Vertical Drilling Commences in Patos Marinza Field
CALGARY, July 3 /CNW/ - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is
pleased to announce that it has elected to exercise its option to acquire the
remaining 50% interest in the Kuçova oil field, located in Albania, through
the acquisition of the remaining 50% of the issued and outstanding securities
of an independent private company, Sherwood International Petroleum Ltd.
("Sherwood"). The final closing was completed for a payment of $1.5 million.
Sherwood is now a wholly-owned subsidiary of Bankers and holds the
exclusive right to evaluate and redevelop the Kuçova heavy oil field pursuant
to a Petroleum Agreement with Albpetrol Sh.A., the state-owned petroleum
company, and a License Agreement with the National Agency of National
Resources (AKBN). The terms of the Petroleum Agreement are substantially the
same as those governing Bankers' Petroleum Agreement for the Patos Marinza oil
field in Albania.
Bankers is in the process of completing a work program and budget to
further develop the Kuçova field, which has in excess of 490 million barrels
of original-oil-in-place and has only produced 5% or 25 million barrels of the
oil-in-place. Bankers' management believes that the use of modern technologies
and maintenance practices will make this field an attractive candidate for
further development given the low recovery of oil to date. A revitalization
program planned for this opportunity would involve updating surface and
downhole equipment, wellbore stimulations, recompletions and the incorporation
of secondary recovery techniques, such as waterflood recovery.
An independent reserves evaluation to define the remaining reserves and
production potential of the Kuçova oil field, compliant with Canadian Security
Administrators' National Instrument 51-101, is expected to be completed in
Vertical Drilling Commences in Patos Marinza
On June 21st, Bankers commenced drilling operations in Albania with the
spudding of its first vertical infill well. This activity occurs as outlined
in the Addendum to the Plan of Development for the Patos Marinza oil field,
which calls for 110 vertical and horizontal wells to be drilled by the end of
2010. The first four wells are being drilled from the same pad, targeting
Gorani and Driza sandstone formations with an anticipated total true vertical
depth of approximately 1,350 meters.
Caution Regarding Forward-looking Information
Information in this news release respecting potential recoveries and
outcomes from the Company's plans for its Albanian operations 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.
Information on the Kuçova oil field available to the Company has not been
independently verified and may not be accurate. Exploration for oil and
natural gas is a speculative business that involves a high degree of risk.
There is no assurance that funding for work programs required to be conducted
to maintain the rights granted under the Kuçova Petroleum and License
Agreements will be available to the Company through funds from existing
operations on reasonable terms. If funds are not available the Company may
lose its investment. Few wells that are drilled are ultimately developed
commercially. Attainment of commercial production is dependent upon a number
of factors and subject to risks including, but not limited to the ability to
establish economic flow rates, ultimate hydrocarbon recoveries, future
transport capacity, and availability of the necessary equipment, personnel and
Oil recovery costs and plans, as well as acquisition opportunities, are
based on a number of assumptions including that success rates will be similar
to those rates experienced in similar primary extraction or secondary and
enhanced oil recovery projects; continued availability of the necessary
equipment, personnel and financial resources to sustain the Company's plans;
continued political and economic stability in Albania; the existence of
reserves as expected; availability of financing in the amounts and time frame
required; if Brent oil prices fall, reduced returns and a change in the
economics of the project could result; the inherent uncertainty in estimation
of reserves; the ability of the Company to 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.
Review by Qualified Person
This release was reviewed by Abdel F. (Abby) Badwi, CEO of Bankers
Petroleum Ltd., who is a "qualified person" under the rules and policies of
AIM in his role with the Company and due to his training as a professional
petroleum geologist (member of APEGGA) with over 39 years experience in
domestic and international oil and gas operations.
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 the Patos Marinza
heavy oil field and the Kuçova oil field. Bankers' shares are traded on the
Toronto Stock Exchange and the AIM Market in London, England under the stock
The Company also holds an average 50% interest in the Tishomingo gas
field in Oklahoma and varied interests in three other 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. The
U.S. assets and operations will soon become a separate company, as approved at
Bankers' Annual General and Special Meeting held on June 27, 2008.
For further information:
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: email@example.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, Adam Janikowski, +44 20 7050 6500; Tristone
Capital Ltd., Nick Morgan, +44 20 7355 5800