======================================================================
Re: News Release - Wednesday, January 30, 2008
Bankers Petroleum Acquires 50% Interest In Kucova Heavy Oilfield
In Albania And Option To Acquire 100%
======================================================================
Field Evaluated at Over 490 MBBLS Original-Oil-in-Place
CALGARY, January 30, 2008 - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK)
is pleased to announce that it has agreed to acquire 50% of the issued
and outstanding securities of an independent private company
("Privatco") and has an option to acquire the remaining 50% interest
for an aggregate 100%. Privatco holds the exclusive right to evaluate
and redevelop the Kucova heavy oilfield located in Albania pursuant to
a Petroleum Agreement with Albpetrol Sh.A. of Albania, 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 oilfield.
The Kucova field has in excess of 490 million barrels of
original-oil-in-place that averages 17o API gravity, based on previous
reservoir reports prepared by DeGolyer and MacNaughton Canada Limited
for Privatco. Geologically, it is similar to Bankers' Patos Marinza
oilfield, consisting of multiple stacked sandstone reservoirs of
various oil gravities. Recovery to date is approximately six percent.
Once closed, Bankers will undertake an evaluation of the oilfield to
further define its remaining reserves and production potential and
ensure compliance with Canadian Security Administrators' National
Instrument 51-101.
The acquisition of the initial 50% interest in Privatco is expected to
close in February, subject to the satisfaction of certain conditions
including completion of formal documentation. The Company has until
June 30, 2008 to exercise its option to acquire the remaining 50%
interest.
"We're extremely pleased with this opportunity as we see many synergies
between Kucova and our existing Patos Marinza asset," said Richard
Wadsworth, President. "From initial review, the reservoir appears to be
very similar geologically, and we believe it has the potential to
provide additional production and reserves through secondary and
enhanced oil recovery techniques. This acquisition fits well with our
strategy of focusing on our investments in Albania."
About the Kucova Oilfield:
The Kucova oilfield is located in the South Central region of Albania,
approximately 30 kilometres northeast of the Patos Marinza field. The
field was discovered in 1928 and has had over 1,700 wells drilled,
resulting in cumulative production of 23.2 million barrels by the end
of 2006. At that time, average daily production was approximately 400
barrels.
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 and thermal recovery. The depths of the reservoir
are believed to vary from 150 metres to 1,400 metres based on available
information.
Caution Regarding Forward-looking Information
Information in this news release respecting the Company's option, the
Kucova oilfield, 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.
The transaction with Privatco is subject to certain conditions that may
or may not be satisfied within the time frame anticipated or at all.
Information on the Kucova oilfield 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
Kucova 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
financial resources. Should this transaction close but Bankers elect to
not exercise the second option, the Company would relinquish its 50%
ownership in Privatco to the vendors.
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 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 opportunities in unconventional petroleum
assets. Bankers operates and has the full rights to develop the Patos-
Marinza heavy oilfield in Albania, which is a 2.0 billion barrel
resource. It also holds interests in four 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.
- 30 -
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
AIM NOMAD:
Canaccord Adams Limited
Ryan Gaffney/ Adam Janikowski
+44 20 7050 6500
======================================================================
Copyright (c) 2008 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
======================================================================
.
![]()