29 Mar 2007 14:25
Bankers Petroleum to Receive Centillion Units for Palo Duro Basin Transaction
Units Comprising One Share and One-Half Warrant
CALGARY, March 29 /CNW/ - Bankers Petroleum Ltd. announces that Centillion Industries Ltd. ("Centillion") and its subsidiary Palo Duro Operating (US) Inc. have elected to satisfy US$4.5 million of the purchase price payable under their agreement to purchase up to a 27% interest in the Company's leasehold lands in the Palo Duro basin, by the issuance of units of Centillion, each unit comprising one share and one-half warrant. As a result, upon completion of the transaction Bankers will acquire ownership and control of 15,152,142 common shares (the "Shares") and 7,576,071 common share purchase warrants (the "Warrants") of Centillion, each warrant entitling it to acquire one additional common share of Centillion at CDN$0.50 per share on or before the date that is 24 months following closing of the transaction.
The Shares will represent 9.92% of the outstanding common shares of Centillion post-transaction. Under applicable securities legislation Bankers is also deemed to own and control the 7,576,071 common shares which may be acquired upon exercise of the Warrants. Accordingly, Bankers will be deemed to have acquired an additional 7,576,071 common shares of Centillion, which, together with the Shares, and assuming no exercise by any other holder of convertible securities of Centillion, would represent 14.18% of the common shares of Centillion that will be outstanding upon completion of the transaction.
Bankers does not presently intend to increase its shareholdings in Centillion. The transaction with Centillion and its subsidiary remains subject to conditions, which may or may not be satisfied.
A copy of the early warning report filed by Bankers in connection with this news release may be obtained by contacting Susan J. Soprovich, Vice President of Bankers, at (403) 513-2681.
Caution Regarding Forward-looking Information
Information in this news release respecting the transaction with Centillion and its subsidiary constitutes forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company. The transaction is subject to a number of conditions, including approval of the TSX Venture Exchange. There is no assurance that it will complete as planned, or at all.
About Bankers Petroleum Ltd.
Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and production company focused on opportunities in unconventional petroleum assets. Bankers holds interests in four prospects in the Northern and Central regions of the United States, where it is currently pursuing the exploration of shale gas plays. It also operates in the Patos-Marinza oilfield in Albania pursuant to a license agreement, producing heavy oil. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the ticker symbol BNK.
For further information: Susan J. Soprovich, VP, Investor Relations and Corporate Governance, (403) 513-2681, Email: investorrelations(at)bankerspetroleum.com, Website: www.bankerspetroleum.com/ (BNK)
BANKERS PETROLEUM LIMITED