BNK Petroleum Inc. Announces Sale of Woodford Assets; Accelerates Drilling in BNK's Caney Formation

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 entered into a Purchase and Sale Agreement with XTO Energy
Inc. ("XTO"), a subsidiary of Exxon Mobil Corporation, for the sale
by BNK US of its Tishomingo Field, Oklahoma assets other than the
Caney and upper Sycamore formations, for US$147.5 million, subject to
customary closing adjustments.

Subject to completion of customary conditions, the transaction is
expected to close in late April. If the transaction is completed, the
proceeds of the sale are expected to be used to accelerate the
drilling of Caney wells in the Tishomingo field, the Company's
ongoing exploration efforts in Europe and for repayment of the
Company's credit facility.

Wolf Regener BNK's President and CEO, stated: "We are very pleased
to announce this transaction, which is the culmination of the
Company's efforts to maximize the value of our Woodford shale gas
assets. The transaction is also structured to preserve our rights in
the relatively undeveloped Caney and Upper Sycamore formations in the
Tishomingo Field. We believe these intervals represent a promising
opportunity to develop new oil reserves and production, in an area in
which we have a successful operating history. If completed, this
transaction will provide the Company with sufficient funds to
accelerate our planned Caney development and flexibility to pursue
our exciting European projects on our own or with partners."

Macquarie Capital Markets Canada Ltd. is the lead financial
advisor to the Company in connection with this transaction, and has
delivered an opinion to the Company's board of directors that, as of
the date hereof and based upon and subject to the assumptions,
limitations and qualifications set forth in the opinion, the
consideration to be received by the Company pursuant to the
transaction is fair, from a financial point of view, to the Company.

Update on Caney Development

A drilling rig is currently mobilizing to the next planned Caney
well, the Barnes 6-3H well. Once it is rigged up, drilling is
expected to begin immediately. The drilling rig has been contracted
for two wells with the option for two additional wells.

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 sale of
the Company's Woodford shale, Tishomingo assets (the "Proposed
Sale"), the anticipated use of proceeds from the Proposed Sale and
Sycamore/Caney wells development. 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 conditions to
completion of the Proposed Sale will be satisfied and that the
Proposed Sale will be completed as expected, that 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 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 conditions to completion of the Proposed Sale will
be not be satisfied or that the Proposed Sale is otherwise not
completed in the anticipated timeframe or at all, 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 and
uncertainties applicable to exploration and development 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, 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. The
Company undertakes no obligation to update these forward-looking
statements, other than as required by applicable law.

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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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