BNK Petroleum Inc. Announces Completion of C$14.0 Million Financing

Camarillo, California (ots/PRNewswire) -

BNK Petroleum Inc. (the "Company") (TSX: BKX) is pleased to
announce the completion of its previously announced short form
prospectus offering (the "Offering") of common shares of the Company
(the "Shares") through a syndicate of agents co-led by GMP
FirstEnergy and Haywood Securities Inc. and including Macquarie
Capital Markets Canada Ltd.

Pursuant to the Offering, the Company issued 70,000,000 Shares at
a price of C$0.20 per share for gross proceeds of C$14,000,000. The
Company intends to use the net proceeds to fund exploration and
development of its Tishomingo Field, located in Oklahoma, U.S. and
for general corporate purposes.

Wolf Regener, President & CEO, commented:

"With the closing of this offering, which was increased by more
than 25% due to strong support from existing shareholders as well as
new investors, we are moving ahead with a drilling program that will
take advantage of the current low cost environment. The location of
our proposed wellsites offset some of our best performing wells, in a
geologically comparable area. We expect our drilling program to
increase cash flow while at the same time proving up additional
reserves.

"The preparation of our first location is almost complete, we are
currently evaluating bids for a drilling rig and will select a vendor
shortly. We expect to provide a further update when we announce our
third quarter results in early November."

Directors and senior officers of the Company purchased a total of
4,680,000 Shares in the Offering. Accordingly, the Offering
constituted to that extent a "related party transaction" under
Multilateral Instrument 61-101 ("MI 61-101"). The transaction is
exempt from the formal valuation and minority shareholder approval
requirements under MI 61-101 as neither the fair market value of any
shares issued to or the consideration paid by such persons exceeds
25% of the Company's market capitalization. The Company did not file
a material change report more than 21 days before the expected
closing of the Offering as the details of the Offering and the
participation therein by related parties of the Company were not
settled until shortly prior to closing and the Company wished to
close on an expedited basis for sound business reasons.

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.
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

This release contains forward-looking information including
statements regarding the use of proceeds from the Offering and
expected results. Such forward-looking information is based on
management's expectations and assumptions, including that the
Company's geologic models will be validated, that indications of
early results are reasonably accurate predictors of the
prospectiveness of the shale intervals, that previous exploration
results are indicative of future results and success, 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 design and performance improvements will reduce
development time and expense and improve productivity, that
discoveries will prove to be economic, that anticipated results and
estimated costs will be consistent with managements' expectations,
that all required permits and approvals and the necessary labor and
equipment will be obtained, provided or available, as applicable, on
terms that are acceptable to the Company, 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, credit facilities, farm-ins or
other participation arrangements to maintain its projects, that funds
will be available from the Company's reserves based loan facility
when required to fund planned operations, that the Company will not
be adversely affected by changing government policies and
regulations, social instability or other political, economic or
diplomatic developments in the countries in which it operates and
that global economic conditions will not deteriorate in a manner that
has an adverse impact on the Company's business and its ability to
advance its business strategy.

Forward looking information involves significant known and unknown
risks and uncertainties, which could cause actual results to differ
materially from those anticipated. These risks include, but are not
limited to: 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, that the Company's geologic and reservoir
models or analysis are not validated, that the Company will not
achieve the results anticipated, the risks associated with the oil
and gas industry (e.g. operational risks in development, exploration
and production; delays or changes in plans with respect to
exploration and development projects or capital expenditures; the
uncertainty of reserve and resource estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks, including flooding and extended interruptions
due to inclement or hazardous weather conditions), the risk of
commodity price and foreign exchange rate fluctuations, risks and
uncertainties associated with securing the necessary regulatory
approvals and financing to proceed with continued development of the
Tishomingo Field, 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 funds will not
be available from the Company's reserves based loan facility when
required to fund planned operations, 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 identified in the Company's most
recent Annual Information Form under the "Risk Factors" section, the
Company's most recent management's discussion and analysis, the final
prospectus for the Offering and the Company's other public
disclosure, available under the Company's profile on SEDAR
athttp://www.sedar.com.

Although the Company has attempted to take into account important
factors that could cause actual costs or results to differ
materially, there may be other factors that cause actual results not
to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate as actual
results and future events could differ materially from those
anticipated in such statements. The forward-looking information
included in this release is expressly qualified in its entirety by
this cautionary statement. Accordingly, readers should not place
undue reliance on forward-looking information. The Company undertakes
no obligation to update these forward-looking statements, other than
as required by applicable law.

Wolf E. Regener, +1-805-484-3613, Email:
investorrelations@bnkpetroleum.com, Website:
http://www.bnkpetroleum.com

ots Originaltext: BNK Petroleum Inc.
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