TIRANA, May.16 – Bankers Petroleum Ltd. said that it has achieved its second successful natural gas well in the U.S. in addition to continuing the process of further development of its assets. “We see significant resource development potential in our two assets,” said Richard Wadsworth, President. “This will come from accessing the potential of the shale basins in the U.S., activities beyond primary recovery techniques in Albania, and upstream/downstream integration strategies. I’m confident that we will meet our growth plans for Albania, thus laying the groundwork for additional value for the Company and its shareholders.”
Albania
Bankers is expected to commence its cyclic steaming pilot project in Albania in the third quarter of 2007. The majority of the required equipment is in the country, and the Company is in the process of discussions with Albpetrol to take-over two well bores which meet the technical requirements for thermal steam injection. Bankers intends to undertake several cycles of steam, before expanding the pilot to include newly drilled wells to prepare for steam flooding in 2008. The two well pilot projects are expected to cost approximately $2.0 million with results expected during the fourth quarter of 2007.
Further studies and engineering to pursue potential integration, secondary water-flood development, horizontal wells and an expanded EOR pilot project that will be undertaken during 2008 is underway. Bankers is looking to these initiatives as a means of significantly increasing production and reservoir recovery in the Patos Marinza oilfield.
The Albanian government recently announced the privatization of ARMO, which is the state owned joint-stock company established in April 1999 upon separation of the former integrated state-owned monopoly. Headquartered in Fier, ARMO is the only refiner in Albania, a key wholesaler and one of the main retailers of refined products in the Albanian market. ARMO’s market share Bankers continues to review possible integration aspects of ARMO. Integration would provide benefits as the Company increases heavy oil production and looks to integrate enhanced recovery techniques in the future. 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 sites in the Northern and Central regions of the United States, where it is currently pursuing the exploration of shale gas and tight gas sand plays. It also operates in the Patos-Marinza oilfield in Albania pursuant to a license agreement, producing heavy oil.
