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BNK Petroleum Inc. Provides Corporate Update

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.

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