Big Banc Split Corp T.BNK

Hungarian blocks

[braincloud]

Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is pleased to announce a successful bid in the third Hungarian bid round for the Pspkladny Block (Block 'P') within the Pannonian Basin in north eastern Hungary. Bankers will operate the license and fund its share of the work commitment, totaling 12.3 million of new investment into Hungary over a three and a half year contractual term. 'We are excited by the opportunity presented by this addition to our portfolio and exposure to the oil and gas rich Pannonian Basin. Hungary has a prosperous history of oil and gas production within this target rich area. Over the past two years we've been screening first for the best acreage, and then the best partners, to extend Bankers technical expertise into commercial plays in the region. We are pleased to be working with the Hungarian authorities and our Hungarian partner, TDE Services, to leverage our eleven year record of bringing the best of western technology into regional oil and gas field development in a socially and environmentally responsible way. We believe we are particularly well suited to evaluate the potential of this basin.' commented David French, President and Chief Executive Officer of Bankers Petroleum. Block 'P' The Pspkladny Block totals 878 square kilometres (km2) containing the abandoned Biharnagybajom (BNB) oilfield and prospects identified on both historical 2D and 3D seismic. The BNB oilfield, one target particularly well suited to Bankers' expertise, has not been worked on within the past twenty years aside from a portion of a 3D seismic shot over 500 km2 of the block in 2005. Bankers, under a newly formed joint venture with TDE Services known as PanBridge Hungary Zrt., committed to acquire 200 km2 of 3D seismic over a portion of the block and three (3) subsequent vertical exploration wells to be drilled by 2019 to assess the potential of the oilfield and surrounding exploration targets. Financial Commitment The bid by the joint venture included a 2 million signing bonus of which Bankers funded its 85% WI share from cash on hand. The concession agreement capital commitment will see Bankers Petroleum invest 12.3 million over a three and a half year contractual period. The program will be financed through available cash resources. The joint venture's plan to acquire 3D seismic as early as the fall of 2016 will require up to 3.5 - 4 million within the 2016 calendar year, with the remaining financial commitment to be spent on exploration drilling in 2017 and beyond. PanBridge Hungary Zrt PanBridge Hungary Zrt. is a joint venture with Bankers Petroleum holding an 85% interest and the private Hungarian oil services and exploration & production company TDE Services holding a 15% interest. Each party will fund their respective working interest share of the capital program with Bankers as the operator. TDE Services brings a wealth of technical and operational experience working within the Hungarian jurisdiction to the project. Diversifying the Portfolio Bankers is pleased to add Block 'P' in Hungary to our portfolio alongside our anchor asset, the Patos-Marinza oilfield in Albania and neighbouring concessions Block 'F' and Kucova. Bankers remains keenly focused on its Albanian assets, maximizing recovery from the Patos-Marinza oilfield utilizing western Canadian oil recovery techniques. Albanian Tax Assessment Update Bankers continues to carefully monitor the situation regarding to the Albanian Tax Assessment. The Company expects the Albanian Government to fully comply with the previously announced stop order issued by the Tribunal constituted by the International Court of Arbitration of the International Chamber of Commerce ('ICC'). This stop order requires the Albanian tax department to lift the suspension of the Company's Albanian bank accounts and to allow the Company to continue to operate as usual until the outstanding audit issue can be resolved through the agreed upon third-party international audit. Bankers has officially submitted an application with the ICC Tribunal for a longer term injunction which will be heard by the ICC Tribunal in the coming weeks.

[Yohon]

Exciting.  Lets see how the Albanian Gov responds to this or if it can be leveraged.

[dubsbs]

Hey Braincloud..... What do you think of Hungry as an operating enviroment compared to albania  ( prior to this last fiasco we have)

[braincloud]

Firstly, I don't think that this Albanian thing is as bad as it looks. What I mean to say is here is the tax department that has had a gravy train of income steadily coming in for a few years. It's probably a new person to boot. now that gravy train has slowed dramatically and that person is under the gun to find some money. What would you do? I think I'd show that I was diligent. It

[LordIskander]

The country risk is as bad as it looks. As an Albanian i have been cringing listening to buy side analysts assign to Albania a country risk score that I thought was overdone. Now I am not so sure anymore. The country literally shot itself in the foot with this one. Not that it has not done it before. Look at how they yanked the licence to the power distributor CEZ. It cost them 400 million EUR