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Bankers Petroleum Notified of Changes to Albanian Fiscal Terms
Petroleum Agreements to be Amended to Eliminate Negative Impact to Bankers CALGARY, July 30 /CNW/...
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[{"type":"text","content":"\n\n\n\nPetroleum Agreements to be Amended to Eliminate Negative Impact to\n\n\nBankers\n\n\nCALGARY, July 30 /CNW/ - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) was\nadvised that the Albanian Parliament approved an amendment to the fiscal\nsystem in the hydrocarbon sector by establishing a 10% Royalty Tax to be paid\nby all contractors on the gross revenue of petroleum produced. Profit Tax,\nlevied subsequent to cost recovery, will remain unchanged at 50%.\n\n\nThe Petroleum Agreement between Albpetrol Sh.A., the national oil\ncompany, and Bankers ensures the stability in the fiscal regime in Albania as\ncontemplated by the Petroleum Law and provides for amendment of the Petroleum\nand License Agreements to eliminate any negative economic effects on the\ncontractor if changes or amendments are made to the fiscal terms. Accordingly,\nthe Company has been advised that the Ministry of Economy, Trade and Energy,\nAlbpetrol and the National Agency for Natural Resources, in consultation with\nBankers, will immediately undertake to implement other necessary incentive\namendments to the Agreements, that will mitigate the overall economic impact\nto Bankers resulting from imposition of the 10% Royalty Tax.\n\n\nThe Ministry also confirmed receipt for final approval of Bankers'\nAddendum to the Plan of Development ("the Plan") for the Patos Marinza oil\nfield. The Addendum, initially submitted by Bankers in March 2008 and approved\nby Albpetrol on May 26, 2008, proposed a 10% royalty to the Government and\nAlbpetrol during the cost recovery period, reverting to a 3% - 5% royalty\nafter cost recovery, and formed the basis for Bankers' Three-Year Strategic\nPlan, announced on March 25, 2008. The technical aspects of the Plan are\nrecommended for approval and the document will be revised to reflect the new\nRoyalty Tax as well as the measures that shall be agreed upon to eliminate the\nnegative effects thereof. Final approval of the Plan will be deferred pending\nsuch agreement and revisions, but will not impact on activity timing. It is\nthe Ministry's recommendations that an agreement to determine the incentive\nactions be finalized by August 31, 2008.\n\n\nAbout Bankers Petroleum Ltd.\n\n\nBankers Petroleum Ltd. is a Canadian-based oil and gas exploration and\nproduction company focused on developing large oil and gas reserves....