Private Placement and Option Grant
CALGARY, Nov. 2 /CNW/ - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is
pleased to announce the appointment of Abdel F. (Abby) Badwi in the role of
Strategic Advisor, Doug Urch as Financial Advisor and Ian McMurtrie as
Technical Advisor effective immediately.
Mr. Badwi will be appointed to the Board of Directors of Bankers upon
completion of a private placement by the new appointees and has agreed to
assume the position of Chief Executive Officer of Bankers on February 1, 2008.
Richard Wadsworth will continue as President and will become Chief Operating
Officer at that time. Mr. Badwi was President and CEO of Rally Energy Corp.,
an oil and gas exploration, development and production company listed on the
TSX, until its sale in September 2007. Mr. Urch was Vice President, Finance
and CFO and Mr. McMurtrie was Vice President, Exploration, of Rally Energy
Messrs. Badwi, Urch and McMurtrie have agreed to purchase, on a
non-brokered private placement basis, an aggregate of 4.4 million units of the
Company, at a price of $0.50 per unit. The $2.2 million in proceeds from the
placement will be added to the Company's working capital. Each unit will
comprise one common share of the Company and one non-transferrable share
purchase warrant, each warrant entitling the holder, subject to certain
conditions, to acquire on exercise one additional common share of the Company,
at a price of $1.00 for a period of three years from the date of issue. The
private placement is subject to TSX approval and is expected to close prior to
the end of November.
In connection with the appointments the Company has granted the
appointees an aggregate of 4.4 million stock options exercisable for a period
of five years at $0.58 per share. The options will be subject to deferred
vesting such that one-third of the options will vest and become exercisable on
the first anniversary date of appointment and one-third on each of the second
and third anniversary dates.
"We are extremely pleased that Abby and his team have decided to join us
at Bankers," said Bob Cross, Chairman. "Abby, Doug and Ian were instrumental
in substantially growing Rally Energy's reserves, production and cash flow in
the Issaran oilfield in Egypt over a short two year period, and our Patos
Marinza oilfield has many similarities to that field. They bring a wealth of
experience in all aspects of heavy oil operations, including enhanced oil
recovery technologies, which will compliment the proven capabilities of the
team that Richard Wadsworth has assembled in Albania. We look forward to our
next phase of growth."
Abdel F. (Abby) BADWI, P. Geol.
Mr. Badwi is an international energy executive and professional geologist
with more than 35 years experience in the exploration, development and
production of oil and gas fields in North America, South America, Asia and the
Middle East. From 2005 until September 2007, he was President and CEO of Rally
Energy Corp., an oil and gas company with operations in Egypt, Pakistan and
The management team of Rally Energy Corp., lead by Mr. Badwi and
including Messrs Urch and McMurtrie, was instrumental in growing Rally's
reserves from approximately nine million BOE to approximately 104 million BOE
and production from 2,000 boepd to 8,000 boepd with an associated substantial
increase in cash from operations in a short two-year period. Rally's principal
area of operations was Egypt, where it had a 100% operating interest the
Issaran heavy oil field.
Mr. Badwi was also previously President of Corrundum Energy Ltd., a
private company providing advisory services and investments in oil and gas
ventures, and served as President and CEO of Geodyne Energy and President and
Chief Operating Officer of Carmanah Resources Ltd., a TSX Venture Exchange
company with oil holdings in Canada, Indonesia and Venezuela. Mr. Badwi has
been an officer and director of several Canadian public and private companies
and is currently a director of Gastar Exploration Ltd., Sustainable Energy
Technologies Ltd., Sinchao Metals Corp., Fairmount Energy Inc., ArPetrol Inc.
(a private oil and gas company with activities in Argentina) and Rally Energy
Corp. He is 61 years of age.
Upon completion of the private placement and subsequent employment to the
Board, Mr. Badwi will hold two million common shares, two million share
purchase warrants of the Company and two million stock options
Doug Urch, B. Comm., CMA
Mr. Urch has over 25 years of oil and gas industry experience. From
September 2000, he was Vice President, Finance and Chief Financial Officer of
Rally Energy Corp. and its subsidiaries. Prior to this time, Mr. Urch provided
financial management services for a variety of public and private companies.
He was Chief Financial Officer, Controller and Corporate Secretary of
Barrington Petroleum Ltd. from 1991 to 1993 and Controller at Ryerson Oil and
Gas Limited from 1983 to 1991. He is currently a Director and President of
Perpetual Ventures Inc. (a private financial management consulting company).
Ian McMurtrie, P. Geol.
Mr. McMurtrie was Vice President, Exploration of Rally Energy Corp. since
July 2004 and provided advisory services to that company since late 2003.
Prior to advising Rally Energy Corp. he was President of Cawdor Investments
Ltd., a private company managing oil and gas royalties and providing technical
oil and gas consulting services to public and private companies. Mr. McMurtrie
commenced his exploration career with Texaco Exploration Canada Ltd. He has
been directly involved in the discovery and development of numerous oil and
gas pools throughout North America for such companies as Czar Resources Ltd.,
United Rayore Gas Ltd., and Raptor Capital Corporation. Mr. McMurtrie has
extensive expertise in the development of oil pools using innovative drilling
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 holds interests in four prospects in the Northern and Central
regions of the United States, where it is currently pursuing the exploration
of shale and tight gas sand plays. It also operates in the Patos-Marinza
oilfield in Albania pursuant to a license agreement, producing heavy oil.
Bankers shares are traded on the Toronto Stock Exchange and the AIM Market in
London, England under the ticker symbol BNK.
Caution Regarding Forward-looking Information
Information in this news release respecting the planned assumption of CEO
responsibilities by Mr. Badwi in February, 2008 constitutes 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. Contracts for personal services may be terminated or become incapable
of being performed as a result of a variety of events or circumstances. While
the company is not aware of any event or circumstance that would preclude Mr.
Badwi from assuming CEO responsibilities as planned, there is no assurance
that an intervening event or circumstance will not occur.
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.
For further information:
For further information: Susan J. Soprovich, VP, Investor Relations and
Corporate Governance, Ph: (403) 513-2681, Email:
firstname.lastname@example.org, Website: www.bankerspetroleum.com; AIM
NOMAD: Ryan Gaffney, +44 20 7050 6777; Adam Janikowski, +44 20 7050 6746