REG-Bankers Petroleum Limited: Government of Albania Agreement <Origin Href="QuoteRef">BNK.TO</Origin>

Big Banc SplitAnnouncement

24/02/2016 14:10

Bankers Petroleum and The Government of Albania Sign Agreement For Binding
Third-Party Audit to Resolve 2011 Tax Dispute

CALGARY, Feb. 24, 2016 /CNW/ - Bankers Petroleum Ltd. (Bankers or the Company)
(TSX: BNK, AIM: BNK) is pleased to announce that the Minister of Energy and
Industry, AKBN, and Bankers have signed a formal agreement for the appointment
of an international expert audit team to review Bankers' 2011 expenditures and
assess whether they were certifiable petroleum costs according to the Petroleum
Agreement and License Agreements. The determination of the expert will be
binding and the Albanian tax authority will recalculate Bankers tax obligations
for 2011 based upon the expert's determination. The audit is expected to
commence immediately and conclude within the second quarter. The parties have
also committed to using the expert's determination as the basis for certifying
petroleum costs in subsequent years, including calculation of Bankers tax
obligations for 2012.

As a result of the parties entering into this agreement, the international
arbitration will be suspended. Additionally, the Government of Albania and
Bankers will open a dialogue on clarifying terms in the Petroleum Agreement and
License Agreement and review the existing fiscal terms for changes that work
for both parties, subject to resolution of the cost recovery matter.

David French, President and Chief Executive Officer of Bankers said "resolving
this dispute will send a great signal that Bankers and the Government of
Albania are working together to encourage investment and development. We look
forward to reaching an appropriate outcome, and turning our attention to
continuing to manage the Patos-Marinza field for the best interest of the
Government, the environment, our employees, and the local Albanian communities
we serve."

Caution Regarding Forward-looking Information

Information in this news release respecting matters such as the expected future
production levels from wells, future prices and netback, work plans,
anticipated total oil recovery of the Patos-Marinza and Kuçova oilfields
constitute forward-looking information. Statements containing forward-looking
information express, as at the date of this news release, the Company's plans,
estimates, forecasts, projections, 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 oil is a speculative business that involves a high degree of
risk. The Company's expectations for its Albanian operations and plans are
subject to a number of risks in addition to those inherent in oil production
operations, including: that Brent oil prices could fall resulting in reduced
returns and a change in the economics of the project; availability of
financing; delays associated with equipment procurement, equipment failure and
the lack of suitably qualified personnel; the inherent uncertainty in the
estimation of reserves; exports from Albania being disrupted due to unplanned
disruptions; and changes in the political or economic environment.

Production and netback forecasts are based on a number of assumptions including
that the rate and cost of well takeovers, well reactivations and well
recompletions of the past will continue and success rates will be similar to
those rates experienced for previous well recompletions/reactivations/
development; that further wells taken over and recompleted will produce at
rates similar to the average rate of production achieved from wells
recompletions/reactivations/development in the past; continued availability of
the necessary equipment, personnel and financial resources to sustain the
Company's planned work program; continued political and economic stability in
Albania; the existence of reserves as expected; the continued release by
Albpetrol of areas and wells pursuant to the Plan of Development and Addendum;
the absence of unplanned disruptions; the ability of the Company to
successfully drill new wells and bring production to market; and general risks
inherent in oil and gas operations.

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 Analysis, 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 and forward looking statements.

Review by Qualified Person

This release was reviewed by Suneel Gupta, Executive Vice President and Chief
Operating Officer of Bankers Petroleum Ltd., who is a "qualified person" under
the rules and policies of AIM in his role with the Company and due to his
training as a professional petroleum engineer (member of APEGA) with over 20
years' experience in domestic and international oil and gas operations.

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 oilfield, has a 100% interest in the Kuçova oilfield, and a 100%
interest in Exploration Block "F". Bankers' shares are traded on the Toronto
Stock Exchange and the AIM Market in London, England under the stock symbol
BNK.

SOURCE Bankers Petroleum Ltd.

For further information: 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 Analyst, (403) 513-3428;
Email: investorrelations@bankerspetroleum.com; Website:
www.bankerspetroleum.com; AIM NOMAD: Canaccord Genuity Limited, Henry
Fitzgerald-O'Connor / Wei Loon Yap, +44 0 207 523 8000; AIM BROKER: FirstEnergy
Capital LLP, Hugh Sanderson / David van Erp, +44 0 207 448 0200



END



Copyright © 2016 PR Newswire Association, LLC. All Rights Reserved