BNK Petroleum Inc. - 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 as well as its Polish shale gas project.

Oklahoma - Tishomingo Field

BNK's strategy for its 2013 Caney drilling program was to prove
the productivity of the Caney formation in our Tishomingo field. The
Company's efforts were focused on increasing the oil rate of each
consecutive well, reducing drilling time and cost, testing the
optimal lateral placement within the formation and optimizing the
fracture stimulations. These goals have been successfully achieved.

Recently, in the Wiggins 12-8H, (96.5% working interest) the
Company also focused on reducing completion costs by testing various
fracture stimulation techniques. This work has contributed to a
dramatic reduction in future estimated completion costs, as discussed
below.

The Wiggins 12-8H, while still recovering stimulation fluid from
its fracture treatment, has been steadily improving, with a recent 24
hour production rate of 300 Barrels of oil per day (BOPD) or 420
Barrels of oil equivalent per day (BOEPD). Due to technical issues
encountered during the drilling of the Wiggins 12-8H and the testing
of different fracture stimulation techniques, only 2,600 feet of
lateral was effectively stimulated - approximately half the effective
length planned in our Caney wells. Most importantly, on a net
stimulated stage basis, oil production from this shorter lateral is
comparable to the production from the Barnes 7-2H well.

Our previously completed well, the Barnes 7-2H (98.1% working
interest) had a 30 day oil rate of 406 BOPD (520 BOEPD) and a 24 hour
peak rate of 520 BOPD (750 BOEPD). This was the Company's first well
which targeted the lower Caney interval and, despite a completion
interval 15% shorter than previous wells, is producing at higher oil
rates and significantly slower decline rates than previous wells
placed in the Transition zone. The Company plans to return to the
Barnes 7-2H well to stimulate the remaining 15% of the lateral.

BNK rig released its Leila 31-2H well (100.0% working interest) in
a record 17 days and has initiated the fracture stimulation of 7 of
the 33 planned stages. The completion is utilizing one of the new
fracture stimulation techniques successfully tested in the Wiggins
12-8H well. The initial seven stages will be flowed back to fully
evaluate the results prior to continuing with the fracture
stimulation of the rest of the lateral.

Incorporating the significant improvement in drilling times and
cost and the new stimulation technique, the Company expects that its
future Caney wells will be approximately $8 million to drill and
complete. The drilling rig has been released while the Company awaits
the final core work from the Barnes 7-2H well and the results of the
Leila 31-2H stimulation. The Company plans to begin its 2014 drilling
program in the second quarter. Over the next few months the Company
also plans to finish stimulating the remaining stages in the Barnes
7-2H and the Leila 31-2H wells. The Company's net year-end exit rate
was approximately 1,040 BOEPD of which 635 barrels a day were oil
with current net production at 1,415 BOEPD. The Company's net
prospective Caney acreage totals about 14,880 acres.

Wolf Regener, President and Chief Executive Officer commented, "I
am very pleased with the progress our team has made this past year in
reaching our U.S. goals. The reduction of well drilling times, the
refinement of the placement of the laterals and optimization of the
completions has led to our now being able to drill much cheaper
wells, with much lower decline rates and have a higher percentage of
oil in the production mix. In our last two wells, approximately 70
percent of the production is oil versus about 50 percent in previous
wells. A higher mix of oil in our production stream leads to higher
netbacks in the current pricing environment".

The Company's investor presentation has been updated and can be
found on Company's website. The presentation contains comparisons of
a number of the Company's wells as well as an internally modelled
estimated decline curve for its future Caney wells.

Poland

In Poland, the Company has initiated the drilling of the
horizontal lateral with the re-entry of the Gapowo B-1 well, which is
expected to take about 30 days to drill. The well is targeting the
over-pressured, gas charged, organic-rich shales that were
encountered in the vertical Gapowo B-1 well.

While drilling the vertical well, the average and maximum total
gas readings were much higher than those seen in the Company's other
Baltic Basin wells. The analysis of the log and core data leads the
Company to believe that the Lower Silurian and Ordovician shales are
highly prospective for shale gas as the shales have good total
organic carbon, porosities and permeability's. The Company's
geological work indicates that these characteristics are likely to
extend over a significant portion of the Company's Baltic Basin
acreage.

The Company plans to fracture stimulate seven of the available
stages and evaluate the flowback prior to fracture stimulating the
rest of the lateral. This two step approach will provide data to
further optimize the fracture design prior to continuing the
stimulation along the lateral section.

The Company, as well as Esrey Energy Ltd., have increased their
ownership in Saponis Investments Sp. z o.o. ("Saponis") by acquiring
the interests of the other two Saponis shareholders on a pro-rata
basis. The Company now holds a 57.04% interest in Saponis up from the
original 26.7%. The consideration for the acquisition is the
assumption of the future obligations of the selling shareholders in
Saponis on a pro-rata basis.

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 oil and 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. 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
and Gapowo B-1 well development, including plans, anticipated results
and timing, estimated future Caney well costs and the prospectiveness
of the Company's properties. 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 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 new
stimulation techniques will be successful, 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 or shortages 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, new completion techniques
proving to be unsuccessful, 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 equipment failures, permitting delays
or labor or contract disputes or shortages 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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