3 Jul 2008 13:00
Bankers Petroleum Acquires Remaining 50% Interest in KuĤova Heavy Oil Field in Albania
Vertical Drilling Commences in Patos Marinza Field
CALGARY, July 3 /CNW/ - Bankers Petroleum Ltd. is pleased to announce that it has elected to exercise its option to acquire the remaining 50% interest in the KuĤova oil field, located in Albania, through the acquisition of the remaining 50% of the issued and outstanding securities of an independent private company, Sherwood International Petroleum Ltd. ("Sherwood"). The final closing was completed for a payment of $1.5 million.
Sherwood is now a wholly-owned subsidiary of Bankers and holds the exclusive right to evaluate and redevelop the KuĤova heavy oil field pursuant to a Petroleum Agreement with Albpetrol Sh.A., the state-owned petroleum company, and a License Agreement with the National Agency of National Resources (AKBN). The terms of the Petroleum Agreement are substantially the same as those governing Bankers' Petroleum Agreement for the Patos Marinza oil field in Albania.
Bankers is in the process of completing a work program and budget to further develop the KuĤova field, which has in excess of 490 million barrels of original-oil-in-place and has only produced 5% or 25 million barrels of the oil-in-place. Bankers' management believes that the use of modern technologies and maintenance practices will make this field an attractive candidate for further development given the low recovery of oil to date. A revitalization program planned for this opportunity would involve updating surface and downhole equipment, wellbore stimulations, recompletions and the incorporation of secondary recovery techniques, such as waterflood recovery.
An independent reserves evaluation to define the remaining reserves and production potential of the KuĤova oil field, compliant with Canadian Security Administrators' National Instrument 51-101, is expected to be completed in August 2008.
Vertical Drilling Commences in Patos Marinza
On June 21st, Bankers commenced drilling operations in Albania with the spudding of its first vertical infill well. This activity occurs as outlined in the Addendum to the Plan of Development for the Patos Marinza oil field, which calls for 110 vertical and horizontal wells to be drilled by the end of 2010. The first four wells are being drilled from the same pad, targeting Gorani and Driza sandstone formations with an anticipated total true vertical depth of approximately 1,350 meters.
Caution Regarding Forward-looking Information
Information in this news release respecting potential recoveries and outcomes from the Company's plans for its Albanian operations constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.
Information on the KuĤova oil field available to the Company has not been independently verified and may not be accurate. Exploration for oil and natural gas is a speculative business that involves a high degree of risk. There is no assurance that funding for work programs required to be conducted to maintain the rights granted under the KuĤova Petroleum and License Agreements will be available to the Company through funds from existing operations on reasonable terms. If funds are not available the Company may lose its investment. Few wells that are drilled are ultimately developed commercially. Attainment of commercial production is dependent upon a number of factors and subject to risks including, but not limited to the ability to establish economic flow rates, ultimate hydrocarbon recoveries, future transport capacity, and availability of the necessary equipment, personnel and financial resources.
Oil recovery costs and plans, as well as acquisition opportunities, are based on a number of assumptions including that success rates will be similar to those rates experienced in similar primary extraction or secondary and enhanced oil recovery projects; continued availability of the necessary equipment, personnel and financial resources to sustain the Company's plans; continued political and economic stability in Albania; the existence of reserves as expected; availability of financing in the amounts and time frame required; if Brent oil prices fall, reduced returns and a change in the economics of the project could result; the inherent uncertainty in estimation of reserves; the ability of the Company to bring production to market; and general risks inherent in oil and gas operations.
Forward-looking statements and information are based on assumptions that financing, equipment and personnel will be available when required and on reasonable terms, none of which are assured and are subject to a number of other risks and uncertainties described under "Risk Factors" in the Company's Annual Information Form and Management's Discussion and Analysis, which are available on SEDAR under the Company's profile at www.sedar.com.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
Review by Qualified Person
This release was reviewed by Abdel F. (Abby) Badwi, CEO of Bankers Petroleum Ltd., who is a "qualified person" under the rules and policies of AIM in his role with the Company and due to his training as a professional petroleum geologist (member of APEGGA) with over 39 years experience in domestic and international oil and gas operations.
About Bankers Petroleum Ltd.
Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and production company focused on developing large oil and gas reserves. In Albania, Bankers operates and has the full rights to develop the Patos Marinza heavy oil field and the KuĤova oil field. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.
The Company also holds an average 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 U.S. assets and operations will soon become a separate company, as approved at Bankers' Annual General and Special Meeting held on June 27, 2008.
For further information: Abby Badwi, Chief Executive Officer, (403) 513-2694; Doug Urch, VP, Finance and Chief Financial Officer, (403) 513-2691; Susan J. Soprovich, VP, Investor Relations and Corporate Governance, (403) 513-2681; Email: investorrelations(at)bankerspetroleum.com; Website: www.bankerspetroleum.com; AIM NOMAD: Canaccord Adams Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050 6500; AIM JOINT BROKERS: Canaccord Adams Limited, Ryan Gaffney, Adam Janikowski, +44 20 7050 6500; Tristone Capital Ltd., Nick Morgan, +44 20 7355 5800 (BNK)
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