Bankers Petroleum expands credit facilities

    CALGARY, Feb. 25 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company")(TSX: BNK, AIM: BNK) is pleased to announce that it has formally
entered into negotiations with the International Finance Corporation ("IFC")
(a member of the World Bank Group), and the European Bank for Reconstruction
and Development ("EBRD") for provision of a reserve-based long-term financing
of up to US$110 million to fund upcoming capital requirements and working
capital needs for the Company's Albanian projects. Subject to ongoing
discussions with EBRD/IFC, completion of all required documentation for
approval, necessary regulatory and stock exchange approvals and receipt of
final approval from each of IFC, EBRD and Bankers Board of Directors, it is
expected that this facility will be in place during the second quarter of
    The credit facility is expected to consist of two six-year revolving
facilities, aggregating US$50 million each, and two eight-year term loans,
totalling US$10 million, to be used for environmental remediation purposes.
All of the facilities are expected to be funded equally between EBRD and IFC,
and involve Bankers' wholly-owned subsidiary, Bankers Petroleum Albania Ltd.
Subject to all other conditions precedent, the US$10 million term loan is
expected to be available immediately upon preparation and finalization of an
environmental remediation action plan by Bankers, amounts under the first
US$50 million tranche of the revolving facility will be fully available when
the Brent oil price stabilizes above US$55 per barrel, 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 and subject to Toronto Stock Exchange ("TSX")
approval, Bankers has reserved for issuance sixteen million common share
purchase warrants (eight million for each of IFC and EBRD), subject to
completion of the loan documentation. When issued, each warrant will entitle
EBRD/IFC to purchase one common share of the Company at a price of $1.50 per
common share. The warrant price represents a 25% premium to the five-day
volume weighted average common share trading. The warrants will be exercisable
when the Brent oil price stabilizes above US$55 per barrel until the earlier
of, i) one year from such date, or ii) 45 days after the date on which the
Company has notified the lenders that its common shares close at or above the
exercise price for twenty consecutive trading days.
    Abby Badwi, President and CEO of Bankers stated that "this new credit
facility, in conjunction with the Company's existing US$35 million credit
facility, funds generated from operations, potential warrent exercise proceeds
and cash on hand, will provide the basis to expand its capital development
program when confidence returns to the energy sector and higher oil prices are
realized. Bankers' Albanian projects have a flexible capital expenditure
program that is currently focussed on high-impact, low-cost, maintenance
levels for the first half of 2009. Commencing in the second half of 2009,
Bankers expects to increase its activities when business conditions improve
and the IFC/EBRD revolving facility is expected to become available. In
addition, this strategic long-term investment by EBRD and IFC, as lenders and
potential equity partners, will allow the Company continued access to
competitive and sustainable financing arrangements to fund currently planned
and future growth opportunities in Albania."

    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 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
    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.

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:, Website:; 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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