BNK Petroleum Inc. Announces New Senior Credit Facility and Operations Update

Camarillo, California (ots/PRNewswire) -

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$100,000,000 credit facility ("new
facility") from Morgan Stanley Capital Group Inc. ("MSCGI"). The
initial commitment amount of the new reserve-based facility is
US$15,900,000.

The proceeds from the new facility are intended to fund drilling
of Caney shale oil wells in the Tishomingo field in Oklahoma. The new
facility will bear interest at a per annum rate equal to then three
month LIBOR plus an applicable margin ranging from 2% to 7% based on
the ratio of outstanding borrowings to present value of proved
developed producing reserves discounted at 9% ("PDP PV9"). The
facility provides for interest only payments until the July 2018
maturity date. Additional commitment amounts will be subject to new
reserve evaluations.

Commenting on the new facility, Wolf Regener, President and CEO
said "We are pleased to once again be working with MSCGI, and
appreciate their shared belief in the potential of our assets. This
facility has been structured to grow with our future cash flow needs
and to expand our planned drilling program beyond the 3 Caney wells
previously announced. Our intention is to continue our Caney drilling
program throughout 2014 and 2015."

Oklahoma - Tishomingo Field

The Company has completed drilling the Wiggins 11-2H well (93.4%
working interest) with a 5,050 foot treatable lateral section. The
Wiggins 11-2H, the first of three planned Caney formation wells
previously announced, was drilled vertically, had an extensive suite
of logs run, was subsequently plugged back and horizontally
directionally drilled. This lateral was placed in what the Company
believes is the most productive stratigraphic portion of the Caney,
based on the analysis of previous well results and the pilot hole.
The fracture stimulation of the well is expected to begin within the
next two weeks. The drilling rig is moving to the Hartgraves 1-5H
location and is expected to begin drilling within the week. The
Hartgraves 1-5H well (100% working interest) is expected to be
drilled in less than 30 days as it will not have a pilot hole.

After drilling the Hartgraves 1-5H well the Company's net Caney
acreage will have increased to about 15,500 acres.

Poland

As previously announced, the Company successfully placed proppant
in 9 of the 20 stages attempted in its Gapowo B-1 horizontal well,
and is continuing its recovery of the fracture stimulation fluid
("fluid"). Mechanical issues with the artificial lift equipment
resulted in a fluid recovery rate that was slower than anticipated.
The mechanical issues were corrected late last week, and fluid
recovery re-commenced at higher rates. As of this date, 21% of the
fluid has been recovered, with continuous natural gas being produced
from the well.

The well has had gas rates spiking to over one million cubic feet
per day for short periods of time, and is currently averaging between
200,000 to 400,000 cubic feet per day. These gas rates may continue
to increase as the well continues to unload fluid. The preliminary
flowback and gas production results obtained so far indicate that the
fracture stimulation may have achieved a lower than desired effective
permeability. The Company believes that only a few of the 9 stages
may have been successful in creating the desired conductivity.
Downhole pressure recorders were installed which will provide further
information during the continued flowback. This data will also help
in understanding the stronger-than-expected build-up that occurred
during the period when the well was shut-in for mechanical repairs.

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 and Spain. 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.

This news release contains short-term production rates. Readers
are cautioned that such production rates are not necessarily
indicative of long-term performance or of ultimate recovery.

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 Caney and Gapowo
B-1 wells development, including plans, anticipated results 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 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 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, 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 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. 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

(BKX.)

ots Originaltext: BNK Petroleum Inc.
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