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Bankers Petroleum Partners With Centillion For Palo Duro Basin
Exploration Program
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Peninsula Assigns Previous Agreement with Bankers to Centillion
CALGARY, March 7, 2007 -- 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 with Centillion.
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, 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
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