Bankers Petroleum expands credit facilities

Bankers Petroleum Ltd. ("Bankers" or the "Company")(TSX: BNK, AIM: BNK) is pleased to announce that it has formally entered into negotiations with the International Finance Corporation ("IFC") (a member of the World Bank Group), and the European Bank for Reconstruction and Development ("EBRD") for provision of a reserve-based long-term financing of up to US$110 million to fund upcoming capital requirements and working capital needs for the Company's Albanian projects. Subject to ongoing discussions with EBRD/IFC, completion of all required documentation for approval, necessary regulatory and stock exchange approvals and receipt of final approval from each of IFC, EBRD and Bankers Board of Directors, it is expected that this facility will be in place during the second quarter of 2009.

The credit facility is expected to consist of two six-year revolving facilities, aggregating US$50 million each, and two eight-year term loans, totalling US$10 million, to be used for environmental remediation purposes. All of the facilities are expected to be funded equally between EBRD and IFC, and involve Bankers' wholly-owned subsidiary, Bankers Petroleum Albania Ltd. Subject to all other conditions precedent, the US$10 million term loan is expected to be available immediately upon preparation and finalization of an environmental remediation action plan by Bankers, amounts under the first US$50 million tranche of the revolving facility will be fully available when the Brent oil price stabilizes above US$55 per barrel, and the second US$50 million tranche is subject to mutual agreement among Bankers, EBRD and IFC when Bankers' production exceeds 10,000 bopd and the Brent oil price stabilizes above US$62 per barrel unless another suitable oil price threshold is agreed among Bankers and EBRD/IFC.

As part of the facility and subject to Toronto Stock Exchange ("TSX") approval, Bankers has reserved for issuance sixteen million common share purchase warrants (eight million for each of IFC and EBRD), subject to completion of the loan documentation. When issued, each warrant will entitle EBRD/IFC to purchase one common share of the Company at a price of $1.50 per common share. The warrant price represents a 25% premium to the five-day volume weighted average common share trading. The warrants will be exercisable when the Brent oil price stabilizes above US$55 per barrel until the earlier of, i) one year from such date, or ii) 45 days after the date on which the Company has notified the lenders that its common shares close at or above the exercise price for twenty consecutive trading days.

Abby Badwi, President and CEO of Bankers stated that "this new credit facility, in conjunction with the Company's existing US$35 million credit facility, funds generated from operations, potential warrent exercise proceeds and cash on hand, will provide the basis to expand its capital development program when confidence returns to the energy sector and higher oil prices are realized. Bankers' Albanian projects have a flexible capital expenditure program that is currently focussed on high-impact, low-cost, maintenance levels for the first half of 2009. Commencing in the second half of 2009, Bankers expects to increase its activities when business conditions improve and the IFC/EBRD revolving facility is expected to become available. In addition, this strategic long-term investment by EBRD and IFC, as lenders and potential equity partners, will allow the Company continued access to competitive and sustainable financing arrangements to fund currently planned and future growth opportunities in Albania."

Caution Regarding Forward-looking Information

Information in this news release respecting matters such as the expected future production levels from wells, future prices and netback, work plans, anticipated total oil recovery of the Patos Marinza and Kucova oil fields constitute forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.

Exploration for oil is a speculative business that involves a high degree of risk. The Company's expectations for its Albanian operations and plans are subject to a number of risks in addition to those inherent in oil production operations, including: that Brent oil prices could fall resulting in reduced returns and a change in the economics of the project; availability of financing; delays associated with equipment procurement, equipment failure and the lack of suitably qualified personnel; the inherent uncertainty in the estimation of reserves; exports from Albania being disrupted due to unplanned disruptions; and changes in the political or economic environment.

Production and netback forecasts are based on a number of assumptions including that the rate and cost of well takeovers, well reactivations and well recompletions of the past will continue and success rates will be similar to those rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce at rates similar to the average rate of production achieved from wells recompletions/reactivations/development in the past; continued availability of the necessary equipment, personnel and financial resources to sustain the Company's planned work program; continued political and economic stability in Albania; approval of the Addendum to the Plan of Development; the existence of reserves as expected; the continued release by Albpetrol of areas and wells pursuant to the Plan of Development and Addendum; the absence of unplanned disruptions; the ability of the Company to successfully drill new wells and bring production to market; and general risks inherent in oil and gas operations.

Forward-looking statements and information are based on assumptions that financing, equipment and personnel will be available when required and on reasonable terms, none of which are assured and are subject to a number of other risks and uncertainties described under "Risk Factors" in the Company's Annual Information Form and Management's Discussion and Analysis, which are available on SEDAR under the Company's profile at www.sedar.com.

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information and forward looking statements.

About Bankers Petroleum Ltd.

Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and production company focused on developing large oil and gas reserves. In Albania, Bankers operates and has the full rights to develop both the Patos Marinza and the Kucova heavy oil fields. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.

SOURCE: Bankers Petroleum Ltd.

Abby Badwi, President and Chief Executive Officer, (403) 513-2694; Doug Urch, VP,
Finance and Chief Financial Officer, (403) 513-2691, Email:
This email address is being protected from spambots. You need JavaScript enabled to view it., Website: www.bankerspetroleum.com; AIM NOMAD:
Canaccord Adams Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050
6500; AIM JOINT BROKERS: Canaccord Adams Limited, Ryan Gaffney, Henry
Fitzgerald-O'Connor, +44 20 7050 6500; Tristone Capital Ltd., Nick Morgan, +44
20 7355 5800