BNK.L Regulatory News (BNK)

24 Apr 2006 14:30

Bankers Petroleum Announces Acquisition of United States Unconventional Assets Agreement Provides for Addition of Approximately 250,000 Net Acres CALGARY, April 24 /CNW/ - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) ispleased to announce that its wholly owned subsidiary, Bankers Petroleum (US)Inc., has entered into a Purchase and Sale Agreement with Vintage Petroleum,LLC for four unconventional shale gas prospects in the Northern and Centralregions of the United States. The completion of this transaction will bringBankers' total net acreage holdings in unconventional gas plays in the UnitedStates to over 500,000 net acres as well as diversify Bankers' US assets. The total consideration for the transaction is US$30 million of whichUS$10 million will be paid in cash and the remainder in approximately26 million Bankers' common shares at an ascribed price of $0.88 per share. Thefinal price is subject to pre-closing adjustments. Completion of thetransaction is subject to certain conditions, including TSX approval and finalreceipt of a prospectus qualifying the share consideration. Upon completion ofthe transaction approximately 30,000 net acres in the Palo Duro Basin will betransferred to third parties, together with an additional US$1 million cashpayment, to settle competing claims in respect of some of the acquiredacreage. "We believe this deal is a significant step in our future growth," saidRichard Wadsworth, President. "The additional acres strengthen and diversifyour land positions in areas which exhibit strong potential for shale and tightsand production. It provides us with the opportunity to be a major player inthe US unconventional resource industry." Palo Duro Basin Upon the completion of the transaction, Bankers will hold in excess of375,000 net acres in the Palo Duro Basin with the addition of the purchasedapproximately 118,000 net acres. This acreage provides Bankers with largeconsolidated blocks in what management believes is the core area for the Bendshale. In addition, it also brings further potential for secondary targets,including the Morrow, Granite Wash sands and the Morrow, Strawn, Wolfcamp, SanAndres, and Clear Fork formations. New Unconventional US Assets The new prospect lands are located in the Arkoma and Ardmore basins ofOklahoma, the Black Warrior Basin of Mississippi and Alabama and theAppalachian Basin of New York. The acquisition further diversifies Bankers'portfolio of prospects and provides a foothold in these very active basins. The Black Warrior prospect covers approximately 95,000 net acres andtargets Pennsylvanian age Pottsville tight gas sands as well as theMississippian age Floyd shale. Bankers will hold 24,000 net acres in theArkoma and Ardmore basin prospect, targeting the Caney and Woodford shales,which are Mississippian in age. The 19,000 net acres acquired in theAppalachian Basin play targets the early Ordovician age, Trenton-Black Riverlimestone-shale sequence with secondary potential in the Late Ordovician age,Utica Shale. Bankers' management believes these prospects have strong potential fornatural gas. Further details of programs, strategies and details regardingthese areas will be provided once the transaction closes, on or aboutMay 2006. Drilling Update Bankers is currently in the process of gathering data on some of thedeeper intervals in the Misener No. 1 well that lie below the primary Bendshale target, which is expected to be stimulated and tested in May. The JonesNo. 1 well is currently drilling at a depth of approximately 8,700 feet aftercoring the Wolfcamp shale. This is later than anticipated as there wasapproximately 10 days of downtime on the drilling rig due to operating issuesrelated to the reconditioning of this drilling rig. The rig has now beenrepaired and the contractor believes the rig to be in good condition with noexpectations of further problems. Appointment Bankers is pleased to announce the addition of Ms. Susan J. Soprovich asVice President, Investor Relations and Corporate Governance to its managementteam. Ms. Soprovich brings extensive knowledge in corporate communications andthe oil and gas industry through her experience in both a corporate andconsulting capacity. Most recently, she was the Director, Investor Relationsof Fording Canadian Coal Trust. Prior to that, Ms. Soprovich was employed atvarious petroleum companies including Cavell Energy, Gulf Canada andPanCanadian Petroleum. Ms. Soprovich holds a Bachelor of Commerce (Honours)degree from the University of Manitoba and is a Certified ManagementAccountant. In addition, she has served for several years on the Board of theCanadian Investor Relations Institute, Alberta Chapter, and is past ChapterPresident of the Association. About Bankers Petroleum Ltd. Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration andproduction company focused on opportunities in unconventional petroleumassets. Bankers holds interest in the Palo Duro Basin of west Texas, UnitedStates, where it is currently pursuing the exploration of Bend shale gas. Italso operates in the Patos-Marinza oilfield in Albania pursuant to a licenseagreement, producing heavy oil. Bankers shares are traded on the Toronto StockExchange and the AIM Market in London, England under the ticker symbol BNK. Caution Regarding Forward-looking Information Certain information in this news release respecting the Company and theCompany's properties constitutes forward-looking information. Such forward-looking information, including but not limited to statements withtiming of the Company's planned work program and management's belief as to thepotential of certain properties, involve known and unknown risks,uncertainties and other factors which may cause the actual results of theCompany and its operations to be materially different from estimated costs orresults expressed or implied by such forward-looking statements. Such factorsinclude, among others general risks and uncertainties associated withexploration, petroleum operations and risks associated with equipmentprocurement and equipment failure as well as those described under "RiskFactors" in the Company's Annual Information Form and in each managementdiscussion and analysis. Although the Company has attempted to take intoaccount important factors that could cause actual costs or results to differmaterially, there may be other factors that cause costs of the Company'sprogram or results not to be as anticipated, estimated or intended. There canbe no assurance that such statements will prove to be accurate as actualresults and future events could differ materially from those anticipated insuch statements. Accordingly, readers should not place undue reliance onforward-looking information. /For further information: Susan J. Soprovich, VP, Investor Relations andCorporate Governance, (403) 541-5313, Email:investorrelations(at)bankerspetroleum.com; Website: www.bankerspetroleum.com/ (BNK. BNK.WT.) ENDBANKERS PETROLEUM LIMITED