In 2008, the Company, through Saponis Investments Sp. Z o.o., applied for three concessions in Poland which were awarded in June 2009. The three concessions, Starogard, Slupsk and Slawno, are located in Northern Poland and total about 730,000 gross acres. BWB holds a 20% interest and BNK initially held an 80% interest in the concessions. In October 2009, the Company farmed out its 80% interest in the concessions to RAG and Sorgenia. 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 Poland concessions.

The three concessions are located in the Baltic Basin. 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. At present BNK expects, during 2010, to drill one exploratory well on each concession which is within 18 months of each concession grant date.

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.