BNK Petroleum Inc. Announces New Senior Credit Facility

Camarillo, California (ots/PRNewswire) -

TSX ticker symbol; BKX

BNK Petroleum Inc. (the "Company") is pleased to announce that
its indirect wholly owned subsidiary BNK Petroleum (US) Inc. ("BNK
US") has obtained a new US$76,000,000 credit facility ("new
facility") from Morgan Stanley Capital Group Inc. ("MSCGI"). The
initial commitment amount of the new reserve-based facility is
US$61,000,000 with an additional uncommitted amount of US$15,000,000
available at the discretion of MSCGI. A portion of the proceeds from
the initial advance under the new facility were used to repay BNK US'
existing Senior First Lien Secured Credit Facility, which had a fully
drawn borrowing base of US$32,000,000.

After the repayment of the existing facility, the proceeds from
the new facility are primarily intended to fund drilling of
Sycamore/Caney and Woodford wells in the Tishomingo field. A portion
of the proceeds may also be used for general corporate purposes,
including the Company's European activities. The new facility will
bear interest at a per annum rate equal to the greater of 1% and the
then three month LIBOR plus an applicable margin ranging from 4% to
9% based on the ratio of outstanding borrowings to present value of
proved developed producing reserves discounted at 9% ("PDP PV9"). The
facility provides for principal amortization beginning July 1, 2013
through the maturity of the facility in five years. Amortization is
determined based on a formula of PDP PV9 to outstanding debt subject
to a minimum monthly amortization of US$300,000 a month beginning in
January 2014.

Commenting on the new facility, Wolf Regener, President and CEO,
said: "We are pleased to have received this new, larger facility from
MSCGI which will allow the Company to drill additional Sycamore/Caney
shale wells and speed up the pace of development of its Woodford
shale assets. The test results from our Sycamore/Caney exploration
wells have been very encouraging and we hope to be able to continue
to improve on flow rates in future wells and create substantial value
from these new intervals."

David Lazarus, Executive Director, Morgan Stanley & Co, stated:
"We are delighted to provide BNK with a creative solution to fund the
development of its Oklahoma producing properties. Highlighting Morgan
Stanley Capital Group, Inc.'s extensive experience with innovative
financing, hedging, physical supply and offtake solutions, this
facility provides BNK with the development capital that it needs
today, with the added benefit of automatic interest rate and
amortization reductions as BNK's asset value increases."

Europe

In Germany, the Company has decided to stop its exploration
activities in selected areas and intends to relinquish its five
concessions in Thuringia, Saxony-Anhalt and Lower Saxony. The
geological work conducted over the last few years indicates an
increased geological risk for unconventional oil and gas projects on
these concessions. This decision is the result of an internal ranking
of all of the Company's international projects, which considers the
geological risk and expected resource potential. The Company will
concentrate its unconventional exploration efforts in Germany on its
three remaining concessions in North Rhine Westphalia.

In Spain the Company has submitted five separate Environmental
Impact Assessment ("EIA") documents for its exploration permits on
its Sedano and Urraca concessions. The EIA's are part of the process
to obtain approval to drill exploration wells on these concessions.

In Poland, as was stated in the Company's January 13, 2013 press
release, the Company is still awaiting approval for the re-entry of
the Gapowo B-1 well to drill a horizontal leg.

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 use of proceeds from the new facility and future well
development and approval for the drilling of a horizontal leg in 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 will be
available when required, 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 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 unexpected
geological results are encountered in Oklahoma, 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, 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.

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

ots Originaltext: BNK Petroleum Inc.
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