Mr. Wolf Regener reports

BNK ANNOUNCES OPERATIONS UPDATE

BNK Petroleum Inc. has provided an update on its Tishomingo field, Caney shale oil operations, Oklahoma, as well as its Polish shale gas project.

Tishomingo field, Oklahoma

The company's latest Caney shale oil well, the Hartgraves 1-5H well (100-per-cent interest), is flowing back after being completed with the company's largest hydraulic stimulation to date. Over the last five days, the well has been flowing at an average restricted production rate of 620 barrels of oil equivalent per day, of which 424 barrels are oil. The well began making oil about 10 days ago and averaged over 520 barrels of oil equivalent per day during the last 10 days while cleaning up and improving to the current rate of 620 barrels of oil equivalent per day. The initial rates and flowing pressures indicate the Hartgraves 1-5H should be one of BNK's best Caney wells to date.

Even with the very large enhanced completion used in this well and having encountered some drilling issues, the drilling and completion cost of this well still came in under $8-million. The company continues to optimize its geologic interpretations, drilling practices and completion designs to improve future well performance and costs.

The previously drilled and completed Wiggins 11-2H well (93.4-per-cent interest) had an initial 30-day production rate of 323 barrels of oil equivalent per day, of which 202 barrels were oil. The well had a steeper-than-average decline in the first few weeks, following which the rate of decline slowed significantly. The company attributes this steeper decline to a number of items that were modified in the Hartgraves 1-5H well, including refinement in lateral placement, completion design and flowback procedures.

The drilling rig is currently drilling the lateral in the Emery 17-1H well, which should be completed and flowing back in November.

The company's production in the third quarter, which only included about 30 days of Wiggins 11-2H production and no Hartgraves 1-5H production, averaged 971 barrels of oil equivalent per day. The company's September production averaged 1,087 barrels of oil equivalent per day.

Gapowo B-1H well, Poland

The operations to retrieve downhole pressure gauges in the Gapowo B-1 were completed last week, and a reservoir model analysis is under way. Scale in the tubing delayed operations, pushing the expected completion of the reservoir analysis to late November.

We seek Safe Harbor.