TDW Action Notes:Operational udate Q1/16-Deal Risk UnchangedDeal Risk Unchanged, Operational Efforts Backstop Valuation Event This morning before market open, the company released an operational update for Q1/16 as well as an update on the Geo-Jade acquisition. Impact: NEUTRAL We view the cash offer deal process with Geo-Jade as more material to the share price than the company's recent operational progress. In this update, there was little additional detail and we view the risk to the deal closing as unchanged. Geo-Jade (600759:CH) has now resumed trading on the Shanghai exchange, and is up 10% as of this note. The company will be holding a Special Meeting of Shareholders on May 31 (meeting materials distributed on or before April 26) with regards to the Geo-Jade acquisition. Parties involved have commenced various applications for the necessary regulatory approvals. Although sales in the first quarter came in 4% higher than we had expected, realized pricing (62% of Brent) was 22% below our estimate. Q1/16 hedging revenue of $7.4 million; the company is valuing its remaining 2016 hedge program at $16.2 million. Enhanced oil recovery (EOR) contributed 4,952 BOE/d in March (29% of total production, implied 17,076 BOE/d total production), helping to offset the company's primary decline. 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 the lower oil prices and funding constraints. Bankers Petroleum has faced a difficult period over the last few months with a significant drop in world oil prices and an escalation of the tax dispute with the Albanian authorities that is yet to be resolved. The Geo-Jade offer presents an attractive exit opportunity for the investors and we view the closing risks to be acceptable. Furthermore, we do not expect competing offers that are significantly superior to this deal. Therefore, we are maintaining our target price of C$2.20 and our rating of TENDER.