16th Apr 2009 13:23
Attention Business Editors:Bankers Petroleum announces $40 million bought-deal financing << /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ >>
CALGARY, April 16 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") today announced it has entered into an agreement with a syndicate of underwriters co-led by Canaccord Capital Corporation and Thomas Weisel Partners Canada Inc. and includes Macquarie Capital Markets Canada Ltd., BMO Nesbitt Burns Inc., Genuity Capital Markets, Tristone Capital Inc. and Raymond James Ltd. (together the "Underwriters" or "Syndicate"), under which the members of the Syndicate have agreed to purchase, on a bought deal basis, 22,858,000 common shares ("Common Shares") of the Company at Cdn$1.75 per Common Share (the "Offering") to raise gross proceeds of Cdn$40,001,500. Closing of the Offering, which is subject to customary conditions and regulatory approvals, including approval of the Toronto Stock Exchange and the AIM Market of the London Stock Exchange, is expected to occur on or about May 7, 2009. Bankers has also granted the Underwriters an over-allotment option to purchase, on the same terms, up to an additional 2,285,800 Common Shares. This option is exercisable, in whole or in part, by the underwriters, in their sole discretion, at any time up to 30 days after closing. The maximum gross proceeds raised under the Offering will be approximately Cdn$44 million, should the over-allotment option be exercised in full.
The proceeds of the Offering will be used for Bankers production and development activities at its Patos Marinza and Kucova oil fields in Albania and for general corporate purposes.
Abby Badwi President and CEO of Bankers commented, "This equity financing together with our cash, cash from operations, existing US$35 million credit facility and our previously announced US$110 million additional debt financing initiative with the International Finance Corporation and the European Bank for Reconstruction and Development, which is expected to close next month, will position the Company to confidently proceed with minimal balance sheet risk, in this low oil price environment, with an accelerated $60 million capital program for 2009 and ensure timely execution of our plan of development for the Patos Marinza oil field."
The Common Shares to be issued under the Offering will be offered: (a) by way of a short form prospectus to be filed in Alberta, British Columbia, Ontario and such other Canadian provinces or territories as the syndicate and the Company may agree; (b) in the United States on a private placement basis pursuant to exemptions from the registration and prospectus requirements of the United States Securities Act of 1933; and (c) in Europe and other eligible foreign jurisdictions in accordance with applicable local securities legislation and regulations such that no prospectus, registration statement or similar document is required to be filed in any such jurisdiction.
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 Kucova oil fields 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; approval of the Addendum to the Plan of Development; 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.
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 both the Patos Marinza and the Kucova heavy oil fields. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.
For further information: Abby Badwi, President and Chief Executive Officer, (403) 513-2694; Doug Urch, VP, Finance and Chief Financial Officer, (403) 513-2691; Email: investorrelations(at)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 (BNK. BNK)
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