======================================================================
Bankers Petroleum Discovers Second Successful Natural Gas Well In
U.S. And Provides Update On U.S. & Albania Activities
======================================================================
Capturing Additional Upside in Albania & Proving Natural Gas in the
U.S.
CALGARY, May 10, 2007 -- Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is
pleased to provide an operational update for its United States
exploration program and activities to capture additional resources in
Albania. The Company achieved its second successful natural gas well in
the U.S. in addition to continuing the process of further development
of its assets.
"We see significant resource development potential in our two assets,"
said Richard Wadsworth, President. "This will come from accessing the
potential of the shale basins in the U.S., activities beyond primary
recovery techniques in Albania, and upstream/downstream integration
strategies. I'm confident that we will deliver results this year in the
U.S. and meet our growth plans for Albania, thus laying the groundwork
for additional value for the Company and its shareholders."
United States
In the United States, Bankers is progressing with its exploration and
evaluation programs in all four areas, moving towards first natural gas
production and a commercial development program in 2007.
In Palo Duro, Texas, the fracture stimulation of the vertical Cogdell
#64-1 well generated encouraging results of approximately 325 Mcf/d
from a Granite Wash Sand. In the second quarter, the shale interval in
this same well will be fracture stimulated and a second vertical well
will be drilled. The second well will be drilled underbalanced, using
air, and will target both the Granite Wash Sands and the Bend shale
formation to show repeatability over a larger area. Further evaluation
of larger fracture stimulations in the Granite Wash Sands in vertical
wells along with the planning of horizontal wells is underway.
"We are extremely encouraged by the production rate from such a small
stimulation on the Codgell #64-1," said Wolf Regener, President,
Bankers Petroleum (US) Inc. "Our recent results in the U.S. show that
the science is starting to pay off. We are hopeful that larger
stimulations and horizontal wells can generate higher initial
production rates as has been demonstrated in other successful tight gas
sand and shale projects."
In Oklahoma, the Company is currently drilling its first horizontal
Woodford shale well in Carter County, the Greenway #35-1H well, which
is an offset to the Nickel Hill #1-26 discovery well. The Greenway
#35-1H well is expected to be completed in the second quarter. Along
with a partner, Bankers is also acquiring a 115 square mile, 3D seismic
survey in Carter and Johnston Counties to aid in the development of its
acreage there. Bankers is also planning on drilling its second
horizontal Woodford shale well in this project in Johnston County
approximately 10 miles from the first two wells.
In Hughes County, Oklahoma, Bankers is planning on drilling a
horizontal well to test the Woodford shale by the end of the third
quarter after finishing an updated geologic/engineering study on its
results and that of other operators in the area. Recently, the Lake
Holdenville #35-1 well was fracture stimulated with disappointing
results. Bankers believes that the treatment did not effectively
stimulate the shale. However, an offsetting vertical Woodford Shale
well, approximately two and a half miles away from the #35-1, had an
initial production rate of 330 Mcf/d after stimulation, providing the
confirmation of gas productivity required to justify a follow-up
horizontal well.
In New York, Bankers is fracture stimulating and testing two existing
wells in the Trenton formation in the second quarter, the K High and B
Everhart wells. The B Everhart well initially produced at an
unstimulated flow rate of 300 Mcf/d before declining to around 15 Mcf/d
nine months later. Also in the second quarter, Bankers expects to
secure a rig to complete the drilling of three wells to the targeted
Trenton/Black River formations. Two of the wells have previously been
drilled to an intermediate casing point above the targeted intervals.
Additional geologic and geophysical work is underway for the Black
Warrior Basin Project in Mississippi and Alabama. This work will
provide information to bring this project into the stage to potentially
drill wells in 2008.
Further exploration and development activities in the United States
will be influenced by the results of all of these wells.
Albania
Bankers is expected to commence its cyclic steaming pilot project in
Albania in the third quarter of 2007. The majority of the required
equipment is in country, and the Company is in the process of
discussions with Albpetrol to take-over two well bores which meet the
technical requirements for thermal steam injection. Bankers intends to
undertake several cycles of steam, before expanding the pilot to
include newly drilled wells on a pattern for steam flooding in 2008.
The two well pilot project is expected to cost approximately $2.0
million with results expected during the fourth quarter of 2007.
Further studies and engineering to pursue potential integration,
secondary waterflood development, horizontal wells and an expanded EOR
pilot project that will be undertaken during 2008 is underway. Bankers
is looking to these initiatives as a means of significantly increasing
production and reservoir recovery in the Patos Marinza oilfield.
The Albanian government recently announced the privatization of ARMO,
which is the state owned jointstock company established in April 1999
upon separation of the former integrated state-owned monopoly.
Headquartered in Fier, ARMO is the only refiner in Albania, a key
wholesaler and one of the main retailers of refined products in the
Albanian market. ARMO's market share in the retail sector is currently
estimated at 20%. Bankers continues to review possible integration
aspects of ARMO. Integration would provide benefits as the Company
increases heavy oil production and looks to integrate enhanced recovery
techniques in the future.
Caution Regarding Forward-looking Information
Information in this news release respecting planned work programs on
the Company's US properties and anticipated results of such programs,
potential recoveries and outcomes from its plans for its Albanian
operations, and possible outcomes of the ARMO privatization 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.
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 enhanced oil recovery
projects; 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; the existence of
reserves as expected; the continued release by Albpetrol of areas and
wells required in these projects; the disposition of the ARMO asset by
the Albanian government in the assumed timeline; availability of
financing in the amounts and time frame required; the absence of
unplanned disruptions; the ability of the Company to bring production
to market; and general risks inherent in oil and gas operations. In
addition, there can be no assurance that the Company will submit a bid,
qualify or be the successful bidder in the ARMO privatization process.
Exploration for natural gas is a speculative business that involves a
high degree of risk. Few 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 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.
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 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 14 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 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 and tight gas sand 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, contact:
Susan J. Soprovich
VP, Investor Relations and Corporate Governance
Ph: (403) 513-2681
Email: investorrelations@bankerspetroleum.com
Website: www.bankerspetroleum.com
View News Release in PDF Format:
File: http://www.bankerspete.com/i/pdf/BNKSecond.pdf
54 KB, approx. 11 seconds at 56.6Kbps
======================================================================
Copyright (c) 2007 BANKERS PETROLEUM LTD. (BNK.H) All rights reserved.
For more information visit our website at http://www.bankerspete.com/
or send mailto:info@bankerspetroleum.com
======================================================================
.
![]()