BNK Petroleum Inc. Provides Corporate Update

Camarillo, California (ots/PRNewswire) -

TSX ticker symbol; BKX

BNK Petroleum Inc. (the "Company") provides the following update
on its operations in Poland and Oklahoma.

Oklahoma

The exploration horizontal Barnes 6-2H well operated by the
Company's US subsidiary BNK Petroleum, (US) Inc. (BNKUS) in its
Tishomingo field in Oklahoma, is still being tested with very
encouraging results. The 21 day stabilized pumping production rate
from the Lower Caney and Upper Sycamore (Mississippian Lime
equivalent) formations was 180 barrels of oil equivalent ("BOE") per
day with 70 percent of the production being oil. As stated in
previous press releases, the horizontal section was completed in both
the Sycamore and lower members of the Caney formation. The testing
results of the individual zones is designed to help optimize
placement of laterals in future wells.

To determine which interval is producing the majority of the oil,
packers were set in selected sections of the lateral to isolate the
various horizons and conduct individual tests. The testing continues,
as the individual tests are producing at higher flush rates than
expected. For instance the Sycamore interval alone tested 140 barrels
of fluid a day with 70% being oil and the balance being frac fluid
that is still being recovered. The tests in the select Caney
intervals are currently inconclusive because they are flowing clean
oil at rates of 200 barrels of oil per day ("BOPD").

This is providing good evidence that higher proppant
concentrations and potentially more frac stages will further increase
the productivity of these zones in future wells. Based on testing
results to date, it is anticipated that future wells will include
optimized frac stage spacing, much higher proppant concentrations,
analogous to other successful shale oil projects, and 20% longer
lateral lengths than this well while targeting the most productive
interval. These optimizations are expected to further improve on the
anticipated production rates and potential overall reserve recoveries
in future wells targeting these zones.

BNKUS's internally generated models show that a Sycamore/Caney
well with a theoretical initial production rate of 450 BOPD would be
expected to produce over 650,000 bbls of oil and yield a rate of
return greater than 150 percent (based on 3 years of future strip
pricing followed by Sproule's forward curve pricing). In addition,
this modeling also estimates that an initial production rate of only
150 BOPD, recovering 180,000 bbls of oil, would provide a 10% rate of
return. These models are based on the results to date of testing the
Barnes 6-2H well and the Nickel Hill 1-26 well and also incorporate
the anticipated effect of the potential future optimizations referred
to above. Since these zones are present over BNKUS's entire acreage
position with average to above average calculated net pays (from
publically available data), based on this modeling, Sycamore/Caney
well development, if successful, would provide significant reserve
additions.

Provided required capital is available, BNKUS also plans to drill
Woodford shale wells in 2013 that will target oily areas of the field
that have a high oil to gas ratio. Internal modeling by BNKUS shows
that these oily areas should generate a 50% rate of return based on
the same pricing assumptions as utilized above. BNKUS's partner and
offset operator, XTO, appears to be focusing its Woodford activities
in similar areas and has recently applied for a 55 acre spacing (11
wells per section) in a section where BNKUS has a non-operated
interest. It should be noted that BNKUS's reserve report assumes a
160 acre spacing scenario (4 wells per section) for its current third
party reserve estimate.

Corporate

The Company is pursuing a new debt facility that, if obtained,
would replace its existing senior debt facility with an increased
borrowing base that would enable the Company to accelerate its
Tishomingo field development as described above, as well as provide
some general working capital. There can be no assurance that such a
facility will be obtained.

Poland

The Company has received gas in place estimates from third party
contractors for its Gapowo B-1 well of up to 135 billion cubic feet
("BCF") per section. The Company's primary target interval, within
the lower Silurian and Ordovician (110m gross) has gas in place
estimates up to 86 BCF per section. The Gapowo B-1 well data has
validated the Company's geologic model of increasing thickness and
organic content over the Lower Silurian/Ordovician target interval as
it moves into a more distal basinal setting. The Company hopes to
achieve economic flow rates by drilling a lateral out of this
wellbore due to the occurrence of very strong gas shows while
drilling, good porosity, higher total organic content, over pressured
shales, good permeability and gas in place estimates.

The Company is still awaiting the concession modification approval
which is required for the re-entry of the Gapowo B-1 well to drill a
horizontal leg to test these highly promising zones. The Company's
application is progressing, and although it has not been provided a
timeframe the Company expects to receive approval within a few
months. In addition, discussions are continuing with multiple parties
regarding farming into the Company's wholly owned concessions.

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,
Spain and Germany. Additionally the Company is utilizing its
technical and operational expertise to identify and acquire
additional unconventional projects outside of North America. 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 information regarding the
Company's current plans and expectations in regard to the Barnes 6-2H
well and the Gapowo B-1 well and its interpretation of results,
expected production and rates of return, future well development and
its effects on reserves, a new credit facility, gas in place
estimates and a concession modification approval for the Gapowo B-1
well. Forward-looking information is based on plans and estimates of
management and interpretations of exploration information by the
Company's exploration team at the date the information is provided
and is subject to several factors and assumptions of management,
including that the indications of early results are reasonably
accurate predictors of the prospectiveness of the shale intervals,
that required regulatory approvals and financing will be available
when required and on terms that are acceptable to the Company, 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 and the assumptions set out above under the heading
"Oklahoma", that no unforeseen delays, unexpected geological or other
effects, equipment failures, permitting delays or, labor or contract
disputes are encountered, that the concession modification approval
for the Gapowo B-1 well will be obtained, 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, farm-ins or
other participation arrangements to maintain its projects, and that
global economic conditions will not deteriorate in a manner that has
an adverse impact on the Company's business, its ability to advance
its business strategy and the industry as a whole. 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. Factors that could cause the forward-looking information
in this news release to change or to be inaccurate include, but are
not limited to, the risk that any of the assumptions on which such
forward looking information is based vary or prove to be invalid,
including that the Company or its subsidiaries is not able for any
reason to obtain and provide the information necessary to secure
required approvals, that the proposed new credit facility or other
financing required to fund the Company's plans will not be obtained,
that unexpected geological results are encountered in Oklahoma or in
Poland, 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 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, any of which could result in delays, cessation in planned
work or loss of one or more concessions and have an adverse effect on
the Company and its financial condition. These risks as well as the
other risks and uncertainties applicable to exploration activities
and the Company's business as set forth in the Company's management
discussion and analysis and its annual information form both of which
are available for viewing under the Company's profile at
http://www.sedar.com. The Company undertakes no obligation to update
these forward-looking statements, other than as required by
applicable law.

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. "Mcf" means thousand
cubic feet and "bbl" means barrel.

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

(BKX.)

ots Originaltext: BNK Petroleum Inc.
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