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BNK Petroleum Inc. Announces C$11.0 Million Financing

PR Newswire


/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CAMARILLO, California, Oct. 14, 2016 /PRNewswire/ -- BNK Petroleum Inc. (the "Company") (TSX: BKX) is pleased to announce that the Company has filed a preliminary short form prospectus in connection with a proposed offering of up to 55,000,000 common shares (the "Shares") of the Company at a price of C$0.20 per Share (the "Issue Price") to raise aggregate gross proceeds of approximately C$11,000,000 (the "Offering").  The Offering will be co-led by GMP FirstEnergy and Haywood Securities Inc. (collectively, the "Agents").  The Shares are being offered by the Agents on a "commercially reasonable efforts" basis.

Wolf Regener, President & CEO commented "This offering will allow us to facilitate the further development of our Tishomingo Field in a low cost environment.  We believe that our Tishomingo Field asset has great potential for additional cash flow and reserve additions creating substantial value for our shareholders.  After the prolonged industry downturn and significant cost cutting, we are looking forward to beginning a drilling program as we continue to focus on cost reductions."

Certain insiders of the Company have indicated that they will participate in the Offering.  Such participation would be considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101").  The transaction will be exempt from the formal valuation and minority shareholder approval requirements under MI 61-101.

Closing of the Offering is expected to occur on or about October 28, 2016 and is subject to the receipt of applicable regulatory approvals, including approval of the Toronto Stock Exchange.

The Shares will be offered by way of a short form prospectus which has been filed in British Columbia, Alberta, Manitoba and Ontario pursuant to National Instrument 44-101 Short Form Prospectus Distributions, in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and in such other jurisdictions as the Company and the Agents may agree.

About BNK Petroleum Inc.

BNK Petroleum Inc. is an international oil and gas exploration and production company focused on finding and exploiting large, predominately unconventional oil and gas resource plays. Through various affiliates and subsidiaries, the Company owns and operates shale oil and gas properties and concessions in the United States. Additionally the Company is utilizing its technical and operational expertise to identify and acquire additional unconventional projects. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.

Caution Regarding Forward-Looking Information

This release contains forward-looking information including statements regarding the Offering and the use of proceeds therefrom and the timing thereof. The use of any of the words "target", "plans", "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements.  Such forward-looking information is based on management's expectations and assumptions, including that the Company will obtain the necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and the other conditions to closing the Offering will be satisfied.  Forward-looking information 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: any of the assumptions on which such forward-looking information is based vary or prove to be invalid, including that the Company will be unable to obtain the necessary regulatory approvals, including the approval of the Toronto Stock Exchange, and the other conditions to closing the Offering will not be satisfied in a timely manner or at all, and the other risks identified in the Company's most recent Annual Information Form under the "Risk Factors" section, the Company's most recent management's discussion and analysis and the Company's other public disclosure, available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to take into account important factors that could cause actual costs or results to differ materially, there may be other factors that cause actual results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The forward-looking information included in this release is expressly qualified in its entirety by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking information.  The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES IN THE UNITED STATES.  THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

For further information: Wolf E. Regener, +1 (805) 484-3613, Email: investorrelations@bnkpetroleum.com, Website: www.bnkpetroleum.com






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