BNK Petroleum Inc. announces Caney operations update

Camarillo, California (ots/PRNewswire) -

BNK Petroleum Inc. (the "Company" or "BNK") , is providing an
update on its Tishomingo Field, Caney oil shale operations in
Oklahoma.

The Company's Hartgraves 5-3H Caney well was successfully fracture
stimulated in September and, while it is early in the flowback phase,
the well has, over the last 4 days, averaged 1,200 barrels of oil
equivalent per day (boepd) of which 585 barrels a day is oil. The
early production from this well is more constant and twice as good as
the best and previously drilled and fracture stimulated Caney well,
the Dunn 2-2H.

The Dunn 2-2H well had a 24 hour peak rate of 620 BOEPD of which
300 barrels was oil. The 30 day initial production (IP) rate for this
well is 420 BOEPD of which 195 barrels is oil. The Barnes 6-3H well,
where only 11 out of 17 stages were fracture stimulated, had a 30 day
IP rate of 200 BOEPD of which 93 barrels was oil.

The Company believes that the improved production achieved in each
successive Caney well is entirely the result of continuous
improvements in frac design as geologically no significant variations
can be observed. The Company believes that the latest design used in
the Hartgraves 5-3H well, will also reduce the initial production
decline and increase overall recoveries by accessing a much larger
part of the oil shale near the lateral. The estimated cost to drill
and complete the current set of new Caney wells is approximately $11
million per well. It is anticipated that with further design
optimization and a continuous drilling and stimulation program, these
costs can eventually be reduced to between $7 and $9 million per
well.

The Company's latest Caney well, the Barnes 7-2H, has been
vertically drilled and whole core and a full suite of open hole logs
were taken through the Caney, T-zone and Upper Sycamore formations.
This data was acquired to further understand the reservoir, optimize
drilling and fracture stimulation designs, prepare the development
program, support reserves estimates and aid in the end of year
reserves report. Subsequently, the well was plugged back and is
currently drilling the lateral portion of the horizontal leg. It is
anticipated that fracture stimulation operations will begin near the
end of October. The drilling rig will then be moved to the next
location, the Wiggins 12-8H.

The Company has approximately a 100% working interest in each of
the five Caney wells referred to above. As a result of the Company's
recent operations, the Company's net acreage in the Caney formation
in the Tishomingo Field has increased to approximately 13,600 acres.

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 statements regarding Caney wells
development including anticipated results, estimated costs and
timing. 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 anticipated results and estimated costs will be consistent with
managements' expectations, that required regulatory approvals will be
available when required, 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 anticipated results and
estimated costs will not be consistent with managements'
expectations, 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. BOEs/boes may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 Mcf: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.

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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