BNK PETROLEUM INC. ANNOUNCES $66 MILLION PRIVATE PLACEMENT

TSX ticker symbol; BKX

CAMARILLO, CA, Oct. 19 /CNW/ - BNK Petroleum Inc. (the "Company") (TSX: BKX) is pleased to announce a non-brokered Cdn.$66 million private placement, representing 26,000,000 common shares at a price of Cdn.$2.54 per share, to Quantum Partners LP, a private investment fund managed by Soros Fund Management LLC.. ("Quantum"). 

The financing is subject to, among other things, approval of the Toronto Stock Exchange.  The Company will pay fees of approximately 3% of the gross proceeds in aggregate to Macquarie Capital Markets Canada Ltd., who acted as the Company's financial advisor on the transaction and GMP Securities L.P., TD Securities Inc., Paradigm Capital Inc. and others who acted as strategic advisors to the Company.

The shares issued pursuant to the financing will be subject to a four month hold period in Canada commencing on the date of the closing.  Upon completion of the private placement Quantum will hold approximately 19.5% of the Company's issued and outstanding shares.  Closing of the financing is currently scheduled to occur on or about October 25 2010, subject to receipt of all necessary approvals.

The Company intends to use the net proceeds of the private placement for general corporate purposes, including work commitments on its European shale gas concessions. 

Caution Regarding Forward-Looking Information

Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws, including all information regarding the anticipated closing date of the financing, proceeds and the proposed use of proceeds.  Forward-looking information is based on plans and estimates of management at the date the information is provided and certain factors and assumptions of management, including that the required capital and regulatory approvals will be available to complete the financing.  Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that the necessary regulatory approvals will not be obtained in a timely manner or at all.  The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

About BNK Petroleum Inc.

BNK Petroleum Inc. is a U.S. based 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 gas properties and concessions in the United States, Poland and Germany. Additionally the Company is utilizing its technical and operational expertise to identify and acquire additional unconventional projects outside of North America. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX. 

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