Overview

BNK Petroleum Inc., an international energy company, is focused on the acquisition, exploration, and production of large hydrocarbon reserves, predominately unconventional. The strategic objective is to maximize the value of its U.S. shale gas assets while its European shale gas exploration strategy offers high-impact, large growth potential to BNK. 

BNK Petroleum Inc. was among the early companies to recognize that improvements in horizontal drilling and completion technologies would enable the industry to develop vast new supplies of natural gas from unconventional reservoirs such as shales and tight sandstones. In the early years, as a part of Bankers Petroleum Ltd., BNK Petroleum Inc.'s first project was in Palo Duro, Texas when it began leasing acreage in 2005. Soon after, the Company commenced drilling science wells in Palo Duro, as well as making an additional strategic acquisition.

With risk spread out into multiple projects. BNK Petroleum Inc., then still operating as part of Bankers Petroleum Ltd., began drilling wells in Oklahoma and New York. In July of 2008 the Company was spun out of Bankers Petroleum Ltd. and began trading on its own as BNK Petroleum Inc. under the ticker symbol BKX on the Toronto Stock Exchange. By the end of 2009, the Company reported Proved and Probable reserves of 37.9 million barrels of oil equivalent in its Tishomingo field.

In late 2008 the company applied for its first European shale gas concessions in Poland. Work continued in other countries and basins throughout 2008 and into 2009. The first Polish concessions were granted to BNK in March of 2009. The Company also made concession applications in other basins and countries during 2009.

With a strategically driven commitment to diversifying into multiple shale gas projects, BNK Petroleum Inc. now has approximately 5.0 million gross and 4.4 million net acres of concessions in Eastern and Western Europe in five different basins. BNK's technical team has researched over 30 basins in more than 10 countries for shale gas potential and continues to both apply for and await decisions on previously submitted applications in Europe. 

Operations 

North America

The Tishomingo Project in Oklahoma is currently BNK's largest resource, generating 2P $315.0 million, (December 31, 2010 NI-51-101 reserves report). This project is considered to have high (and growing) potential future recovery, with projected reserves expected to increase as more wells are drilled and infill drilling proves up. In addition, improvements in production rates from refined completion techniques can add to further upside potential. Tishomingo remains BNK Petroleum Inc.'s biggest U.S. prospect for low risk future growth, stability and profitability.

In New York, BNK Petroleum, Inc’s property consists of 18,000 acres that has a good potential for a hydrothermal dolomite play. The Company is currently planning to acquire 2D seismic on its existing acreage to help evaluate the hydrothermal dolomite concept after reprocessing high-quality aeromagnetic data over its acreage. Regionally, over 125 million barrels of oil and 200 Bcf of gas is reported to have been produced from Trenton/Blackriver hydrothermal dolomite fields.

The third of BNK Petroleum Inc.'s primary US projects is the Palo Duro Basin in Texas. With a high SCF/ton of gas in shale, BNK has successfully narrowed down the core area of basin and completed its core work in 5 wells. 

BNK Petroleum, Inc. is evaluating its acreage in the Black Warrior basin and whether it will conduct further activities in the Basin.

Europe

Poland 

In 2008, the Company, through Saponis Investments Sp. z o.o., applied for three concessions in Poland which were awarded in June 2009. The three concessions, Starogard, Slupsk and Slawno, are located in Northern Poland and total about 730,000 gross acres. LNG Energy holds a 20% interest and BNK initially held an 80% interest in the concessions. In October 2009, the Company farmed out its 80% interest in the concessions to RAG and Sorgenia. Under the farm-out agreement RAG/Sorgenia paid $3 million to BNK and will each pay one-half of 73.33% of the next $25 million in total exploration costs, BNK will pay 6.667% and BWB will pay its 20% share. RAG/Sorgenia will earn a combined 53.23% interest in Saponis and BNK’s interest will reduce to 26.67%. BNK’s 26.67% interest in Saponis equates to approximately 195,000 net acres of the Poland concessions.

The three concessions are located in the Baltic Basin. BNK’s current plan is to test multiple targets in the Silurian, Ordovician and Cambrian shales that are located at depths ranging from 7,000 to 12,500 feet. At present BNK has drilled three wells, the Wytowno S1 on the Slawno concession, the Lebork S1 on the Slupsk concession and the Starogard S1. The concessions require the drilling and testing of a second exploratory well on each concession by June 2014.

The Company’s wholly subsidiary, Indiana Investments Sp. z o.o was awarded three oil and gas concessions in the Baltic Basin of Poland in March 2010. The three concessions, Darlowo, Bytow and Trzebielino total approximately 880,000 acres net to BNK. Core analysis and geological work on these concessions have already begun. The work commitment on these concessions also require the commencing of one well on each concession block by September 2012 with a second well drilled and tested by March 2014. The Company is also acquiring approximately 740 km of 2D seismic of which 407 is on the Saponis and 333 km is on the Indiana concessions. 

Germany

BNK was awarded 2 concessions in North Rhine-Westphalia in November 2009 totaling about 500,000 acres, it was also awarded a 300,000 acre concession in Lower Saxony in December of 2009. In January 2010 BNK was awarded 2 concessions in Thuringia totaling 770,000 acres and in March of 2010 BNK was awarded a concession which totaled 840,000 acres bringing BNK's total holdings in Germany to about 2.4 million acres.

All of BNK's concessions were acquired for their potential for shale gas. Across its acreage BNK is primarily targeting 3 different shales. Some concessions also have the potential for "Bakken like" unconventional oil, coal bed methane and tight gas sands.

Spain

In 2011 BNK Petroleum, through its wholly owned subsidiary Trofagas Hidrocarburos, S.L. was awarded two concessions in Spain which total approximately 296,000 acres (1,197 km2). These concessions located in the Cantabrian basin were acquired principally for shale gas targets but also have some conventional oil and gas potential. The primary target is a Jurassic-aged shale, which based on available information, ranges, in the most prospective areas, from 100 to over 200 meters in gross thickness at depths of about 2,500 to 4,500 meters. The structure and stratigraphy are defined by numerous existing 2d seismic lines and dozens of wells that were previously drilled. Most of the previously drilled wells had oil and/or gas shows in the shale interval as well as in fractured carbonates both above and below the shale. These fractured carbonates are the conventional targets.

Board of Directors

Ford Nicholson, Chairman

Ford Nicholson is the President of Kepis & Pobe Financial Group which specializes in developing international energy and other natural resource assets. Over the past 25 years Ford has provided executive management to several international projects. He was a co-founder and Director of Nations Energy Ltd. producing heavy oil in Kazakhstan, a founding shareholder and former board member of Bankers Petroleum Ltd. producing heavy oil in Albania. Ford was also a board member of Tartan Energy Inc, a heavy oil company based in California. Ford is a member of the President's council for the International Crisis Group. Mr. Nicholson has recently joined the board of InterOil Corporation listed on the NYSE, a fully integrated company developing LNG for Asian markets.

Wolf E. Regener, Director, President & CEO

Mr. Regener brings over 24 years of conventional and unconventional E&P experience to BNK Petroleum. In his role as Executive Vice President of Bankers Petroleum, and President of its wholly-owned subsidiary Bankers Petroleum (US), Mr. Regener was instrumental in the formation of BNK Petroleum, and its subsequent spin-off. His career also includes key senior executive positions with Tartan Energy, Alanmar Energy, and R & R Resources. With an extensive operations and finance background, Mr. Regener has been at the forefront of BNK Petroleum's acquisition of unconventional gas projects on an international scale. He holds a Business of Economics degree from the University of California, Santa Barbara, and has served on the Board of Directors of the California Independent Petroleum Association for over fifteen years.

Bob Cross, Director 

Mr. Cross has more than 20 years of experience as a financier in the mining and oil & gas sectors.  He is a co- founder and Non-Executive Chairman of Bankers Petroleum Ltd., Non-Executive Chairman of B2Gold Corp., co-founder and Chairman of Petrodorado Energy Ltd., and until October 2007, was the Non-Executive Chairman of Northern Orion Resources Inc.  Between 1996 and 1998, Mr. Cross was Chairman and Chief Executive Officer of Yorkton Securities Inc.  From 1987 to 1994, he was a Partner, Investment Banking with Gordon Capital Corporation in Toronto.  He has an Engineering Degree from the University of Waterloo, and received his MBA from Harvard Business School in 1987.

 General Wesley K. Clark, Director 

General Wesley K. Clark (retired) served 38 years in the United States Army. His last military position was NATO's Supreme Allied Commander and the Commander-in-Chief of the U.S. European Command. He now heads his own strategic advisory and consulting firm, Wesley K. Clark & Associates and is active in the energy, banking and business services field. He is a noted author and television commentator, a Senior Fellow at UCLA's Burkle Center and works with numerous not-for-profit efforts, including the International Crisis Group. He graduated first in his class from West Point and received a BA and MA as a Rhodes Scholar at Oxford, and numerous honorary degrees from other institutions. Among his awards are the Presidential Medal of Freedom, the Silver Star, Purple Hearts and honorary knighthoods from the United Kingdom and the Netherlands.

Eric Brown, Director

Mr. Brown currently holds the position of Regional Managing Partner for the Meyers Norris Penny, LLP, Alberta Advisory Services practice. He possesses many years of experience in publicly traded company governance as a Director of companies listed on Canadian stock exchanges (TSE, VSE, ASE, CDNX) and has served as Chairman and member of public company audit committees.

Victor Redekop, Director

Mr. Redekop is President of Simmons Energy Services, a privately held provider of drilling and maintenance equipment and services to oil and gas companies internationally. He has over 30 years of experience in various aspects of the oil and gas industry.