TSX ticker symbol; BKX
CAMARILLO, CA, Oct. 28, 2016 /CNW/ - BNK Petroleum Inc. (the
"Company") (TSX: BKX) is pleased to announce the completion of its previously announced short form prospectus offering
(the "Offering") of common shares of the Company (the "Shares") through a syndicate of agents co-led by GMP FirstEnergy and Haywood
Securities Inc. and including Macquarie Capital Markets Canada Ltd.
Pursuant to the Offering, the Company issued 70,000,000 Shares at a price of C$0.20 per share for
gross proceeds of C$14,000,000. The Company intends to use the net proceeds to fund exploration
and development of its Tishomingo Field, located in Oklahoma, U.S. and for general corporate
purposes.
Wolf Regener, President & CEO, commented:
"With the closing of this offering, which was increased by more than 25% due to strong support from existing shareholders as
well as new investors, we are moving ahead with a drilling program that will take advantage of the current low cost
environment. The location of our proposed wellsites offset some of our best performing wells, in a geologically comparable
area. We expect our drilling program to increase cash flow while at the same time proving up additional reserves.
"The preparation of our first location is almost complete, we are currently evaluating bids for a drilling rig and will select a
vendor shortly. We expect to provide a further update when we announce our third quarter results in early November."
Directors and senior officers of the Company purchased a total of 4,680,000 Shares in the Offering. Accordingly, the
Offering constituted to that extent a "related party transaction" under Multilateral Instrument 61-101 ("MI 61-101"). The
transaction is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 as neither the fair
market value of any shares issued to or the consideration paid by such persons exceeds 25% of the Company's market
capitalization. The Company did not file a material change report more than 21 days before the expected closing of the
Offering as the details of the Offering and the participation therein by related parties of the Company were not settled until
shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons.
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 use of proceeds from the Offering and
expected results. Such forward-looking information is based on management's expectations and assumptions, including that the
Company's geologic models will be validated, that indications of early results are reasonably accurate predictors of the
prospectiveness of the shale intervals, that previous exploration results are indicative of future results and success, that
expected production from future wells can be achieved as modeled, declines will match the modeling, future well production rates
will be improved over existing wells, that rates of return as modeled can be achieved, that recoveries are consistent with
management's expectations, that additional wells are actually drilled and completed, that design and performance improvements will
reduce development time and expense and improve productivity, that discoveries will prove to be economic, that anticipated results
and estimated costs will be consistent with managements' expectations, that all required permits and approvals and the necessary
labor and equipment will be obtained, provided or available, as applicable, on terms that are acceptable to the Company, when
required, that no unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays or labor or
contract disputes are encountered, that the development plans of the Company and its co-venturers will not change, that the demand
for oil and gas will be sustained, that the Company will continue to be able to access sufficient capital through financings,
credit facilities, farm-ins or other participation arrangements to maintain its projects, that funds will be available from the
Company's reserves based loan facility when required to fund planned operations, that the Company will not be adversely affected by
changing government policies and regulations, social instability or other political, economic or diplomatic developments in the
countries in which it operates and that global economic conditions will not deteriorate in a manner that has an adverse impact on
the Company's business and its ability to advance its business strategy.
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 anticipated results and estimated costs will not
be consistent with managements' expectations, that the Company's geologic and reservoir models or analysis are not validated, that
the Company will not achieve the results anticipated, 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 and development projects or capital
expenditures; the uncertainty of reserve and resource estimates and projections relating to production, costs and expenses, and
health, safety and environmental risks, including flooding and extended interruptions due to inclement or hazardous weather
conditions), the risk of commodity price and foreign exchange rate fluctuations, risks and uncertainties associated with securing
the necessary regulatory approvals and financing to proceed with continued development of the Tishomingo Field, the Company or its
subsidiaries is not able for any reason to obtain and provide the information necessary to secure required approvals or that
required regulatory approvals are otherwise not available when required, that unexpected geological results are encountered, that
completion techniques require further optimization, that production rates do not match the Company's assumptions, that very low or
no production rates are achieved, that the Company is unable to access required capital, that funds will not be available from the
Company's reserves based loan facility when required to fund planned operations, that occurrences such as those that are assumed
will not occur, do in fact occur, and those conditions that are assumed will continue or improve, do not continue or improve 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, the final prospectus for the Offering 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.
SOURCE BNK Petroleum Inc.
