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Bankers Petroleum closes Centillion transaction for joint development of Palo Duro basin
Bankers Petroleum closes Centillion transaction for joint development of Palo Duro basin.
About this update from Big Banc Split Corp. Class A
[{"type":"text","content":"\n\n\n\nCALGARY, May 25 /CNW/ - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is\npleased to announce that it has closed the sale of a 27% interest in its\napproximate 375,000 net acres in the Palo Duro basin, Texas, to Palo Duro\nOperating (U.S.), Inc., a wholly-owned subsidiary of Palo Duro Energy Inc.\n(Palo Duro Energy), formerly Centillion Industries Inc.\n\n\nThe total consideration paid for the acreage is US$19.5 million, of which\nUS$15.0 million is in cash and the remainder in units of Centillion,\ncomprising one share and one-half warrant. As a result, Bankers acquired\n15,152,142 common shares and 7,576,071 common share purchase warrants of Palo\nDuro Energy. Each warrant entitles Bankers to acquire one additional common\nshare at CDN$0.50 per share on or before May 25, 2009.\n\n\nThe shares represent 9.92% of the outstanding common shares of Palo Duro\nEnergy. Under applicable securities legislation Bankers is also deemed to own\nand control the 7,576,071 common shares which may be acquired upon exercise of\nthe warrants. Accordingly, Bankers is deemed to have acquired an additional\n7,576,071 common shares of Palo Duro Energy, which, together with the shares,\nand assuming no exercise by any other holder of convertible securities of Palo\nDuro Energy, represents 14.18% of the outstanding common shares of Palo Duro\nEnergy.\n\n\nThe cash received from the sale will be utilized to fund Bankers' 2007\nU.S. capital program in the United States.\n\n\nCaution Regarding Forward-looking Information\n\n\nInformation in this news release respecting planned work programs on the\nCompany's US properties and anticipated natural gas production and timing\nthereof constitute forward-looking information. Statements containing\nforward-looking information express, as at the date of this news release, the\nCompany's plans, expectations, or beliefs as to future events or results and\nare believed to be reasonable based on information currently available to the\nCompany.\n\n\nExploration for natural gas is a speculative business that involves a\nhigh degree of risk. Few wells that are drilled are ultimately developed\ncommercially. Attainment of commercial production is dependent upon a number\nof factors and subject to risks including, but not limited to the ability to\nestablish economic flow rates, ultimate hydrocarbon recoveries, fut...