Bankers Finalizes Albanian PSC, Contracts 3rd Rig
Bankers announced that the Production Sharing Contract ("PSC") for Block F has been finalized. As announced on December 4th, 2009, the main terms and conditions for a production sharing agreement for the Block "F" exploration acreage application had been accepted by the National Agency of Natural Resources of Albania ("AKBN"). Negotiations to finalize the Production Sharing Contract have now concluded, and the agreement has been executed.
Block "F" is located immediately west of Bankers' Patos Marinza oilfield and covers an area of approximately 740 km(2) (185,000 acres). Excluded from the area are three gas fields operated by Albpetrol Sh.a., the Albanian National Oil Company. The area contains several seismically defined structural and amplitude anomalies prospective for oil and natural gas as well as what the Company believes to be the western boundary of the Patos Marinza oilfield.
The Agreement requires a US $1 million signing bonus and has a seven year term with three exploration periods. Commitments on the block during the first exploration period of 3 years include US $1 million in expenditure for seismic and US $4 million for the drilling of two wells. Four additional wells and additional seismic will be undertaken in the subsequent exploration periods.
Upon commercial discovery of gas, the Agreement allows for development and production periods of 25 years plus extensions at the Company's option. The discovery of gas in this block will significantly enhance the economics of future thermal recovery projects at the adjacent Patos Marinza oilfield.
Additionally, Bankers has entered into an agreement for the provision of another drilling rig with Crosco Integrated Drilling & Well Services of Croatia. The 1,000 hp rig is depth-rated for wells in excess of 3,000 meters. The one year contract, with an option to extend for a second year on the same terms and conditions, will see the rig be mobilized in May, arriving in Albania in June, with drilling commencement in July 2010. The additional rig will provide Bankers with the capacity to drill additional vertical delineation wells in the western extension of the field (up to 7 wells), the thermal pilot wells, and contribute to the horizontal program during 2010, which will accelerate field development plans, production growth and aid in proving up new reserves.
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