CALGARY, Dec. 3 /PRNewswire-FirstCall/ - BNK Petroleum Inc. (the Company)/(TSX: BKX) announces that it has executed a Purchase and Sale Agreement (the "Agreement") with a privately owned Delaware company (the "Purchaser"), to sell approximately 2,800 acres of oil and gas leases which is not currently a part of the Tishomingo Field development, in Carter County, Oklahoma and an estimated 86,000 acres of leases in the Black Warrior Basin of Mississippi and Alabama for US$10 million. Concurrent with this Agreement, BNK has also entered into an Exploration Agreement with the Purchaser in regard to the Black Warrior acreage whereby BNK can earn up to a 50% working interest in a portion or all of the Black Warrior acreage by drilling a series of test wells on identified prospects. The exploration program requires BNK to pay for the Purchaser's share of costs in the test wells. BNK is currently projected to incur an expenditure of up to US$10 million in order to earn the 50% working interest. The first three wells are on a drilling schedule to begin by September 30th, 2009. Failure to commence any of these wells on scheduled dates could subject BNK to liquidated damages of $500,000 for each well. The transaction is expected to close in mid December. In addition BNK has agreed to allow the Purchaser to participate for a 20% interest, at its proportionate cost, in a new shale exploration project that BNK is currently reviewing.

The Company intends to use the proceeds from the sale in the continued development of its Tishomingo Field in the Ardmore Basin, Oklahoma and for general working capital purposes.

BNK is also pleased to announce that it is now producing about 650 BOEPD net to BNK and has wells that are capable of producing, but are shut in awaiting gathering system hookup for another 150 BOEPD for a total of about 800 BOEPD net to BNK. These numbers assume a suboptimal recovery of NGL's from the temporary processing plants. One of the temporary plants only recovers about 0.6 gallons per MCF. This plant is expected to be decommissioned in the first quarter of 2009 when the Tishomingo Field is connected to the previously announced Atlas Velma Cryogenic processing plant through a wet gas gathering line. BNK along with its partner is currently completing the main gathering system to allow the tie in of the remaining wells. Due to lower oil and natural gas prices, the Company has slowed down the pace of its fracture stimulations to coincide with the parts of the gathering system coming on line. In a number of its wells, BNK has only fracture stimulated a portion of the wellbores. The remaining portion of the wells will not be stimulated until mid 2009. BNK has currently one well still drilling which offsets the Dunn 2-1H well. BNK is very pleased with the production results it has achieved so far.

About BNK Petroleum Inc.

BNK Petroleum Inc. is a California based oil and gas exploration and production company focused on finding and exploiting large oil and gas resource plays. The Company holds an average of 50% interest in the Tishomingo gas field in Oklahoma and varied interests in three other areas in the Northern and Central regions of the United States, where it is currently pursuing the exploration, development and production of shale and tight sand gas plays. The Company's shares are traded on the Toronto Stock Exchange under the stock symbol BKX.

This document contains certain forward-looking statements including statements relating to expected timing for completion of the sale of the Black Warrior acreage, the expected drilling program for the Black Warrior acreage, and expected timing for fracture stimulation of certain wellbores. These statements involve known and unknown risks, delays and uncertainties not under the company's control which may cause actual results, performance or achievements of the company to be materially different from the results, performance or expectation implied by these forward-looking statements. We believe that the expectations reflected in the forward-looking statements are reasonable based upon management's current views but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date hereof. We do not intend, and do not assume any obligation, to update conclusions, forecasts or projections that may be contained in these forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by these forward-looking statements will occur, or if they do, that any benefits may be derived from them. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of factors that may include, but are not limited to: the impact of government regulation, potential delays or changes in plans with respect to exploration and development projects, success of exploration and development activities, general industry and market conditions and other risks.

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SOURCE BNK Petroleum Inc.