BNK Petroleum Inc. has an interest in three concessions which total 600,000 net acres through its wholly owned subsidiary Saponis Investments Sp. z.o.o. BNK Petroleum Inc. has an interest in six total concessions which total 1.6 million gross acres through its previously wholly owned subsidiary Saponis Investments Sp. Z o.o. and it’s wholly owned subsidiary Indiana Investments Sp. Z o.o. The three concessions in Saponis, Starogard, Slupsk and Slawno, are located in Northern Poland and total about 720,000 gross acres. BNK began with an 80% working interest in each concession, (the other 20% is owned by a privately owned Delaware company which is now controlled by LNG Energy.

In October 2009, the Company farmed out its 80% interest in the concessions to RAG Rohöl-Aufsuchungs Aktiengesellschaft, an established oil and gas exploration and development entity based in Austria 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 BWB will pay its 20% share. RAG/Sorgenia will earn a combined 53.23% interest in Saponis and BNK’s interest will reduce to 26.67%. BNK’s 26.67% interest in Saponis equates to approximately 195,000 net acres of the Saponis Poland concessions. BNK’s current plan is to test four different targets in the Silurian, Ordovician and Cambrian shales that are located at depths ranging from 7,000 to 12,500 feet. It is anticipated that the first well, the Slawno #1 well will be spud during the third quarter of 2010. Final well engineering design for the Slawno #1 well has been completed and the partners decided to locate it on the Slawno concession. The subsequent priority will be drilling a well on the Slupsk concessions and then the Starogard concession. The preparation of the Slawno well drilling permit application has commenced and will be submitted in the 2nd quarter. The partners have authorized the shooting of two small 2D seismic lines for each selected drillsite inorder to avoid any potential faults. Amendments to the concessions have been requested to allow this additional work and extra time to complete the work on the other two concessions.

The Company’s wholly subsidiary, Indiana Investments Sp. z o.o was awarded three oil and gas concessions in the Baltic Basin of Poland in March 2010. The three concessions, Darlowo, Bytow and Trzebielino total approximately 880,000 acres net to BNK. Core analysis and geological work on these concessions have already begun. The work commitment on these concessions also require the drilling of one well on each concession block within the first 18 months from the date of grant on each concession .