Bankers Petroleum announces $40 million bought-deal financing



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/
    

    CALGARY, April 16 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK, AIM: BNK) today announced it has entered into an
agreement with a syndicate of underwriters co-led by Canaccord Capital
Corporation and Thomas Weisel Partners Canada Inc. and includes Macquarie
Capital Markets Canada Ltd., BMO Nesbitt Burns Inc., Genuity Capital Markets,
Tristone Capital Inc. and Raymond James Ltd. (together the "Underwriters" or
"Syndicate"), under which the members of the Syndicate have agreed to
purchase, on a bought deal basis, 22,858,000 common shares ("Common Shares")
of the Company at Cdn$1.75 per Common Share (the "Offering") to raise gross
proceeds of Cdn$40,001,500. Closing of the Offering, which is subject to
customary conditions and regulatory approvals, including approval of the
Toronto Stock Exchange and the AIM Market of the London Stock Exchange, is
expected to occur on or about May 7, 2009. Bankers has also granted the
Underwriters an over-allotment option to purchase, on the same terms, up to an
additional 2,285,800 Common Shares. This option is exercisable, in whole or in
part, by the underwriters, in their sole discretion, at any time up to 30 days
after closing. The maximum gross proceeds raised under the Offering will be
approximately Cdn$44 million, should the over-allotment option be exercised in
full.
    The proceeds of the Offering will be used for Bankers production and
development activities at its Patos Marinza and Kucova oil fields in Albania
and for general corporate purposes.
    Abby Badwi President and CEO of Bankers commented, "This equity financing
together with our cash, cash from operations, existing US$35 million credit
facility and our previously announced US$110 million additional debt financing
initiative with the International Finance Corporation and the European Bank
for Reconstruction and Development, which is expected to close next month,
will position the Company to confidently proceed with minimal balance sheet
risk, in this low oil price environment, with an accelerated $60 million
capital program for 2009 and ensure timely execution of our plan of
development for the Patos Marinza oil field."
    The Common Shares to be issued under the Offering will be offered: (a) by
way of a short form prospectus to be filed in Alberta, British Columbia,
Ontario and such other Canadian provinces or territories as the syndicate and
the Company may agree; (b) in the United States on a private placement basis
pursuant to exemptions from the registration and prospectus requirements of
the United States Securities Act of 1933; and (c) in Europe and other eligible
foreign jurisdictions in accordance with applicable local securities
legislation and regulations such that no prospectus, registration statement or
similar document is required to be filed in any such jurisdiction.

    Caution Regarding Forward-looking Information

    Information in this news release respecting matters such as the expected
future production levels from wells, future prices and netback, work plans,
anticipated total oil recovery of the Patos Marinza and Kucova oil fields
constitute forward-looking information. Statements containing forward-looking
information express, as at the date of this news release, the Company's plans,
estimates, forecasts, projections, expectations, or beliefs as to future
events or results and are believed to be reasonable based on information
currently available to the Company.
    Exploration for oil is a speculative business that involves a high degree
of risk. The Company's expectations for its Albanian operations and plans are
subject to a number of risks in addition to those inherent in oil production
operations, including: that Brent oil prices could fall resulting in reduced
returns and a change in the economics of the project; availability of
financing; delays associated with equipment procurement, equipment failure and
the lack of suitably qualified personnel; the inherent uncertainty in the
estimation of reserves; exports from Albania being disrupted due to unplanned
disruptions; and changes in the political or economic environment.
    Production and netback forecasts are based on a number of assumptions
including that the rate and cost of well takeovers, well reactivations and
well recompletions of the past will continue and success rates will be similar
to those rates experienced for previous well
recompletions/reactivations/development; that further wells taken over and
recompleted will produce at rates similar to the average rate of production
achieved from wells recompletions/reactivations/development in the past;
continued availability of the necessary equipment, personnel and financial
resources to sustain the Company's planned work program; continued political
and economic stability in Albania; approval of the Addendum to the Plan of
Development; the existence of reserves as expected; the continued release by
Albpetrol of areas and wells pursuant to the Plan of Development and Addendum;
the absence of unplanned disruptions; the ability of the Company to
successfully drill new wells and bring production to market; and general risks
inherent in oil and gas operations.
    Forward-looking statements and information are based on assumptions that
financing, equipment and personnel will be available when required and on
reasonable terms, none of which are assured and are subject to a number of
other risks and uncertainties described under "Risk Factors" in the Company's
Annual Information Form and Management's Discussion and Analysis, which are
available on SEDAR under the Company's profile at www.sedar.com.
    There can be no assurance that forward-looking statements will prove to
be accurate. Actual results and future events could differ materially from
those anticipated in such statements. Readers should not place undue reliance
on forward-looking information and forward looking statements.

    About Bankers Petroleum Ltd.

    Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and
production company focused on developing large oil and gas reserves. In
Albania, Bankers operates and has the full rights to develop both the Patos
Marinza and the Kucova heavy oil fields. Bankers' shares are traded on the
Toronto Stock Exchange and the AIM Market in London, England under the stock
symbol BNK.





For further information:

For further information: Abby Badwi, President and Chief Executive
Officer, (403) 513-2694; Doug Urch, VP, Finance and Chief Financial Officer,
(403) 513-2691; Email: investorrelations@bankerspetroleum.com; Website:
www.bankerspetroleum.com; AIM NOMAD: Canaccord Adams Limited, Ryan
Gaffney/Henry Fitzgerald-O'Connor, +44 20 7050 6500; AIM JOINT BROKERS:
Canaccord Adams Limited, Ryan Gaffney/Henry Fitzgerald-O'Connor, +44 20 7050
6500; Tristone Capital Ltd., Nick Morgan, +44 20 7355 5800

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