Saponis Awards Drilling Contract

Saponis Investments Sp. Z o.o. has awarded a contract to NAFTA Pila to drill the Wytowno S-1 and Lebork S-1 wells on the Slawno and Slupsk concessions in Poland.

NAFTA Pila recently completed drilling the Lebien LE1 well and is currently drilling the Legowo LE1 well, both for Lane Energy Poland.  These two shale gas wells are located on concessions directly offsetting the Saponis concessions.

Surface agreements have been secured for both the Wytowno S-1 and Lebork S-1 wells. Surface site construction is underway and rig release and mobilization from the Legowo LE1 well and site construction will determine the drilling schedule.

In 2008, Saponis applied for Starogard, Slupsk and Slawno concessions located in Northern Poland which total about 730,000 gross acres. The concessions were awarded in June 2009.

Saponis was initially held 80% by BNK Petroleum Inc. and 20% by LNG Energy Ltd.  In October 2009, the BNK  farmed out its 80% interest in the concessions to Rohöl-Aufsuchungs Aktiengesellschaft ("RAG") and Sorgenia E&P S.p.A.

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 LNG will pay its 20% share.

RAG/Sorgenia will earn a combined 53.23% interest in Saponis, BNK’s interest will reduce to 26.67% and LNG will maintain its 20% interest.

Source: BNK Petroleum Inc.