Q&A with ABBY BADWI and D. Pescod

Q&A with ABBY BADWI
PRESIDENT AND CEO with BANKERS PETROLEUM
(As of September 22, 2008)
As we touch base with some of the oil and gas stories that
have been beaten and battered, but still should have big to
huge production growth in the coming years, one story
that definitely comes to mind is Bankers Petroleum. Abby
Badwi who had so much success in Egypt with Rally Energy
has now reunited much of the team for their Patos-
Marinza project in Albania.
Abby was on a tour talking about Bankers through some
of the financial districts in the United States last week
when the financial crisis was at its peak. Needless to say,
he blames the financial collapse in the US for destroying
some of value he had helped create. But it’s time to get
caught up with Abby:
David Pescod: Abby, the crisis that’s just been created
has been courtesy of the financial industry – the housing
crisis and the “fly-by-nighters” that tried to finance them,
but it does make one concerned about ones banking relationships.
How does your debt/credit position sit now and
how solid do you feel about it?
Abby Badwi: Bankers is in a strong financial position. We
have a positive working capital of $60 million mainly in
cash with major Canadian Banks, minimal bank debt, for a
company our size, of $29 million and we generate $20 million/
quarter in net operating income. Our capital program
is fully funded from our cash flow.
David Pescod: We’ve had a big drop in oil prices from
$150 to $100, but no oil and gas companies were ever
priced as if oil was really that high and now we see many
oil and gas companies priced as if oil was $80. What do
you see for oil prices down the road in a very new environment?
Abby Badwi: Our capital expenditure plans for 2009 and
2010 are based on Brent oil price of $84 and $80. $100 oil
is a bonus. I am bullish on oil price since it’s a depleting
commodity and a world that is consuming some 80+ million
barrels per day.
Bankers Petroleum
Bankers Petroleum (T-BNK) $3.17 -0.01


E&P companies cannot find 80 to100 million barrel oil
fields every single day. Oil prices will continue to have
wide fluctuations due to the economic health of the US
financial sector, the US$ and geopolitical issues
around the world.
David Pescod: Albania has just increased its royalty
rates, but they still remain some of the better ones on
the face of earth, particularly compared to what has
happened in Alberta lately. Your thoughts on working
in Albania and any interesting characteristics that
should be apparent?
Abby Badwi: Albania is hungry for foreign investments
and Bankers is one of the largest investors in the country.
A democracy since 1992, Albania is pro free market
economy, privatization of the public sector corporations
and has a slogan of “Albania is open for business”.
It has been invited to join NATO and is an aspiring
nation to join the EU.
David Pescod: The Patos-Marinza project in Albania
has huge, make that enormous reserves. How much of
it do you think is recoverable and what kind of production
rates can you see going forward?
Abby Badwi: With two billion barrels of oil in place,
Patos-Marinza has already produced 120 million barrels
and has another 150 million barrels of 2P reserves remain
to be recovered through primary recovery methods
of reactivating existing wells and infill vertical and
horizontal drilling. We believe that we can recover another
10% to 20% by secondary and tertiary recovery
applications of water flood and thermal injection. The
Kucova oil field has 500 million barrels of oil in place, it
has produced 25 million barrels to date and we expect
to recover a similar amount. We will be announcing our
reserves for this field shortly. Our current plans target
is 20,000 BOPD by the end of 2010.
David Pescod: I guess in a world like this, where
things seem to be coming out of left field, what are
your concerns about the global economy and particularly
in the oil and gas business?
Abby Badwi: The escalating problems that hit major
financial institutions in the US this year reached its
peak with the downfall of Lehman last week and vulnerability
of several other big banking names being added
to the list.


David Pescod 780-408-1750 Debbie Lewis 780-408-1748 Fax: 780-408-1501 Page 3
DEB’S DITTY:
One Sunday morning, the pastor noticed little Alex standing in the foyer of
the church staring up at a large plaque. It was covered with names and small
American flags mounted on either side of it. The six-year old had been staring
at the plaque for some time, so the pastor walked up, stood beside the
little boy, and said quietly, 'Good morning Alex.'
'Good morning Pastor,' he replied, still focused on the plaque. 'Pastor, what is
this? The pastor said, 'Well son, it's a memorial to all the young men and
women who died in the service.'
Soberly, the just stood together, starring at the large plaque.
Finally, little Alex's voice, barely audible and trembling with fear asked,
'which service, the 8:30 or the 10:45?'
To receive the Late Edition and be on our daily circulation simply e-mail Debbie at
Debbie_lewis@canaccord.com and give your address, phone number and e-mail and we’ll have you
on the list tonight.
The US Government intervention stabilized the situation for the time being and I believe that the US economic
powers will do its share through M&A transactions that will create bigger and stronger financial institutions. Our
industry is strong but you will also see increased activities in M&A in our industry this year carrying on into 2009.
David Pescod: There are an awful lot of oil and gas stocks that have been absolutely beaten up over the last few
weeks. Are there any that you would recommend at these prices?
Abby Badwi: Major Canadian E&Ps such as Encana and Canadian Natural Resources lost 30% in share value over the
last three months and should recover well. Of course, Bankers Petroleum is also a very good bet.
Disclosure: Canadian Natural Resources: Canaccord Capital covers this stock and has a Buy rating on it. (Buy: The stock is