Private Placement

31 Jan 2008 13:00

Bankers Petroleum announces CDN$60 million private placement

CALGARY, Jan. 31 /CNW/ - Bankers Petroleum Ltd. is pleased to announce a non-brokered CDN$60.0 million private placement, representing 66,666,666 common shares of the Company, at a price of CDN$0.90 per share (a 17% premium to the January 30, 2008, TSX market closing price). Sprott Asset Management ("Sprott") will subscribe for 55,555,555 common shares for gross proceeds of CDN$50.0 million and Blackrock Investment Management (UK) ("Blackrock") will subscribe for 11,111,111 common shares for gross proceeds of CDN$10.0 million. Subsequent to completion of the private placement, Sprott and Blackrock will hold 15.2% and 13.7%, respectively, of the Company's issued and outstanding common shares.

The financing, scheduled to close on or about February 5, 2008, is subject to regulatory approval and completion of definitive documentation. Bankers will pay a financial advisory fee in cash as allowable under Toronto Stock Exchange policies.

Net proceeds of $58.7 million will be used to fund the Corporation's exploration and development programs in Albania and the United States, the recently announced Albanian acquisition, and for general corporate purposes.

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 operates and has the full rights to develop the Patos-Marinza heavy oilfield in Albania, which is a 2.0 billion barrel resource. It also holds interests in four areas in the Northern and Central regions of the United States, where it is currently pursuing the exploration, development and production of shale and tight sand gas plays. Bankers shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the ticker 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, Adam Janikowski, +44 20 7050 6500 (BNK.)