Bankers - Palo Duro Update

14 Mar 2006 07:00

Bankers Petroleum Limited13 March 2006 BANKERS PETROLEUM LTD. ANNOUNCES PALO DURO UPDATE March 13, 2006 BNK: TSX BNK: AIM March 13, 2006, Calgary, Alberta - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK)is pleased to provide an update on the activities of its wholly owned subsidiaryBankers Petroleum (US) Inc., in the Palo Duro Basin. As previously announced inits February 16th, 2006 press release, the Company's first well of a five wellappraisal program, the Misener No. 1, reached total depth of 10,142 feet and wascased for completion and further evaluation. The preliminary calculationsundertaken by Schlumberger Limited, based solely on the suite of logs run in thewell, indicate 144 billion cubic feet of gas-in-place per section (640 acres) inthe Lower Pennsylvanian, Bend Group Interval, which is approximately 970 feetthick. The Company is also evaluating other secondary targets encountered in thewell. The cores taken in the well are currently undergoing analysis by CoreLaboratories after which it is anticipated a fracture stimulation program willbe designed and implemented. Bankers has joined a multi-company, geo-engineering study of gas shales beingundertaken by the Integrated Reservoir Solutions Division of Core LaboratoriesN.V. This project consists of the characterization and evaluation of numerousconventional cores taken from multiple, gas shale formations. Specifically, thegas shale reservoirs will be analyzed for their geological, petrophysical,geomechanical, geochemical, and production properties and will be integratedwith well logs, stimulation designs and production test information. Theseintegrated data sets and case histories from Banker's own wells as well as thedata sets from other basins should aid in understanding the critical parametersto help optimize the exploitation of its reservoirs. Bankers has committed tosupplying cores from three wells to the study. Over 28 companies have alreadyjoined the project. The triple drilling rig that the Company has contracted for one year, aspreviously announced, is rigging up on the second appraisal well, Jones #1. Thiswell will also target the Lower Pennsylvanian group of sands and shales atdepths of approximately 9,300 to 10,300 feet, as well as secondary targetsincluding the San Andres, Clear Fork, Wolfcamp, Upper Pennsylvanian, Strawn andMorrow formations. This second well is located 8 miles southeast of the MisenerNo. 1 well and the third well is expected to be drilled 10 miles southwest ofthe Misener No. 1, providing Bankers the opportunity to gather technical databroadly across the Basin. The most promising areas of the basin will be selectedfor either follow-up vertical wells to gain further technical knowledge or forpossible horizontal wells. On Behalf of the Board of Directors, "Richard Wadsworth" Richard Wadsworth, President For further information, please contact 604-685-2162 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 the estimated timing ofthe Company's planned work program involve known and unknown risks,uncertainties and other factors which may cause the actual costs and results ofthe Company and its operations to be materially different from estimated costsor results expressed or implied by such forward-looking statements. Such factorsinclude, among others, general risks associated with petroleum operations andrisks associated with equipment procurement and equipment failure. Although theCompany has attempted to take into account important factors that could causeactual costs or results to differ materially, there may be other factors thatcause costs and timing of the Company's program or results not to be asanticipated, estimated or intended. There can be no assurance that suchstatements will prove to be accurate as actual results and future events coulddiffer materially from those anticipated in such statements. Accordingly,readers should not place undue reliance on forward-looking information. This information is provided by RNS The company news service from the London Stock Exchange