Bankers Petroleum finalizes US$110 million debt financing



    CALGARY, May 11 /CNW/ - Further to the announcement made on February 25,
2009 regarding expanding credit facilities, Bankers Petroleum Ltd. ("Bankers"
or the "Company") (TSX: BNK, AIM: BNK) is pleased to announce that it has
finalized loan agreements with the International Finance Corporation ("IFC"),
a member of the World Bank Group, and the European Bank for Reconstruction and
Development ("EBRD") for the provision of reserve-based long-term financing of
up to US$110 million to fund capital requirements and working capital needs
for the Company's projects in Albania.
    The credit facilities consist of two six-year revolving facilities,
aggregating US$50 million each to be used for the development of the Patos
Marinza oil field and two eight-year term loans, aggregating to US$10 million,
to fund environmental remediation of the oil field. All of the facilities will
be funded equally between EBRD and IFC. Subject to fulfilling all other
conditions precedent, the US$10 million term loan is expected to be available
immediately, amounts under the first US$50 million tranche of the revolving
facility will be available when the Brent oil price stabilizes above US$55 per
barrel (45 consecutive days), and the second US$50 million tranche is subject
to mutual agreement among Bankers, EBRD and IFC when Bankers' production
exceeds 10,000 bopd and the Brent oil price stabilizes above US$62 per barrel
unless another suitable oil price threshold is agreed among Bankers and
EBRD/IFC.
    As part of the facility, Bankers has issued 16 million common share
purchase warrants (8 million for each of IFC and EBRD), each warrant will
entitle EBRD/IFC to purchase one common share of the Company at a price of
$1.50 per common share which was priced at a 25% premium to market when this
transaction was announced on February 25, 2009. The warrants will be
exercisable when the Brent oil price stabilizes for 10 consecutive trading
days above US$55 per barrel and until the earlier of, 1) one year from such
date, or 2) 45 days after the date on which the Company has notified the
lenders that its common shares have closed at or above the exercise price for
20 consecutive trading days.
    Abby Badwi, President and CEO of Bankers stated that "this $110 million
debt financing is more than just a credit facility; it's a strategic
investment with two influential global organizations who have significant
presence and initiatives in Albania. Their financial support at this time of
tight credit markets is vital to carrying out a large development project at
the Patos Marinza oil field and we particularly appreciate their expertise,
and efforts to involve other stakeholders, in tackling the environmental
clean-up challenges ahead of us. In addition, this sizable long-term
investment will allow the Company continued access to competitive and
sustainable financing arrangements to fund currently planned and future growth
opportunities in Albania."
    "This project is a good example of how investing in the private sector
can lead to tangible benefits for people on the ground," said Somit Varma,
IFC's Global Head for Oil, Gas, Mining, and Chemicals. "While IFC provides
financing to help improve recovery rates and accelerate domestic oil
production, we also help the company to contribute to environmental
remediation initiatives aimed at improving living conditions in the
surrounding area."
    "With this project, the EBRD is providing much-needed long-term funding
to support private investments in the Albanian oil sector. By investing to
modernise in Bankers Petroleum's operations, the Bank is helping to revamp the
oil industry in Albania, by fostering further privatisation and helping set
high standards of environmental management", said Paul Shapiro, the EBRD
Operations Leader for the Project. The on-shore oil deposits are an important
source of public revenue and energy security for Albania which can now look
forward to more sustainable and efficient development further explained Kevin
Bortz, Director EBRD Natural Resources Team.

    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 Kuçova 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 well 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 Kuçova heavy oil fields. Bankers' shares are traded on the
Toronto Stock Exchange and the AIM Market in London, England under the stock
symbol BNK.



    International Finance Corporation - World Bank Group

    IFC Supports Modernization of Albania's Oil and Gas Industry and
    Sustainable Environmental Practices

    Washington, D.C./Tirana, Albania, May 11, 2009 - IFC, a member of the
World Bank Group, has agreed to support the further privatization of the Patos
Marinza oilfield in southern Albania to help revive an outmoded industry and
promote the reduction of pollution in the area.
    IFC has approved a US$50 million loan plus a special-purpose
environmental-term loan of US$5 million to Bankers Petroleum Ltd, a Canadian
oil and gas company. IFC may also make an equity investment of up to 12
million Canadian dollars. The European Bank for Reconstruction and Development
(EBRD) is providing equal amounts.
    Bankers Petroleum has been operating a small portion of the Patos Marinza
oilfield since 2004. The current expansion of Bankers' operation will
modernize the oilfield, transferring specialized technical know-how and
experience to a largely local workforce. This will contribute revenues to the
Albanian government and help promote much-needed foreign direct investment in
the country's hydrocarbon sector.
    "IFC's financial support at this time of tight credit markets is vital to
carrying out a large development project at Patos Marinza," said Abby Badwi,
CEO of Bankers Petroleum. "We particularly appreciate their expertise in
helping us to involve other stakeholders in tackling the significant
environmental remediation needs in the oilfield. In addition, this sizable
long-term investment will allow our company continued access to competitive
and sustainable financing arrangements to fund currently planned and future
growth opportunities in Albania."
    Patos Marinza is severely polluted following decades of ownership by the
state-owned operator Albpetrol. Bankers will clean up existing wells taken
over from Albpetrol and help reduce pollution and oilfield-contamination risks
as they expand their activities in the area.
    "This project is a good example of how investing in the private sector
can lead to tangible benefits for people on the ground," said Somit Varma,
IFC's Global Head for Oil, Gas, Mining, and Chemicals. "While IFC provides
financing to help improve recovery rates and accelerate domestic oil
production, we also help the company to contribute to environmental
remediation initiatives aimed at improving living conditions in the
surrounding area."
    The United Nations Development Program has classified the Patos Marinza
area as one of Albania's pollution hotspots. As the clean-up takes a wider
effort involving many more stakeholders than Bankers alone, IFC and EBRD have
helped establish a multi-stakeholder working group to formulate environmental
and social strategies and initiatives. IFC has engaged with Albanian
ministries to secure their support and leadership on this initiative, as well
as with the European Union to align ongoing initiatives.

    About IFC

    IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic growth
in developing countries by supporting private sector development, mobilizing
private capital, and providing advisory and risk mitigation services to
businesses and governments. Our new investments totaled $16.2 billion in
fiscal 2008, a 34 percent increase over the previous year. For more
information, visit www.ifc.org.





For further information:

For further information: International Finance Corporation: In
Washington, D.C., Hannfried von Hindenburg, (202) 458-5613, E-mail:
hvonhindenburg@ifc.org; In Belgrade, Slobodan Brkic, +381 11 3023 750, E-mail:
sbrkic@ifc.org; Bankers Petroleum Ltd.: 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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