  and future net  revenue, the proposed  timing 
and expected results of exploratory and development work including  production 
from the Lower Caney and upper  Sycamore formations on the Company's  Oklahoma 
acreage,  the  effect  of  design  and  performance  improvements  on   future 
productivity,  the  anticipated  timing  of  commencement  and  completion  of 
drilling and  fracture-stimulations in  connection  with the  Company's  Caney 
drilling  program,  the  advancement  of  the  Company's  European   projects, 
including permit and concession applications and approvals, drilling plans and
fracture stimulation operations underway on the Company's Gapowo B-1 shale gas
well in  Poland,  planned capital  expenditure  programs and  cost  estimates, 
planned use and sufficiency of cash and marketable securities on hand and  the 
Company's strategy  and objectives.  The use  of any  of the  words  "target", 
"plans",  "anticipate",  "continue",  "estimate",  "expect",  "may",   "will", 
"project",  "should",  "believe"  and  similar  expressions  are  intended  to 
identify forward-looking statements.

Such forward-looking  information is  based on  management's expectations  and 
assumptions, including that the Company's  geologic models will be  validated, 
that indications of early  results are reasonably  accurate predictors of  the 
prospectiveness of the shale intervals, that previous exploration results  are 
indicative of future results and success, that expected production from future
wells can be  achieved as modeled,  declines will match  the modeling,  future 
well production rates  will be  improved over  existing wells,  that rates  of 
return as  modeled  can  be  achieved, that  recoveries  are  consistent  with 
management's expectations,  that additional  wells  are actually  drilled  and 
completed, that design  and performance improvements  will reduce  development 
time and expense and improve productivity,  that discoveries will prove to  be 
economic, that anticipated results and estimated costs will be consistent with
managements' expectations, that  all required  permits and  approvals and  the 
necessary labor  and equipment  will be  obtained, provided  or available,  as 
applicable, on terms that are acceptable  to the Company, when required,  that 
no unforeseen  delays,  unexpected  geological  or  other  effects,  equipment 
failures, permitting delays  or labor  or contract  disputes are  encountered, 
that the  development plans  of  the Company  and  its co-venturers  will  not 
change, that the demand for  oil and gas will  be sustained, that the  Company 
will continue  to be  able to  access sufficient  capital through  financings, 
credit facilities, farm-ins  or other participation  arrangements to  maintain 
its projects, that  the Company  will not  be adversely  affected by  changing 
government policies and  regulations, social instability  or other  political, 
economic or diplomatic developments in the countries in which it operates  and 
that global economic conditions will not  deteriorate in a manner that has  an 
adverse impact  on the  Company's  business and  its  ability to  advance  its 
business strategy.

Forward looking information involves significant  known and unknown risks  and 
uncertainties, which  could cause  actual results  to differ  materially  from 
those anticipated. These  risks include, but  are not limited  to: any of  the 
assumptions on which such forward looking  information is based vary or  prove 
to be invalid, including that anticipated results and estimated costs will not
be consistent with  managements' expectations, the  risks associated with  the 
oil and gas industry (e.g.  operational risks in development, exploration  and 
production; delays  or  changes  in  plans with  respect  to  exploration  and 
development projects or capital expenditures;  the uncertainty of reserve  and 
resource estimates and projections relating to production, costs and expenses,
and health, safety and environmental risks),  the risk of commodity price  and 
foreign exchange rate  fluctuations, risks and  uncertainties associated  with 
securing the  necessary regulatory  approvals and  financing to  proceed  with 
continued development of the  Tishomingo Field and other  shale basins in  the 
United States and Europe, the Company or its subsidiaries is not able for  any 
reason to  obtain and  provide the  information necessary  to secure  required 
approvals or that  required regulatory approvals  are otherwise not  available 
when required,  that  unexpected  geological  results  are  encountered,  that 
completion techniques require further  optimization, that production rates  do 
not match the Company's assumptions, that very low or no production rates  are 
achieved, that  the  Company  is  unable  to  access  required  capital,  that 
occurrences such as those that are assumed  will not occur, do in fact  occur, 
and those  conditions  that are  assumed  will  continue or  improve,  do  not 
continue or  improve and  the other  risks identified  in the  Company's  most 
recent Annual  Information  Form under  the  "Risk Factors"  section  and  the 
Company's other public  disclosure, available under  the Company's profile  on 
SEDAR at www.sedar.com.

With respect to estimated reserves and  future net revenue, the evaluation  of 
the Company's reserves  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.

Although the Company has attempted to take into account important factors that
could cause actual costs or results  to differ materially, there may be  other 
factors that  cause actual  results not  to be  as anticipated,  estimated  or 
intended. There can  be no  assurance that such  statements will  prove to  be 
accurate as  actual results  and future  events could  differ materially  from 
those anticipated in such statements. The forward-looking information included
in this release  is expressly  qualified in  its entirety  by this  cautionary 
statement.  Accordingly,   readers  should   not  place   undue  reliance   on 
forward-looking information. The Company  undertakes no obligation to  update 
these forward-looking statements, other than as required by applicable law.

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 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.





SOURCE BNK Petroleum Inc.

Contact:

Wolf E. Regener, President and Chief Executive Officer +1 (805) 484-3613
Email:investorrelations@bnkpetroleum.com
Website:www.bnkpetroleum.com
 
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