Bankers Petroleum Announces Three-Year Plan

    Albanian Production to Increase to Approximately 20,000 boed by Year-End
    2010; Restructuring for U.S. Subsidiary in 2008

    CALGARY, March 25 /CNW/ - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is
pleased to introduce its three-year plan of development (the Plan) for its
Albanian assets as well as a proposed restructuring for its U.S. subsidiary
Bankers Petroleum (US) Inc.

    Albania Three-Year Strategic Plan

    In March 2008, the Company completed an Addendum to the Plan of
Development that outlined the technical, capital and production profiles for
the Patos Marinza field. Under this Addendum, Bankers plans to access
additional reserves through the application of infill vertical and horizontal
drilling, and waterflood and thermal recovery techniques. The Addendum was
submitted to Albpetrol Sh. A. and the Albanian Government and is currently
awaiting final approval.
    Regarding the recently acquired Kucova oilfield in Albania, the Company
will be completing its evaluation and will disclose details of its capital
program and reserves assessment by the end of the second quarter.
    The Plan's total capital investment is estimated to be $370.0 million and
will be primarily funded from existing working capital and future cash flow.
The Plan's objective is to achieve production target of 20,000 bopd by
December 2010.
    The Company's strategic objective is to remain focused on exploration and
production activities in Albania.

    Maximizing Patos Marinza's Potential
    The original plan of development was mainly comprised of recompleting
active wells and re-activation of suspended wells through primary cold heavy
oil production (CHOP) of previously operated wells by the state oil company,
Albpetrol Sh. A. The new Addendum to the plan of development moves beyond
primary recovery techniques, identifying methods to further access the
substantial oil reserves of the field by applying the appropriate extraction
method to each individual formation. The various technologies will be focused
to maximize the recoveries from each formation through disciplined and staged
exposure of capital and an overall 'field to formation' development plan.
While the Plan includes approximately $90.0 million for waterflood and thermal
work programs, there are no reserves recognition for these activities in the
recently announced 2007 year-end reserves report. Positive results from these
programs are expected to contribute to additional reserves recognition in 2008
and beyond.
    The Plan contemplates the following activities for the Patos Marinza
field over the next three years(1):

    Reactivations                     250 existing wells
    Vertical & horizontal infill      60 wells
    Waterflood program                50 wells - reactivation and new wells
    Cyclic Steam Stimulation          Initial eight well pilot phase in 2008
                                      Evaluation period in 2009
                                      30 well commercial expansion in 2010
    Capital Expenditure               Total: $370.0 million
                                         -  2008 - $80.0 million
                                         -  2009 - $120.0 million
                                         -  2010 - $170.0 million
    Production Target Exit Rate          -  2008 - 7,000 bopd
                                         -  2009 - 14,000 bopd
                                         -  2010 - 20,000 bopd
    (1) During this period, Bankers will continue to review additional
        requirements for investment and growth and will provide new or
        revised plans in annual work programs and budgets. Note that these
        are estimates and may change based on changing circumstances,
        knowledge and results.

    Restructuring of Bankers Petroleum (US) Inc.

    Recognizing the size of Patos Marinza and Kucova heavy oilfields in
Albania, Bankers' Board of Directors decided in its three-year plan to focus
its resources on maximizing the potential of these very important assets. With
recent success in Oklahoma, the Company determined that the timing is right
for Bankers U.S. to be restructured into a separate entity to proceed with its
own growth plans in a manner that will maximize value and preserve future
upside to all Bankers' existing shareholders. As such, the Company will
consider structuring alternatives in respect of Bankers U.S. over the next few
weeks to determine the most optimal arrangement for this restructuring and
will announce further details as soon as possible.
    A 2008 capital program of $45.0 million has been established to drill,
complete and tie-in 30 wells in the Tishomingo gasfield. This is expected to
be funded from working capital and debt secured by the US assets; Bankers is
currently evaluating several debt financing proposals.

    Caution Regarding Forward-looking Information

    Information in this news release respecting the expected future
production levels, future prices and netback, work plans, anticipated total
oil recovery of the Patos Marinza oilfield and the Tishomingo gasfield in
Oklahoma, U.S., the proposed plan of arrangement for the U.S. assets, and
potential opportunities 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.
    Exploration for oil and natural gas is a speculative business that
involves a high degree of risk. Few shale natural gas wells that are drilled
are ultimately developed commercially. There is no assurance that expenditures
made by the Company on its US properties will result in discovery of
commercial qualities of natural gas. 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; delays associated with equipment procurement, equipment failure and
the lack of suitably qualified personnel; the inherent uncertainty in
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 and well recompletions of
the past will continue and success rates will be similar to those rates
experienced for previous well recompletions/development; that further wells
taken over and recompleted will produce at rates similar to the average rate
of production achieved from wells recompleted/redeveloped 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
    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 operations update was reviewed by Richard Wadsworth, President 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 engineer with over 16 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 oilfield and has a 50% interest in the Kucova oil field. It 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. Bankers shares are traded on the
Toronto Stock Exchange and the AIM Market in London, England under the ticker
symbol BNK.

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:; Website:; AIM NOMAD: Canaccord Adams Limited, Ryan
Gaffney/Adam Janikowski, +44 20 7050 6500

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