Bankers Export Sales Contract

27 Feb 2006 17:47

Bankers Petroleum Limited27 February 2006 Bankers Petroleum Ltd. Suite 800, 906 - 12th Ave. S. W. Calgary, Alberta, T2R 1K7 Tel: (403) 541-5346 Fax: (403) 254-5156 BANKERS PETROLEUM ANNOUNCES EXPORT SALES CONTRACT February 27, 2006 BNK: TSX BNK: AIM February 27, 2006, Calgary, Alberta - Bankers Petroleum Ltd. (TSX: BNK, AIM:BNK) (the "Company") is pleased to announce that its wholly owned subsidiarySaxon International Energy Ltd. ("Saxon") has entered into a contract with arefinery in Italy, pursuant to which Saxon has agreed to make available to therefinery two cargoes per month of approximately 3,500 to 4,000 metric tonnecrude oil (approximately 1,400 to 1,600 barrels per day) from the Patos Marinzaoilfield at prices referenced to five day average Brent price at time ofshipment. The parties have agreed to negotiate a revised pricing formula at theend of April, 2006, based on a pricing study currently being undertaken bySaxon. The initial term of the Contract ends on December 31, 2006 after which itis extended for 12-monthly periods unless terminated by either party. Dependingon the prevailing Brent price at the time of shipment, the price to Saxon couldrepresent an increase of between US$4 to US$6 per barrel over the price receivedfor crude oil sold under its existing contract with the Albanian Armo refinery.Saxon expects to continue to sell a portion of its Patos-Marinza crude oilproduction in country under its contract with Armo. On Behalf of the Board of Directors, "Richard Wadsworth" Richard Wadsworth, President For further information, please contact Investor Relations 604-685-2162 Email: investorrelations@bankerspetroleum.com Certain information in this news release constitutes forward-lookinginformation. Such forward-looking information, including but not limited tostatements with respect to expected sales of and prices for the Company's crudeoil production from Patos Marinza involve known and unknown risks, uncertaintiesand other factors which may cause the actual sales and prices results operationsto be materially different from estimated costs or results expressed or impliedby such forward-looking statements. An average Brent price range of US$50 toUS$65 was used in estimating the possible increase in the price per barrel forcrude oil sold under the new contract. Factors that could cause actual resultsto vary form those contemplated herein, include, among others, failure to agreeon a revised pricing formula, oil price volatility resulting in changes in theBrent price, general risks associated with petroleum operations, equipmentprocurement and equipment failure and transportation risks, including vesselavailability.. There can be no assurance that such statements will prove to beaccurate as actual results and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not place unduereliance on forward-looking information. Not for dissemination in the United States or for distribution to U.S. Newswire Services This information is provided by RNS The company news service from the London Stock Exchange