BNK Petroleum Inc. work Tender Selects Drilling Contractor in Poland and Provides Corporate Update

Camarillo, California (ots/PRNewswire) - BNK Petroleum
Inc. (the "Company") provides the following corporate and operations
update:

Europe

In Poland, through Saponis Investments Sp. Z o.o. ("Saponis"),
the Company has completed the major tenders for the services to drill
the Wytowno S-1 and Lebork S-1 wells on the Slawno and Slupsk
concessions in Poland, including the award of the drilling rig
contract to NAFTA Pila. NAFTA Pila recently completed drilling the
Lebien LE1 well and is currently drilling the Legowo LE1 well, both
for Lane Energy/Conoco Phillips. These two wells are shale gas test
wells located on concessions directly offsetting the Company's
Saponis concessions. Surface agreements have been secured for both
the Wytowno S-1 and Lebork S-1 wells. Surface site construction is
underway and rig release and mobilization from the Legowo LE1 well
and site construction will determine the Saponis drilling schedule.
The Company owns 26.6% of Saponis and the rest of Saponis is owned by
Rohol-Aufsuchungs Aktiengesellschaft ("RAG"), Sorgenia E&P S.p.A.
("Sorgenia") and by LNG Energy through a subsidiary. The Company is
obliged to pay approximately 6.6% of the drilling costs of these
first two wells with the other 20% of the Company's interest being
paid by RAG and Sorgenia under the terms of the Company's farm-out to
RAG and Sorgenia. The Company holds 195,000 net acres in Poland
through Saponis and a further 880,000 adjacent net acres through
another European subsidiary.

The Company is also pleased to announce the appointment of Jack
Wroblewski as its Country Manager in Poland. Mr. Wroblewski brings
valuable Polish operational experience to the Company. He has held a
number of significant positions in the Polish oil and gas sector. His
past positions include General Director of another exploration and
production operator in Poland, General Director of the Polish
Organization of Oil Industry and Trade, and Deputy Director of the
Department of Geology and Director of the Bureau of Geological
Concessions for the Polish Ministry of Environment, Natural Resources
and Foresty. Mr. Wroblewski holds a Ph.D. in Earth Sciences and a
M.Sc. in engineering geology from the University of Warsaw. "We are
very pleased that he has joined our company and I feel that he is a
great addition to our team." said Wolf Regener, the Company's
President and CEO.

In Germany, the Company has undertaken additional geological work
to further high-grade its concessions and to gather additional data
from not only the primary shale targets but also from the secondary
shale targets on the concessions. The Company intends to begin the
German concession farm-down process during the second quarter 2011.

The Company has also agreed to acquire from an arm's length party
the minority interest it does not already own in an entity formed to
pursue other oil and gas concession applications within Europe.
Consideration for the acquisition includes re-imbursement of costs,
1,000,000 share purchase warrants, each excercisable subject to
vesting to acquire one additional share at a price of C$2.85 for a
period of three years, US$200,000 in cash and reimbursement of costs
which are not expected to exceed US$100,000. The cash and the
warrants will only become payable or exercisable, as applicable, in
tranches if, as and when additional concessions are acquired by the
Company.

The Company, through its European subsidiaries, continues to
pursue concession applications in various European countries with a
view to increasing the number of European basins in which it has
holdings. Progress of many of the concession applications is slowing
as a result of increased competition and awareness of shale gas
potential in Europe.

United States

As a result of the current weakness in natural gas and natural
gas liquids prices, the Company has adjusted its work program for its
Tishomingo Woodford shale field in Oklahoma. The Company had
previously planned a down-spacing pilot well test program which will
be deferred to conserve working capital, while fracture stimulations
on existing wells will continue but at a slower pace. A further 13
net stages have been fracture-stimulated since the Company's second
quarter MD&A update. Ten of the 13 net stages are still flowing back
fracture stimulation fluid and thus do not yet have stabilized rates.
Currently production is approximately 1,300 boepd.

BNK Petroleum (US) Inc. the Company's indirect wholly-owned
subsidiary which holds its US oil and gas interests in the United
States, including its producing Tishomingo field, has received a
commitment letter from a lender to provide $20 million in a new
reserve-based loan facility with a three-year term. The new facility
would substantially replace its existing credit facility that at
September 30, 2010 had an estimated outstanding balance of $23.3
million. The Company is also in discussions with other lenders to
provide additional financing on substantially identical terms that
would increase the total size of the new facility from $20 million to
$23.8 million. It is anticipated that the new facility will not
require monthly principal payments and accordingly is expected to
free up cash flow for other opportunities.

Future Financial Options

With the combination of increased production through additional
fracs and the refinancing of its existing credit facility, management
believes that cash on hand and cash flow from operations will be
sufficient to fund its planned exploration activities in the United
States and its required exploration activities in Poland and Germany.
The Company also believes that expanded exploration activities in
Poland and Germany beyond those now required and potential
exploration activities resulting from the granting of future
concessions will be financed through farm-out arrangements with other
companies that will finance the drilling programs on these projects,
and/or by the proceeds of additional equity or debt offerings.

While the Company continues to pursue its strategy of farming-out
exploration costs and risk on its European concessions, successful
well results from basin competitors and/or Company wells may
accelerate the Company's capital expenditure plans and commitments in
Europe and, accordingly, the Company intends to file a short form
base shelf prospectus in certain Canadian jurisdictions to facilitate
its ability to raise additional capital if required.

Subject to receipt of all necessary approvals the shelf
prospectus, when made effective, would provide for the potential
offering by the Company of common shares, debt securities, warrants
for the purchase of common shares or debt securities, subscription
receipts, or any combination thereof, in selected Canadian provinces
to raise an aggregate amount of up to C$200 million during the 25
months following final receipt.

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 planned drilling schedule and other exploration activities,
costs and acquisition and farm-out plans for its concessions in
Europe, its development activities on its Tishomingo field in
Oklahoma, its expectations regarding the terms and amount of the
proposed replacement credit facilities, its expectations regarding
additional capital requirements, its expectations regarding
availability of farm-outs and its ability to raise capital through
debt and equity issues to finance its future commitments and its
intention to file a short form base shelf prospectus for the
potential issue of a combination of debt and/or equity securities to
permit the Company to raise proceeds of up to C$200 million over the
25-month period following such prospectus becoming effective.
Forward-looking information is based on plans and estimates of
management at the date the information is provided and certain
factors and assumptions of management, including that the required
capital and approvals will be available when required to carry out
its planned exploration and development activities, that a final
agreement for a replacement credit facility or facilities will be
entered into on the terms and in the amounts anticipated, that the
Company will be able to obtain farm-out participants on acceptable
terms to pay a significant amount of the exploration activities on
its European concessions, that interest in shale gas potential will
continue, that exploration results will be positive, that the Company
will file and obtain a final receipt for its base shelf prospectus in
the applicable Canadian jurisdictions, and that it will be able to
raise funds through issuances of securities under the shelf
prospectus when required. 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 risks
related to international operations and doing business in foreign
jurisdictions, including governmental policies regarding awarding of
concessions and permits, risks associated with the oil and gas
industry and exploratory and development activities generally (e.g.,
operational risks in development, exploration and production, delays
or changes in plans with respect to exploration or development
projects or capital expenditures, risks associated with equipment
procurement and equipment failure), the risk of commodity price and
foreign exchange rate fluctuations, risks related to future royalty
rate changes, and risks and uncertainties associated with securing
and maintaining necessary regulatory approvals, including regulatory
approvals required in respect of the short form base shelf
prospectus, risks related to the global economy and uncertainty and
volatility of the credit and capital markets, counterparty risk
related to the stability and viability of the Company's lenders and
farm-out participants, risks inherent in estimates of reserves and
the accuracy of assumptions underlying such estimates and other risks
and uncertainties disclosed in the Company's annual and quarterly
management's discussion and analysis, NI 51-101 reports, and most
recent annual information form 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.

"Boe"s may be misleading, particularly if used in isolation. A
Boe conversion ratio of 6Mcf : 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.

About BNK Petroleum Inc.

BNK Petroleum Inc. is a U.S. based 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 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.

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

ots Originaltext: BNK Petroleum Inc
Im Internet recherchierbar: http://www.presseportal.de

Contact:
CONTACT: For further information: Wolf E. Regener +1(805)484-3613,
Email:investorrelations@bnkpetroleum.com