Bankers - Drilling Permits

5 Dec 2005 13:00

Bankers Petroleum Limited05 December 2005 BANKERS PETROLEUM LTD. ANNOUNCES DRILLING PERMITS AND RIG FOR PALO DURO BASIN BNK: TSX BNK: AIM December 5, 2005, Calgary, Alberta - Bankers Petroleum Ltd. (the "Company")(TSX: BNK, AIM: BNK) is pleased to announce that the Company, through its whollyowned subsidiary Bankers Petroleum (US) Inc. as operator, has obtained the firsttwo drilling permits for its Palo Duro Basin project from the RailroadCommission of Texas. The Misener #1 permit is for a vertical well with a totaldepth of 10,500 feet, to be located approximately 4.5 miles northeast ofFloydada, Floyd County. The Jones #1 permit is for a vertical well with a totaldepth of 11,000 feet, to be located approximately 2.5 miles west of the town ofDougherty, in the southeast corner of Floyd County. The Company is also pleased to announce the signing of a one-well 60-daycontract for a double rig which is expected to be available to the Companywithin the next few weeks. This is in addition to the Company's existing 1-yearcontract on the previously announced triple drilling rig which is currentlyundergoing re-commissioning and is expected to be mobilized to its firstlocation in late December 2005. The Company has acquired the rights to explore and develop approximately 260,000net acres in the Palo Duro Basin, an area that is currently experiencing aresurgence of exploratory shale gas drilling. These two wells will be the firstof five in the Company's proposed 2006 exploration drilling program to testsubsurface structures for the presence of hydrocarbons in primary shale targetsand other secondary targets. About Bankers Petroleum Ltd. Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration andproduction company with significant exploration and development opportunities inthe Palo Duro Basin of west Texas and a 100% working interest in thePatos-Marinza oilfield in Albania. The Company commenced operations in the oiland gas sector in July 2004 and has raised approximately US$50 million sincethat time. On Behalf of the Board of Directors, "Richard Wadsworth" Richard Wadsworth, President For further information, please contact Investor Relations 604-685-2162Email: investorrelations@bankerspetroleum.com The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this news release. Certain information respecting the Company and the Company's propertiesconstitutes forward-looking information. Such forward-looking information,including but not limited to statements with respect to anticipated rates ofproduction, the estimated costs and timing of the Company's planned work programand reserves determination involve known and unknown risks, uncertainties andother factors which may cause the actual costs and results of the Company andits operations to be materially different from estimated costs or resultsexpressed or implied by such forward-looking statements. Such factors include,among others, risks related to international operations, general risksassociated with petroleum operations and risks associated with equipmentprocurement and equipment failure. Although the Company has attempted to takeinto account important factors that could cause actual costs or results todiffer materially, there may be other factors that cause costs of the Company'sprogram or results not to be as anticipated, estimated or intended. There can beno assurance that such statements will prove to be accurate as actual resultsand future events could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance onforward-looking information. This information is provided by RNS The company news service from the London Stock Exchange