Peninsula Assigns Previous Agreement with Bankers to Centillion
CALGARY, March 7 /CNW/ - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is
pleased to announce that it has entered into a purchase and sale agreement
with Palo Duro Operating (U.S.), Inc., a wholly-owned subsidiary of Centillion
Industries Inc. (Centillion, TSXV: CID.H), for the sale of up to 27% of its
approximate 375,000 net acres in the Palo Duro basin, Texas. Centillion has
guaranteed the obligations of its subsidiary under the agreement. Peninsula
Merchant Syndications Corp. assigned it rights under the previously announced
letter of understanding with the Company to Centillion. The assignment was
subject to Bankers consent which was granted upon execution of the agreement
Bankers will continue as operator of all programs on the Palo Duro lands.
The total consideration to be paid for the acreage is unchanged:
US$19.5 million, of which a minimum of US$15.0 million will be in cash.
Centillion is entitled to elect prior to closing to satisfy up to US$4.5
million of the purchase price through the issuance of securities of
Centillion, having an ascribed maximum value of CDN$0.35 per security.
Completion of the transaction is subject to certain conditions, including, but
not limited to completion of a CDN$40 million equity financing by Centillion
and approval of the TSX Venture Exchange. Subject to obtaining all necessary
approvals, the transaction is expected to close in May 2007. Bankers is
entitled to terminate the agreement and retain a non-refundable deposit if all
conditions to closing have not been fulfilled on or before May 29, 2007.
Caution Regarding Forward-looking Information
Information in this news release respecting the proposed transaction with
Centillion and planned work programs on the Company's US properties constitute
forward-looking information. Statements containing forward-looking information
express, as at the date of this news release, the Company's plans,
expectations, or beliefs as to future events or results and are believed to be
reasonable based on information currently available to the Company.
The transaction with Centillion is subject to certain conditions that may
or may not be satisfied within the time frame anticipated or at all. If
Centillion does not complete the acquisition for any reason, the Company's
work programs for which the proceeds are intended to be used may have to be
curtailed and funding sought from other sources. There is no assurance that
such funding will be available to the Company on reasonable terms or at all
and any financing could dilute the Company's interest in its properties or be
dilutive to existing shareholders. Exploration for natural gas is a
speculative business that involves a high degree of risk. 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 pipeline capacity, and availability of
the necessary equipment, personnel and financial resources. There is no
assurance that expenditures made by the Company on its US properties will
result in discovery of commercial qualities of natural gas. 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 Analyses, 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.
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 gas 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.
For further information:
For further information: Susan J. Soprovich, VP, Investor Relations and
Corporate Governance, (403) 513-2681, Email:
email@example.com, Website: www.bankerspetroleum.com