BNK Petroleum Inc. Announces 2013 Year-end Reserves

CAMARILLO, California, March 4, 2014 /PRNewswire/ --

BNK Petroleum Inc. (the "Company" or "BNK") (TSX: BKX) is providing the results of its December 31, 2013 independent reserves evaluation.

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

2013 Gross Reserves Summary

• Total Proved Reserves: 4 million Barrels of oil equivalents (BOEs)
• Proved & Probable Reserves: 15.5 million BOEs
• Proved, Probable and Possible Reserves: 40.9 million BOEs

Net Present Value of Future Net Revenue (before tax, discounted at 10%)

• Total Proved Reserves: U.S.$71 million
• Proved & Probable Reserves: U.S.$286 million
• Proved, Probable and Possible Reserves: U.S.$847 million

These reserves estimates are attributed to the 6 wells already drilled and the assumed drilling of 29 net additional wells for the Proved and Probable reserves and 25 net wells for the Possible reserves at 160 acre spacing (4 wells per section) over the next 4 years. The reserves are allocated to approximately 9,200 net acres in the Company's westerly acreage. This is approximately 63% of the Company's 14,700 net acres in the Tishomingo Field. Based on data from the Company's historical drilling in the deeper Woodford formation correlated with a 3D seismic survey across its entire Tishomingo acreage, the Company anticipates that future wells on its easterly acreage will confirm reserves over its entire acreage. The Company also believes that future well locations will ultimately be able to be further downspaced to increase recoverable reserves.

                                     Summary of Oil & Gas Reserves
                                        Forecast Prices & Costs

                     Light & Medium Oil Natural Gas       Natural Gas
                                                          Liquids         MBOEs
                     BNK                BNK               BNK             BNK
                     Gross    Net       Gross    Net      Gross   Net     Gross    Net
    Reserve Category (Mbbl)   (Mbbl)    (MMcf)  (MMcf)    (Mbbl)  (Mbbl)  (Mbbl)   (Mbbl)
    Proved
         Developed
         Producing    414.3    324.7    666.7    527.0    154.5   122.1   679.9    534.6
         Developed
         Non-
           Producing  321.3    251.2    248.5    194.2    64.7    50.6    427.4    334.2
         Undeveloped  2,188.6  1,728.4  1,692.5  1,336.6  440.8   348.1   2,911.5  2,299.3
    Total Proved      2,924.2  2,304.3  2,607.7  2,057.8  660.0   520.8   4,018.8  3,168.1
    Probable          8,640.4  6,839.1  6,769.6  5,358.1  1,756.6 1.390.4 11,525.3 9,122.5
    Total Proved Plus
    Probable          11,564.6 9,143.5  9,377.3  7,415.9  2,416.6 1,911.2 15,544.1 12,290.6
    Possible          19,077.8 15,378.8 14,752.9 11,892.4 3,842.5 3,097.5 25,379.1 20,458.4
    Total Proved Plus
    Probable
    Plus Possible     30,642.5 24,522.3 24,130.2 19,308.3 6,259.1 5,008.7 40,932.2 32,749.0

                                 Net Present Value of Future Net Revenue
                                        Forecast Prices & Costs

                                Net Present Value of Future Net Revenue ($ millions)
                              Before Income Taxes                     After Income Taxes
    Reserv
    Category            0%      5%    10%    15%    20%       0%     5%    10%   15%   20%

    United States
    Proved
    Developed
    Producing          6.4    22.9   20.5   18.7   17.4     17.4   15.1   13.5  12.2  11.3
    Developed
    Non-Producing     22.3    17.8   14.9   13.0   11.7     14.7   11.6    9.7   8.5   7.6
    Undeveloped       86.4    54.3   35.5   23.8   16.0     57.0   35.8   23.4  15.6  10.5
    Total Proved     135.1    95.0   71.0   55.5   45.0     89.2   62.5   46.6  36.4  29.5
    Probable         486.6   312.3  215.5  156.5  118.1    321.1  203.2  142.4 103.6  78.2
    Total Proved
    Plus Probable    621.7   407.4  286.5  212.1  163.1    410.3  268.7  208.8 140.0 107.7
    Possible       1,297.5   816.0  561.4  410.6  313.8    856.4  538.6  370.6 271.1 207.2
    Total Proved
    Plus Probable
    Plus Possible  1,919.2 1,223.3  847.8  622.7  476.9  1,266.7  807.3  579.4 411.0 314.9

Readers are referred to the Company's Form 51-101F1 Statement of Reserves Data and Other Oil and Gas Information for the year ended December 31, 2013, which can be accessed electronically from the SEDAR website at http://www.sedar.com, for additional information.

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.

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.

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 pre-tax net revenue, the productiveness of the Company's other Tishomingo Field acreage and future downspacing of Caney / Upper Sycamore wells. 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 pre-tax net revenue have been independently evaluated by NSAI with an effective date of December 31, 2013. 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 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, may 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. 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. The Company's expectations regarding the productiveness of the Company's other Tishomingo Field acreage and future downspacing of Caney / Upper Sycamore wells is based on interpretations of geologic and other information by the Company's exploration team at the date the information is provided and is subject to several assumptions of management, including that indications of early results are reasonably accurate predictors of the prospectiveness of the shale intervals and that anticipated results will be consistent with managements' expectations, and is subject to a variety of risks, including that anticipated results will not be consistent with managements' expectations and the Company's geological analyses proving to be inaccurate.

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 and Gas Information for the year ended December 31, 2013, Management Discussion and Analysis and in the Company's Annual Information Form under "Risk Factors", which are available under the Company's profile at http://www.SEDAR.com. The present value of estimated future net revenues referred to herein should not be construed as the current market value of estimated crude oil and natural gas reserves attributable to the Company's properties. The Company undertakes no obligation to update 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