Bankers
Petroleum Announces Domestic Crude Oil Sales Contract
CALGARY, Aug. 31, 2016 /CNW/ - Bankers Petroleum Ltd.
("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to
announce the signing of a conditional domestic offtake crude oil
sales agreement with Ionian Refining and Trading Co. – IRTC SH.A.
("IRTC"). The agreement will become effective upon receipt by
Bankers of the Albanian Government's approval of the Company's
proposed drilling program for the fourth quarter of 2016 and in
respect of amendments to lifting procedures between the Company and
Albpetrol Sh.A for handling of Albpetrol's share of volumes from
the Patos-Marinza oilfield.
Once effective, Bankers may sell up to 65% of its crude oil
production under the agreement pursuant to which the Company will
receive payment security in advance of crude deliveries. In
accordance with the agreement, deliveries will be made from
October 1, 2016 through to
December 31, 2017.
Pricing for crude oil sales made under the agreement is
equivalent, on a full cost basis, to the pricing obtained by
Bankers for its export sales, after accounting for reduced
transportation and terminal fees. IRTC will process the crude oil
at the domestic Fier and Ballsh refineries in Albania. The balance of Bankers' production
will continue to be sold to the export market.
Bankers is pleased to see the domestic refining market re-emerge
as an employer in the region and welcomes working with the Albanian
Government, its agencies and IRTC to see this agreement come to
fruition.
Corporate Transaction Update
Bankers and Geo-Jade Petroleum Corporation remain committed to
completing the corporate transaction pursuant to an arrangement
agreement dated March 19, 2016. The
transaction is expected to close before September 30, 2016 and remains subject to the
regulatory approval of the Chinese State Administration of Foreign
Exchange. Following successful completion of the transaction,
Bankers Shares will be delisted from the Toronto Stock Exchange and
the AIM market of the London Stock Exchange.
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 and Eastern
Europe. In Albania, Bankers
operates and has the full rights to develop the Patos-Marinza heavy
oilfield, has a 100% interest in the Kuçova oilfield, and a 100%
interest in Exploration Block "F". In 2015 Bankers acquired an 85%
interest in the rights to explore the Püspökladány Block concession
within the Pannonian Basin located in north eastern Hungary. The Bankers Shares are traded on the
TSX and the AIM Market in London,
England under the stock symbol BNK.
Caution Regarding
Forward-looking Information
Certain information set forth in this
press release, including information and statements which may
contain words such as "could", "plans", "intends" "should",
"anticipate", "expects", "will", "propose", "opportunity",
"future", "continue", and similar expressions and statements
relating to matters that are not historical facts, contain
forward-looking statements, including but not limited to statements
regarding: the crude oil sales agreement, and the timing of receipt
of required Albania government,
regulatory approvals and the anticipated timing of closing of the
corporate transaction. By their nature, forward-looking statements
are subject to numerous risks and uncertainties, some of which are
beyond Bankers' control. The foregoing list is not exhaustive.
Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. The actual
results, performance or achievement of Bankers could differ
materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
benefits that Bankers will derive therefrom. Bankers disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
David French, President and Chief
Executive Officer, (403) 513-6930; Doug
Urch, Executive VP, Finance and Chief Financial Officer,
(403) 513-2691; Laura Bechtel,
Investor Relations and Corporate Communications Specialist, (403)
513-3428; Email: investorrelations@bankerspetroleum.com, Website:
www.bankerspetroleum.com; AIM NOMAD: Canaccord Genuity Limited,
Henry Fitzgerald-O'Connor, +44 0 207
523 8000; AIM BROKER AND FINANCIAL ADVISOR: FirstEnergy Capital
LLP, Hugh Sanderson / David van Erp, +44 0 207 448 0200