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Bankers Petroleum Partners with Peninsula for Palo Duro Basin Exploration Program
Bankers Petroleum Partners with Peninsula for Palo Duro Basin Exploration Program.
About this update from Big Banc Split Corp. Class A
[{"type":"text","content":"\n\n\n\nDeal to Provide Funds for Exploration and Development in Texas and\n\n\nOklahoma\n\n\nCALGARY, Jan. 30 /CNW/ - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is\npleased to announce that it has entered into a letter of understanding with\nPeninsula Merchant Syndications Corp. (Peninsula) to sell 27% of its working\ninterest in its approximate 375,000 net acres in the Palo Duro basin, Texas.\nPeninsula is a private merchant bank controlled by Sam Magid, a former\nfounding partner of Salman Partners. The total consideration to be paid for\nthe acreage is US$19.5 million, of which a minimum of US$15.0 million will be\nin cash. Bankers will continue as operator for its exploration activities in\nthe Palo Duro basin.\n\n\nThe cash received from the sale will be utilized to fund Bankers' 2007\nU.S. exploration budget in the Palo Duro basin as well as the development\nprogram in Oklahoma, where the Company anticipates it will have its first\nnatural gas production tied-in by summer. The transaction is expected to close\nprior to March 31, 2007, subject to satisfaction of certain conditions\nincluding completion of formal documentation.\n\n\n\"We're pleased to have made this partnership with Peninsula, which\nunderlines the potential of the Palo Duro basin,\" said Richard Wadsworth,\nPresident. \"Both management teams have a similar view about the prospective\nvalue of the Palo Duro basin and philosophies towards the methodology to\ndevelop this asset. We look forward to a successful business relationship as\nwe continue our work in determining the best way to economically develop the\nhydrocarbons in this basin.\"\n\n\nPalo Duro Basin Activity Update\n\n\nBankers is expecting to commence drilling its Cogdell No.1-64 well in the\nnext week. This well offsets the legacy Cogdell No.1-1 well that had produced\nat a reported 2.8 million cubic feet of natural gas per day over a three day\ntest before being shut-in and experiencing mechanical problems. Bankers is\nfocusing on the Bend Group interval, utilizing underbalanced air drilling\ntechniques in order to minimize reservoir damage. This follows the apparent\nsuccess of another operator in the basin that had encouraging early results\nusing the same technique.\n\n\nTwo additional wells are planned to be drilled in the basin over the next\nfour months. Bankers is also in the planning ...