30 Jul 2008 13:00
Bankers Petroleum Notified of Changes to Albanian Fiscal Terms
Petroleum Agreements to be Amended to Eliminate Negative Impact to
Bankers
CALGARY, July 30 /CNW/ - Bankers Petroleum Ltd. was advised that the Albanian Parliament approved an amendment to the fiscal system in the hydrocarbon sector by establishing a 10% Royalty Tax to be paid by all contractors on the gross revenue of petroleum produced. Profit Tax, levied subsequent to cost recovery, will remain unchanged at 50%.
The Petroleum Agreement between Albpetrol Sh.A., the national oil company, and Bankers ensures the stability in the fiscal regime in Albania as contemplated by the Petroleum Law and provides for amendment of the Petroleum and License Agreements to eliminate any negative economic effects on the contractor if changes or amendments are made to the fiscal terms. Accordingly, the Company has been advised that the Ministry of Economy, Trade and Energy, Albpetrol and the National Agency for Natural Resources, in consultation with Bankers, will immediately undertake to implement other necessary incentive amendments to the Agreements, that will mitigate the overall economic impact to Bankers resulting from imposition of the 10% Royalty Tax.
The Ministry also confirmed receipt for final approval of Bankers' Addendum to the Plan of Development ("the Plan") for the Patos Marinza oil field. The Addendum, initially submitted by Bankers in March 2008 and approved by Albpetrol on May 26, 2008, proposed a 10% royalty to the Government and Albpetrol during the cost recovery period, reverting to a 3% - 5% royalty after cost recovery, and formed the basis for Bankers' Three-Year Strategic Plan, announced on March 25, 2008. The technical aspects of the Plan are recommended for approval and the document will be revised to reflect the new Royalty Tax as well as the measures that shall be agreed upon to eliminate the negative effects thereof. Final approval of the Plan will be deferred pending such agreement and revisions, but will not impact on activity timing. It is the Ministry's recommendations that an agreement to determine the incentive actions be finalized by August 31, 2008.
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 has a 100% interest in the Kucova oil field. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.
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; Henry Fitzgerald-O'Connor, +44 20 7050 6500; Tristone Capital Ltd., Nick Morgan, +44 20 7355 5800 (BNK)
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