Mr. Wolf Regener reports

BNK PETROLEUM INC. ANNOUNCES NEW SENIOR CREDIT FACILITY AND OPERATIONS UPDATE

BNK Petroleum Inc.'s indirect wholly owned subsidiary BNK Petroleum (U.S.) Inc. has obtained a new $100-million (U.S.) credit facility from Morgan Stanley Capital Group Inc. The initial commitment amount of the new reserve-based facility is $15.9-million (U.S.).

The proceeds from the new facility are intended to finance drilling of Caney shale oil wells in the Tishomingo field in Oklahoma. The new facility will bear interest at a per annum rate equal to then three-month London interbank offered rate plus an applicable margin ranging from 2 per cent to 7 per cent based on the ratio of outstanding borrowings to present value of proved developed producing reserves discounted at 9 per cent. The facility provides for interest-only payments until the July, 2018, maturity date. Additional commitment amounts will be subject to new reserve evaluations.

Commenting on the new facility, Wolf Regener, president and chief executive officer, said: "We are pleased to once again be working with MSCGI and appreciate their shared belief in the potential of our assets. This facility has been structured to grow with our future cash flow needs and to expand our planned drilling program beyond the three Caney wells previously announced. Our intention is to continue our Caney drilling program throughout 2014 and 2015."

Oklahoma -- Tishomingo field

The company has completed drilling the Wiggins 11-2H well (93.4-per-cent working interest) with a 5,050-foot treatable lateral section. The Wiggins 11-2H, the first of three planned Caney formation wells previously announced, was drilled vertically, had an extensive suite of log run, and was subsequently plugged back and horizontally directionally drilled. This lateral was placed in what the company believes is the most productive stratigraphic portion of the Caney, based on the analysis of previous well results and the pilot hole. The fracture stimulation of the well is expected to begin within the next two weeks. The drilling rig is moving to the Hartgraves 1-5H location and is expected to begin drilling within the week. The Hartgraves 1-5H well (100-per-cent working interest) is expected to be drilled in fewer than 30 days as it will not have a pilot hole.

After drilling the Hartgraves 1-5H well, the company's net Caney acreage will have increased to about 15,500 acres.

Poland

As previously announced, the company placed proppant in nine of the 20 stages attempted in its Gapowo B-1 horizontal well, and is continuing its recovery of the fracture stimulation fluid. Mechanical issues with the artificial lift equipment resulted in a fluid recovery rate that was slower than anticipated. The mechanical issues were corrected late last week, and fluid recovery recommenced at higher rates. As of this date, 21 per cent of the fluid has been recovered, with continuous natural gas being produced from the well.

The well has had gas rates spiking to over one million cubic feet per day for short periods of time, and is currently averaging between 200,000 to 400,000 cubic feet per day. These gas rates may continue to increase as the well continues to unload fluid. The preliminary flowback and gas production results obtained so far indicate that the fracture stimulation may have achieved a lower than desired effective permeability. The company believes that only a few of the nine stages may have been successful in creating the desired conductivity. Downhole pressure recorders were installed, which will provide further information during the continued flowback. These data will also help in understanding the stronger than expected buildup that occurred during the period when the well was shut in for mechanical repairs.

We seek Safe Harbor.