Alabama

BWB Exploration LLC ("BWB"), a wholly owned subsidiary, holds approximately 7,000 acres of oil and gas leases which are located in the Black Warrior Basin of Mississippi and Alabama.

BNK has also entered into an Exploration Agreement with BWB 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 BWB's share of costs in an eight well test program. BNK is currently projected to incur an expenditure of up to US$10 million in the eight well program in order to earn the 50% working interest.

On October 14, 2009, the Hickman Farms 30-15 well, located in Pickens County, Alabama, was successfully drilled and production casing run to total depth targeting the Pottsville Sands. BNK performed extensive remedial cement squeeze work in an attempt to isolate the various prospective zones from non-prospective zones in the well. To date three of the intervals have been tested and has produced uneconomic quantities of burnable gas. The fourth zone in the Hickman Farms 30-15 well produced about 10 mcfpd with no water after it was fracture stimulated and was thus determined to be uneconomic. The well was plugged and abandoned in June 2010.

In June 2010, BNK spudded the WS Lee 26-12 well again targeting the Pottsville tight gas sands. The well was air drilled and the total depth of 8,011 feet was reached on July 24, 2010. Evaluation of the logs acquired indicate that there are three potential intervals to be tested.