BNK Petroleum Inc. work Tender Selects Drilling Contractor in Poland and Provides Corporate Update

By Bnk Petroleum Inc, PRNE
Tuesday, October 5, 2010

CAMARILLO, California, October 6, 2010 - BNK Petroleum Inc. (the "Company") (TSX: BKX) provides the following
corporate and operations update:


In Poland, through Saponis Investments Sp. Z o.o. ("Saponis"), the
Company has completed the major tenders for the services to drill the Wytowno
S-1 and Lebork S-1 wells on the Slawno and Slupsk concessions in Poland,
including the award of the drilling rig contract to NAFTA Pila. NAFTA Pila
recently completed drilling the Lebien LE1 well and is currently drilling the
Legowo LE1 well, both for Lane Energy/Conoco Phillips. These two wells are
shale gas test wells located on concessions directly offsetting the Company's
Saponis concessions. Surface agreements have been secured for both the
Wytowno S-1 and Lebork S-1 wells. Surface site construction is underway and
rig release and mobilization from the Legowo LE1 well and site construction
will determine the Saponis drilling schedule. The Company owns 26.6% of
Saponis and the rest of Saponis is owned by Rohol-Aufsuchungs
Aktiengesellschaft ("RAG"), Sorgenia E&P S.p.A. ("Sorgenia") and by LNG
Energy through a subsidiary. The Company is obliged to pay approximately 6.6%
of the drilling costs of these first two wells with the other 20% of the
Company's interest being paid by RAG and Sorgenia under the terms of the
Company's farm-out to RAG and Sorgenia. The Company holds 195,000 net acres
in Poland through Saponis and a further 880,000 adjacent net acres through
another European subsidiary.

The Company is also pleased to announce the appointment of Jack
as its Country Manager in Poland. Mr. Wroblewski brings valuable
Polish operational experience to the Company. He has held a number of
significant positions in the Polish oil and gas sector. His past positions
include General Director of another exploration and production operator in
Poland, General Director of the Polish Organization of Oil Industry and
Trade, and Deputy Director of the Department of Geology and Director of the
Bureau of Geological Concessions for the Polish Ministry of Environment,
Natural Resources and Foresty. Mr. Wroblewski holds a Ph.D. in Earth Sciences
and a M.Sc. in engineering geology from the University of Warsaw. "We are
very pleased that he has joined our company and I feel that he is a great
addition to our team." said Wolf Regener, the Company's President and CEO.

In Germany, the Company has undertaken additional geological work to
further high-grade its concessions and to gather additional data from not
only the primary shale targets but also from the secondary shale targets on
the concessions. The Company intends to begin the German concession farm-down
process during the second quarter 2011.

The Company has also agreed to acquire from an arm's length party the
minority interest it does not already own in an entity formed to pursue other
oil and gas concession applications within Europe. Consideration for the
acquisition includes re-imbursement of costs, 1,000,000 share purchase
warrants, each excercisable subject to vesting to acquire one additional
share at a price of C$2.85 for a period of three years, US$200,000 in cash
and reimbursement of costs which are not expected to exceed US$100,000. The
cash and the warrants will only become payable or exercisable, as applicable,
in tranches if, as and when additional concessions are acquired by the

The Company, through its European subsidiaries, continues to pursue
concession applications in various European countries with a view to
increasing the number of European basins in which it has holdings. Progress
of many of the concession applications is slowing as a result of increased
competition and awareness of shale gas potential in Europe.

United States

As a result of the current weakness in natural gas and natural gas
liquids prices, the Company has adjusted its work program for its Tishomingo
Woodford shale field in Oklahoma. The Company had previously planned a
down-spacing pilot well test program which will be deferred to conserve
working capital, while fracture stimulations on existing wells will continue
but at a slower pace. A further 13 net stages have been fracture-stimulated
since the Company's second quarter MD&A update. Ten of the 13 net stages are
still flowing back fracture stimulation fluid and thus do not yet have
stabilized rates. Currently production is approximately 1,300 boepd.

BNK Petroleum (US) Inc. the Company's indirect wholly-owned subsidiary
which holds its US oil and gas interests in the United States, including its
producing Tishomingo field, has received a commitment letter from a lender to
provide $20 million in a new reserve-based loan facility with a three-year
term. The new facility would substantially replace its existing credit
facility that at September 30, 2010 had an estimated outstanding balance of
$23.3 million. The Company is also in discussions with other lenders to
provide additional financing on substantially identical terms that would
increase the total size of the new facility from $20 million to $23.8
. It is anticipated that the new facility will not require monthly
principal payments and accordingly is expected to free up cash flow for other

Future Financial Options

With the combination of increased production through additional fracs and
the refinancing of its existing credit facility, management believes that
cash on hand and cash flow from operations will be sufficient to fund its
planned exploration activities in the United States and its required
exploration activities in Poland and Germany. The Company also believes that
expanded exploration activities in Poland and Germany beyond those now
required and potential exploration activities resulting from the granting of
future concessions will be financed through farm-out arrangements with other
companies that will finance the drilling programs on these projects, and/or
by the proceeds of additional equity or debt offerings.

While the Company continues to pursue its strategy of farming-out
exploration costs and risk on its European concessions, successful well
results from basin competitors and/or Company wells may accelerate the
Company's capital expenditure plans and commitments in Europe and,
accordingly, the Company intends to file a short form base shelf prospectus
in certain Canadian jurisdictions to facilitate its ability to raise
additional capital if required.

Subject to receipt of all necessary approvals the shelf prospectus, when
made effective, would provide for the potential offering by the Company of
common shares, debt securities, warrants for the purchase of common shares or
debt securities, subscription receipts, or any combination thereof, in
selected Canadian provinces to raise an aggregate amount of up to C$200
during the 25 months following final receipt.

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 planned
drilling schedule and other exploration activities, costs and acquisition and
farm-out plans for its concessions in Europe, its development activities on
its Tishomingo field in Oklahoma, its expectations regarding the terms and
amount of the proposed replacement credit facilities, its expectations
regarding additional capital requirements, its expectations regarding
availability of farm-outs and its ability to raise capital through debt and
equity issues to finance its future commitments and its intention to file a
short form base shelf prospectus for the potential issue of a combination of
debt and/or equity securities to permit the Company to raise proceeds of up
to C$200 million over the 25-month period following such prospectus becoming
effective. Forward-looking information is based on plans and estimates of
management at the date the information is provided and certain factors and
assumptions of management, including that the required capital and approvals
will be available when required to carry out its planned exploration and
development activities, that a final agreement for a replacement credit
facility or facilities will be entered into on the terms and in the amounts
anticipated, that the Company will be able to obtain farm-out participants on
acceptable terms to pay a significant amount of the exploration activities on
its European concessions, that interest in shale gas potential will continue,
that exploration results will be positive, that the Company will file and
obtain a final receipt for its base shelf prospectus in the applicable
Canadian jurisdictions, and that it will be able to raise funds through
issuances of securities under the shelf prospectus when required.
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 risks related to international operations and doing business in foreign
jurisdictions, including governmental policies regarding awarding of
concessions and permits, risks associated with the oil and gas industry and
exploratory and development activities generally (e.g., operational risks in
development, exploration and production, delays or changes in plans with
respect to exploration or development projects or capital expenditures, risks
associated with equipment procurement and equipment failure), the risk of
commodity price and foreign exchange rate fluctuations, risks related to
future royalty rate changes, and risks and uncertainties associated with
securing and maintaining necessary regulatory approvals, including regulatory
approvals required in respect of the short form base shelf prospectus, risks
related to the global economy and uncertainty and volatility of the credit
and capital markets, counterparty risk related to the stability and viability
of the Company's lenders and farm-out participants, risks inherent in
estimates of reserves and the accuracy of assumptions underlying such
estimates and other risks and uncertainties disclosed in the Company's annual
and quarterly management's discussion and analysis, NI 51-101 reports, and
most recent annual information form available for viewing under the Company's
profile at The Company undertakes no obligation to
update these forward-looking statements, other than as required by applicable

"Boe"s may be misleading, particularly if used in isolation. A Boe
conversion ratio of 6Mcf : 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.

About BNK Petroleum Inc.

BNK Petroleum Inc. is a U.S. based 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 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.

    For further information:

    Wolf E. Regener +1(805)484-3613

For further information: Wolf E. Regener +1(805)484-3613, Email: investorrelations at

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