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

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

  PR Newswire

  CAMARILLO, California, March 14, 2014

CAMARILLO, California, March 14, 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 " Woodford  Sale "), 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
                                             December 31,                  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, net          $    4,613      $   4,212  $   11,371   $   16,273
    Gathering income               -            356         331        1,420
    Gain on sale of
    assets                     (119)              -       9,499            -
    Management fees and
    other income                 163            898       1,124        1,633
                               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
    joint ventures             7,439          (101)       7,533          172
    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 loss    $ (11,016)      $ (4,538)  $ (19,710)   $ (14,948)

    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
http://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

        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
    (a) misleading as an indication of value.

        Discounted and undiscounted net present value of future net revenues
    (b) attributable to reserves do not represent fair market value.

        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
    (c) proved plus probable plus possible reserves.

        This news release contains short-term production rates. Readers are
        cautioned that such production rates are not necessarily indicative of
    (d) 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 http://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. 

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

Website: http://www.bnkpetroleum.com
 
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