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Re: News - Friday, May 25, 2007
Bankers Petroleum Closes Centillion Transaction For Joint
Development Of Palo Duro Basin
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CALGARY, May 25, 2007 -- Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is
pleased to announce that it has closed the sale of a 27% interest in
its approximate 375,000 net acres in the Palo Duro basin, Texas, to
Palo Duro Operating (U.S.), Inc., a wholly-owned subsidiary of Palo
Duro Energy Inc. (Palo Duro Energy), formerly Centillion Industries
Inc.
The total consideration paid for the acreage is US$19.5 million, of
which US$15.0 million is in cash and the remainder in units of
Centillion, comprising one share and one-half warrant. As a result,
Bankers acquired 15,152,142 common shares and 7,576,071 common share
purchase warrants of Palo Duro Energy. Each warrant entitles Bankers to
acquire one additional common share at CDN$0.50 per share on or before
May 25, 2009.
The shares represent 9.92% of the outstanding common shares of Palo
Duro Energy. Under applicable securities legislation Bankers is also
deemed to own and control the 7,576,071 common shares which may be
acquired upon exercise of the warrants. Accordingly, Bankers is deemed
to have acquired an additional 7,576,071 common shares of Palo Duro
Energy, which, together with the shares, and assuming no exercise by
any other holder of convertible securities of Palo Duro Energy,
represents 14.18% of the outstanding common shares of Palo Duro Energy.
The cash received from the sale will be utilized to fund Bankers' 2007
U.S. capital program in the United States.
Caution Regarding Forward-looking Information
Information in this news release respecting planned work programs on
the Company's US properties and anticipated natural gas production and
timing thereof 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.
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.
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For further information, contact:
Susan J. Soprovich
VP, Investor Relations and Corporate Governance
403-513-2681
Email: investorrelations@bankerspetroleum.com
Website: www.bankerspetroleum.com
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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
Message sent on Sun May 27, 2007 at 9:42:37 AM Pacific Time
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