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Re: News Releases - Wednesday, July 30, 2008
Bankers Petroleum Notified of Changes to Albanian Fiscal Terms
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Petroleum Agreements to be Amended to Eliminate Negative Impact to
Bankers
CALGARY, July 30, 2008 -- Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK)
was advised that the Albanian Parliament approved an amendment to the
fiscal system in the hydrocarbon sector by establishing a 10% Royalty
Tax to be paid by all contractors on the gross revenue of petroleum
produced. Profit Tax, levied subsequent to cost recovery, will remain
unchanged at 50%.
The Petroleum Agreement between Albpetrol Sh.A., the national oil
company, and Bankers ensures the stability in the fiscal regime in
Albania as contemplated by the Petroleum Law and provides for amendment
of the Petroleum and License Agreements to eliminate any negative
economic effects on the contractor if changes or amendments are made to
the fiscal terms. Accordingly, the Company has been advised that the
Ministry of Economy, Trade and Energy, Albpetrol and the National
Agency for Natural Resources, in consultation with Bankers, will
immediately undertake to implement other necessary incentive amendments
to the Agreements, that will mitigate the overall economic impact to
Bankers resulting from imposition of the 10% Royalty Tax.
The Ministry also confirmed receipt for final approval of Bankers'
Addendum to the Plan of Development ("the Plan") for the Patos Marinza
oil field. The Addendum, initially submitted by Bankers in March 2008
and approved by Albpetrol on May 26, 2008, proposed a 10% royalty to
the Government and Albpetrol during the cost recovery period, reverting
to a 3% - 5% royalty after cost recovery, and formed the basis for
Bankers' Three-Year Strategic Plan, announced on March 25, 2008. The
technical aspects of the Plan are recommended for approval and the
document will be revised to reflect the new Royalty Tax as well as the
measures that shall be agreed upon to eliminate the negative effects
thereof. Final approval of the Plan will be deferred pending such
agreement and revisions, but will not impact on activity timing. It is
the Ministry's recommendations that an agreement to determine the
incentive actions be finalized by August 31, 2008.
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 the
Patos-Marinza heavy oil field and has a 100% interest in the Kucova oil
field. Bankers' shares are traded on the Toronto Stock Exchange and the
AIM Market in London, England under the stock symbol BNK.
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For further information, contact:
Abby Badwi
Chief Executive Officer
(403) 513-2694
Doug Urch
VP, Finance and Chief Financial Officer
(403) 513-2691
Susan J. Soprovich
VP, Investor Relations and Corporate Governance
(403) 513-2681
Email: investorrelations@bankerspetroleum.com
Website: www.bankerspetroleum.com
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
Click here to view Complete News release in PDF:
File: http://www.bankerspete.com/i/pdf/2008-07-29_NR.pdf
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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
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