TD Maintains Tender and $2.20 TargetBankers Petroleum Ltd. (BNK-T) C$2.07 Operational Results Overshadowed by Impending Deal Completion Shahin Amin; Soheil Sharifi (Associate) Event Yesterday before market open, Bankers Petroleum released a Q2/16 operational update. Impact: NEUTRAL We view the impact of the operational update as neutral, considering the corporate take-out process for the company by Geo-Jade for a cash consideration of C$2.20 per share. There is no new information on this process, but the company confirmed that the deal completion is subject to the approval by the Chinese State Administration of Foreign Exchange (SAFE). Bankers' management expects that this could be obtained in the coming weeks. In our opinion, the deal is more likely to close than not, and we are maintaining our TENDER rating and C$2.20 target price. However, in this note, we have also considered the scenario of the deal not closing and the possible impact on the share price. In this outcome, we would expect the share price to weaken significantly as the event-driven/arbitrage investors unwind their positions with the re-entry of fundamental investors lagging this flight of capital. However, in line with the share price performance of Bankers' closest peers in our coverage since the announcement of the Geo-Jade deal (March 20, 2016), we would expect the company's share price to eventually settle at around C$1.20 We have adjusted our valuation and estimates to account for this update. There is a slightly positive impact on our NAVPS estimates because of a better year-end net debt position. This is mainly due to better-than-expected gains (and a lower carried book value) from hedges in the quarter. TD Investment Conclusion Although the company is opportunity-rich with a substantial resource base in Albania and an excellent team, its growth prospects are limited by lower oil prices and funding constraints. The Geo-Jade offer presents an attractive exit opportunity for investors and we view the closing risks to be acceptable. Therefore, we are maintaining our C$2.20 target price and our TENDER rating.