BNK Petroleum Inc. - Announces 2016 Year-End Reserves

Camarillo, California (ots/PRNewswire) - BNK Petroleum Inc. (the
"Company" or "BNK") (TSX: BKX), is providing the results of its
December 31, 2016 independent reserves evaluation.

The evaluation of the Company's reserves in the Caney formation of
the Tishomingo Field in Oklahoma was conducted by Netherland, Sewell
& Associates, Inc. ("NSAI") in accordance with National Instrument
51-101 - Standards of Disclosure for Oil and Gas Activities.

2016 Gross Reserves Summary

- Total Proved Reserves 18 million Barrels of oil equivalent (BOE) -
an increase of 1% over the December 31, 2015 estimate
- Proved plus Probable Reserves 42 million BOEs - an increase of 2%
over the December 31, 2015 estimate
- Proved plus Probable plus Possible Reserves 66.5 million BOEs - a
decrease of 4% from the December 31, 2015 estimate

Net Present Value of Reserves discounted at 10%

- Total Proved Reserves before tax of U.S. $149.9 million
- Proved plus Probable Reserves before tax of U.S. $370.7 million
- Proved plus Probable plus Possible Reserves before tax of U.S.
$695.4 million

The above total Proved reserves are attributed to 11 of the Caney
wells already drilled, four Woodford wells (4.9% working interest for
the Company) and the drilling of 32.7 net additional wells over the
next 5 years. The Probable reserves are attributed to the drilling of
40.99 net additional wells. The wells in this report are planned at
107 acre spacing (6 wells per section) on approximately 11,448 net
acres. This is approximately 69 percent of the 16,650 net acres the
Company has in this project. The other 31 percent of the acreage is
on the easterly side of the Company's acreage and based on data from
the Company's historical drilling of the deeper Woodford formation
wells, correlated with a 3D seismic survey, the Company anticipates
that future wells on its easterly acreage will demonstrate that the
Caney is also productive over this easterly acreage.

Wolf Regener, President and CEO commented. "We are very pleased
with the way our existing wells are performing. The estimated
ultimate recovery from the existing wells increased by 1.2 million
barrels of oil equivalent (BOE), as the existing producing wells once
again exceeded the previous year forecast. Our Proved and Probable
reserves increased this year as well. These increases do not
incorporate any of the wells from our 2017 drilling program, which
started in the 3rd week of December 2016. The Company expects these
wells to further increase the Proved and Probable reserves, once the
wells are brought online and a new reserve report is generated."

Summary of
Oil & Gas
Reserves
Tight Oil Shale Natural MBOE's
Gas Gas
Liquids
Reserve BNK Gross Net BNK Net BNK Net BNK(Mbbl) Net(Mbbl)
Category (Mbbl) (Mbbl) Gross (MMcf) (Mbbl) (Mbbl)
(MMcf)
Proved
Developed 1,474.0 1,139.2 2,351.5 1,819.9 556.6 430.8 2,422.5 1,873.3
Producing
Developed 0.0 0.0 251.2 204.1 72.2 58.7 114.1 92.7
Non-Producing
Undeveloped 10,686.1 8,373.0 11,777.5 9,180.1 2,787.9 2,173.1 15,436.9 12,076.1
Total 12,160.1 9,512.2 14,380.2 11,204.1 3,416.7 2,662.6 17,973.5 12,076.1
Proved
Probable 16,270.7 12,944.6 19,258.6 15,350.9 4,562.7 3,637.0 24,043.2 19,140.1
Total 28,430.9 22,456.8 33,638.8 26,555.1 7,979.6 6,299.6 42,017.0 33,182.3
Proved
Plus
Probable
Possible 16,461.2 13,183.6 19,935.5 15,899.9 4,726.0 3,769.4 24,509.8 19,603.0
Total 44,892.1 35,640.0 53,574.4 42,455.0 12,705.5 10,068.9 66,526.7 52,784.7
Proved
Plus
Probable
Plus
Possible

Net
Present
Value of
Future
Net
Revenue
As of
December
31, 2016
Forecast
Prices &
Costs
Net Present
Value of
Future Net
Revenue ($
millions)
Before Income After
Tax Income
Tax
Reserve 0% 5% 10% 15% 20% 0% 5% 10% 15% 20%
Category
United
States
Proved
Developed 57.7 43.5 34.9 29.2 25.2 57.7 43.5 34.9 29.2 25.2
Producing
Developed 1.4 1.1 0.9 0.8 0.7 1.4 1.1 0.9 0.8 0.7
Non-Producing

Undeveloped 314.9 185.9 114.1 70.4 42.1 236.8 147.2 92.8 57.7 34.2
Total 373.9 230.5 149.9 100.4 68.0 295.9 191.8 128.6 87.7 60.1
Proved
Probable 612.5 354.4 220.8 144.5 97.6 404.2 236.4 146.6 94.9 62.9
Total 986.4 584.9 370.7 245.0 165.8 700.1 428.2 275.2 182.6 123.0
Proved
Plus
Probable
Possible 846.4 497.0 324.7 228.6 169.8 558.7 327.6 215.2 153.7 116.6
Total 1,832.8 1,081.9 695.4 473.5 335.5 1,258.8 755.8 490.4 336.3 239.6
Proved
Plus
Probable
plus
Possible

Note: All dollar values are expressed in U.S. dollars.

The Company's reserves are derived from non-conventional oil and
gas activities. The Company's reserves are contained in a shale oil
reservoir from which gas and natural gas liquids are produced as
by-products. "Tight oil" means crude oil (a) contained in dense
organic-rich rocks, including low-permeability shales, siltstones and
carbonates, in which the crude oil is primarily contained in
microscopic pore spaces that are poorly connected to one another, and
(b) that typically requires the use of hydraulic fracturing to
achieve economic production rates. "Shale gas" means natural gas (a)
contained in dense organic-rich rocks, including low-permeability
shales, siltstones and carbonates, in which the natural gas is
primarily adsorbed on the kerogen or clay minerals, and (b) that
usually requires the use of hydraulic fracturing to achieve economic
production rates.

These after income tax net present values reflect the tax burden
on the Company's Tishomingo Field interests on a standalone basis, do
not consider the business-entity-level tax situation, or tax planning
and do not provide an estimate of the value at the level of the
business entity, which may be significantly different. The financial
statements and the management's discussion and analysis (MD&A) of the
Company should be consulted for information at the level of the
business entity.

Readers are referred to the Company's Form 51-101F1 Statement of
Reserves Data and Other Oil & Gas Information for the year ended
December 31, 2016, which can be accessed electronically from the
SEDAR website at www.sedar.com, for additional information.

"BOEs" refers to barrels of oil equivalent. 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. Possible reserves are those additional
reserves that are less certain to be recovered than probable
reserves. There is a 10% probability that the quantities actually
recovered will equal or exceed the sum of provided plus probable plus
possible reserves. The present value of estimated future net revenues
referred to herein does not represent fair market value and should
not be construed as the current market value of estimated crude oil
and natural gas reserves attributable to the Company's properties.

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 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

Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws, including statements regarding estimates of
reserves and future net revenue, expectations regarding additional
reserves and statements regarding Caney wells development, including
plans, anticipated results and timing. 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.
Estimated reserves and future net revenue have been independently
evaluated by NSAI with an effective date of December 31, 2016. This
evaluation is based on a limited number of wells with limited
production history and includes a number of assumptions relating to
factors such as availability of capital to fund required
infrastructure, commodity prices, production performance of the wells
drilled, successful drilling of infill wells, the assumed effects of
regulation by government agencies and future capital and operating
costs. All of these estimates will vary from actual results.
Estimates of the recoverable oil and natural gas reserves
attributable to any particular group of properties, classifications
of such reserves based on risk of recovery and estimates of future
net revenues expected therefrom, will vary. The Company's actual
production, revenues, taxes, development and operating expenditures
with respect to its reserves will vary from such estimates, and such
variances could be material. Estimates of after-tax net present
value are dependent on a number of factors including utilization of
tax-loss carry forwards. In addition to the foregoing, other
significant factors or uncertainties that may affect either the
Company's reserves or the future net revenue associated with such
reserves include material changes to existing taxation or royalty
rates and/or regulations, and changes to environmental laws and
regulations. Forward-looking information regarding Caney wells
development and expectations regarding additional reserves are 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 required regulatory
approvals will be available when required, 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 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, and 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, including that
anticipated results and estimated costs will not be consistent with
managements' expectations, the Company or its subsidiaries not being
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 and that equipment failures, permitting
delays or labor or contract disputes or shortages are encountered.

Information on other important economic factors or significant
uncertainties that may affect components of the reserves data and the
other forward looking statements in this release are contained in the
Company's Form 51-101F1 Statement of Reserves Data and Other Oil &
Gas Information for the year ended December 31, 2016, the Company's
Management Discussion and Analysis and the Company's Annual
Information Form under "Risk Factors", which are available under the
Company's profile at www.SEDAR.com. The Company undertakes no
obligation to update forward-looking statements, other than as
required by applicable law.

ots Originaltext: BNK Petroleum Inc.
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Wolf E. Regener, +1 (805) 484-3613, Email:
investorrelations@bnkpetroleum.com, Website: www.bnkpetroleum.com

Original-Content von: BNK Petroleum Inc., übermittelt durch news aktuell