BNP Resources Inc. announces year end results


    CALGARY, March 1 /CNW/ - BNP Resources Inc. ("BNP") announces its
financial and operational results for the period May 16, 2006, through
December 31, 2006.
    During this period, BNP:

    -   Closed its initial Public Flow-Through Share Offering on
        July 18, 2006, raising gross proceeds of $ 10,250,000;
    -   Acquired leases and options on farm-in opportunities of more than
        30,000 gross acres of land in the Peace River Arch, Central Alberta
        and southern Saskatchewan areas.
    -   Expended $ 1.8 million, of which $ 1.1 million was spent on its flow
        through share commitment.
    -   Recorded a loss of $ 90,133;
    -   Drilled and cased three gross wells (2.3 net wells);

    Subsequent to the December 31, 2006, year end BNP:

    -   Achieved successful results at its Medicine River well.
        Production flow tests were approximately 370 thousand cubic feet per
        day (mcf/d) or 62 barrels of oil equivalent (boepd) at a conversion
        ratio of 6 cubic feet to one barrel of oil equivalent. The Company's
        share of tested production is equal to 50% or approximately 185 mcf/d
        or 31 boepd. Production from this well is anticipated to be onstream
        by the beginning of the second quarter of 2007.

    -   Acquired 640 gross acres in a land sale in South Central Alberta.

    -   Entered into, on behalf of itself and two private Canadian companies
        ("BNP's Partners"), an agreement to drill a Debolt test (the "Test
        Well") to earn in up to 1,920 acres of land in the Peace River Arch
        area. BNP's share of costs for the Test Well will be 70%. BNP and
        BNP's Partners shall earn a 60% working interest in 1,280 acres, net
        42% to BNP. In addition, BNP and BNP's Partners shall have the option
        to drill one more Debolt well to earn in the remaining 640 gross
        acres on the same terms.

    -   Elected to drill a well under a seismic review option agreement it
        had previously announced covering 12,480 acres in South Central
        Alberta. BNP shall earn a 100% working interest in 640 acres, subject
        to a non convertible gross overriding royalty. BNP has a continuing
        option to drill new wells or recomplete existing wells to earn in the
        balance of the Option Lands on the same terms.

    -   Relinquished 1,920 of 4,160 gross acres subject to an agreement in
        Southwest Saskatchewan. BNP continues to evaluate the remaining
        2,240 gross acres.

    -   Allowed its option to expire on 5,760 gross acres relating to another
        deal in Southwest Saskatchewan.

    -   Determined that two wells drilled in 2006 were not commercially
        viable. As such, the Company commenced the process of abandoning
        these wells in February 2007. The total cost of the abandonment is
        expected to be approximately $ 100,000 of which the Company's net
        share is $ 88,000.

    Since its startup in 2006, BNP has positioned itself for success with the
completion of its equity issue, setup of a Calgary office location, the
implementation of internal controls and procedures and successful drilling
resulting in anticipated commercial production by the beginning of the second
quarter of 2007.
    The Company has a clear vision to continue to grow its production and
reserves and wishes to deliver significant shareholder value.

    BNP currently has approximately 30,000 gross acres of land in the Peace
River Arch, Central Alberta and southern Saskatchewan areas which it expects
to continue to build upon in 2007. In 2007, the Company plans to drill
approximately 20 gross wells to meet its flow through share commitment.
    BNP is actively engaged in the exploration for, the development and
production of, natural gas and oil reserves. BNP's business strategy is to
build sustainable and profitable per share growth through selective
acquisitions and internally generated exploration and development drilling.
    BNP has approximately 8,500,000 Class A shares and 922,500 Class B shares
issued and outstanding which trade on the TSX Venture Exchange under the
symbols "BNX.A and "BNX.B".
    The entire 2006 December 31, 2006 Financial Statements, Notes and
Management, Discussion and Analysis may be found on the SEDAR website or on the Corporation's website

    ADVISORY: This press release may contain forward-looking statements
including management's assessment of future plans and operations and
expectations of future production, cash flow and earnings. These statements
are based on current expectations that involve a number of 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), commodity price and exchange rate fluctuations and
uncertainties resulting from potential delays or changes in plans with respect
to exploration or development projects or capital expenditures. The
forward-looking statements contained in this press release are made as of the
date hereof and BNP undertakes no obligations to update publicly or revise any
forward-looking statements or information ether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    BNP Resources Inc.
    Balance Sheet

                                                   December 31,       May 15,
                                                          2006          2006
                                                             $             $


    Current assets
    Cash                                             9,142,243     1,100,000
    Receivables, prepaid expenses and other            214,647             -

                                                     9,356,890     1,100,000

    Future income tax                                  334,836             -

    Property and equipment                           1,866,568             -
                                                    11,558,294     1,100,000


    Current liabilities
    Accounts payable and accrued liabilities           849,877             -

    Asset retirement obligation                         91,231             -

    Shareholders' Equity

    Share capital                                   10,675,356     1,100,000

    Contributed surplus                                 31,983             -

    Deficit                                            (90,133)            -
                                                    10,617,206     1,100,000
                                                    11,558,294     1,100,000

    BNP Resources Inc.
    Statement of Loss and Deficit

                                                                  the period
                                                 For the three        May 16,
                                                  months ended       2006 to
                                                   December 31,  December 31,
                                                          2006          2006
                                                             $             $

    Interest income                                    104,195       201,115

    Total net revenue                                  104,195       201,115

    General and administrative                         140,931       247,504
    Stock-based compensation                            13,947        31,983
    Accretion and depreciation                          15,591        21,769
                                                       170,469       301,256
    Loss before income taxes                          (66,274)      (100,141)

    Future income tax expense (recovery)               (4,863)       (10,008)

    Loss for the period                               (61,411)       (90,133)

    Deficit - Beginning of period                     (28,722)             -

    Deficit - End of period                           (90,133)       (90,133)

    Loss per share
    Basic                                              (0.004)        (0.007)

    Weighted average shares outstanding
    Basic                                          16,187,500     12,921,699

    BNP Resources Inc.
    Statement of Cash Flows

                                                                  the period
                                                 For the three        May 16
                                                  months ended       2006 to
                                                   December 31,  December 31
                                                          2006          2006
                                                             $             $

    Cash provided by (used in)

    Operating activities
    Loss for the period                                (61,411)      (90,133)
    Items not affecting cash
      Future income taxes (recovery)                    (4,863)      (10,008)
      Accretion and depreciation                        15,591        21,769
      Stock-based compensation                          13,947        31,983

                                                       (36,736)      (46,389)
    Change in non-cash working capital                   7,672       (52,683)

                                                       (29,064)      (99,072)
    Financing activities
    Issue of Class A common shares                           0     1,025,000
    Issue of Class B common shares                           0     9,225,000
    Share issue costs                                        0      (999,472)
    Change in non-cash working capital                 (16,508)            0

                                                       (16,508)    9,250,528
    Investing activities
    Additions to oil and gas properties             (1,387,657)   (1,722,059)
    Additions to equipment                             (20,884)      (75,067)
    Change in non-cash working capital                 575,282       687,913

                                                      (833,259)   (1,109,213)

    (Decrease) increase in cash                       (878,831)    8,042,243

    Cash - Beginning of period                      10,021,074     1,100,000

    Cash - End of period                             9,142,243     9,142,243

For further information:

For further information: Gregory Bilcox, President and CEO, BNP
Resources Inc., Phone: (403) 695-1091, Fax: (403) 265-0413; Gordon B. Paul, VP
Finance and CFO, BNP Resources Inc., Phone: (403) 695-1095, Fax: (403)

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