BNK Petroleum Inc. Announces Closing of Sale of Woodford Assets

Camarillo California (ots/PRNewswire) -

TSX ticker symbol; BKX

BNK Petroleum Inc. (the "Company" or "BNK") is pleased to
announce that the previously announced sale by its indirect wholly
owned subsidiary BNK Petroleum (US) Inc. to XTO Energy Inc., a
subsidiary of Exxon Mobil Corporation, of its Tishomingo Field,
Oklahoma assets other than the Caney and upper Sycamore formations,
for US$147.5 million has been closed.

The indebtedness under the Company's credit facility has been paid
down to $100,000 with the proceeds from the sale, the Company's
hedging positions have been closed and the balance of the $147.5
million sale price less an approximately $400,000 downward price
adjustment, has been received by the Company. The Company's credit
facility remains in place with the intent of creating future
borrowing capacity from reserves associated with any successful Caney
/ Upper Sycamore wells in the Tishomingo Field.

Wolf Regener, President and CEO, stated: "We are pleased to
announce the closing of this transaction, which puts us in a strong
debt free financial position to advance our ongoing exploration and
development efforts in Oklahoma and Europe. The sale was structured
to preserve our rights in the relatively undeveloped Caney and Upper
Sycamore formations in the Tishomingo Field, which we believe
represent a promising opportunity to develop new oil reserves and
production in an area in which we have a successful operating
history. We now look forward to the results from our next planned
Caney / Upper Sycamore wells, one of which is currently being
drilled. We are also making progress on obtaining drilling permits in
Europe and anticipate being able to drill a lateral out of our Gapowo
B-1 well in Poland later this year."

Update on Caney Development

A drilling rig is currently drilling the Company's next Caney
well, the Barnes 6-3H well. The well has about 1,700 feet of lateral
drilled with another approximately 3,400 feet of lateral left to
drill. The drilling rig has been contracted for two wells with the
option for two additional wells.

Chief Financial Officer

Warren Nelson has stepped down as Chief Financial Officer of the
Company. We wish Warren well in his future endeavours and appreciate
his contributions to the Company.

Gary Johnson has been appointed interim CFO of the Company. Gary
has been with the Company for two years as Financial and
International Controller and has 15 years of accounting experience in
the oil and gas industry. We look forward to Gary's contribution in
this role.

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 the anticipated use of proceeds
from the sale of the Company's Woodford shale, Tishomingo assets,
Sycamore/Caney wells development and the drilling of a lateral out of
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 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 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 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.

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

ots Originaltext: BNK Petroleum Inc.
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