BNK Petroleum Inc. announces $5.1 million private placement

    CALGARY, June 30 /CNW/ - BNK Petroleum Inc. (TSX: BKX) (the "Company") is
pleased to announce that it intends to complete a non-brokered private
placement of up to 17,000,000 common shares at Cdn.$0.30 per share for gross
proceeds of Cdn.$5,100,000, subject to the approval of the Toronto Stock
Exchange. From the net proceeds of the financing, the Company intends to make
a U.S.$500,000 loan payment to Bankers Petroleum Ltd. ("Bankers") under its
subordinated loan agreement with Bankers (the "Subordinated Loan"), and repay
U.S.$ 1 million of unsecured non-interest bearing loans previously made to the
Company by three of its directors and its Chief Executive Officer to assist
the Company in obtaining a waiver from Bankers of certain repayment
obligations under the Subordinated Loan that would have been otherwise
applicable in connection with the closing of the Company's previously
announced credit facility with Wells Fargo Energy Capital, Inc. The balance of
the net proceeds will be used by the Company for general working capital
    All common shares issued pursuant to this financing will be subject to a
four month hold period commencing on the date of the closing. Closing is
expected to occur on or about July 15, 2009, subject to receipt of all
necessary regulatory and stock exchange approvals.

    About BNK Petroleum Inc.

    BNK Petroleum Inc. is a California based oil and gas exploration and
production company focused on finding and exploiting large oil and gas
resource plays. The Company holds an average of 50% interest in the Tishomingo
gas field in Oklahoma and varied interests in three other areas in the
Northern and Central regions of the United States, where it is currently
pursuing the exploration, development and production of shale and tight sand
gas plays. The Company's shares are traded on the Toronto Stock Exchange under
the stock symbol BKX.

    This document contains certain forward looking statements including
statements regarding the Company's intention to complete the private placement
and its expected use of proceeds. Forward looking information is based on
management's expectations regarding, among other things, current and future
economic and industry conditions and whether or not the private placement will
be fully subscribed, and involves significant known and unknown risks and
uncertainties, which could cause actual results to differ materially from
those anticipated. These risks include, but are not limited to: the risks
associated with the oil and gas industry (e.g., operational risks in
development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks), risk associated with equipment procurement and equipment
failure, risks related to international operations and doing business in
foreign jurisdictions, 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 the necessary
regulatory approvals and financing to proceed with the continued expansion of
our various existing and proposed projects. In addition, the current financial
crisis has resulted in severe economic uncertainty and resulting illiquidity
in credit and capital markets which increases the risk that actual results
will vary from forward looking expectations and these variations may be
material. These risks and uncertainties are described in detail in BNK's
Annual Information Form for the year ended December 31, 2008, which is
available at The Corporation assumes no obligation to update or
revise the forward-looking information to reflect new events or circumstances,
except as required by law.

    The TSX does not accept responsibility for the adequacy or accuracy of
    this news release

For further information:

For further information: Wolf Regener, President and Chief Executive
Officer, (805) 484-3613, Email:, Website:

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