Bankers Petroleum Ltd. has closed the sale of a 27% interest in its approximate 375,000 net acres in the Palo Duro basin, Texas, to Palo Duro Operating (U.S.), Inc., a wholly-owned subsidiary of Palo Duro Energy Inc. (Palo Duro Energy), formerly Centillion Industries Inc.

The total consideration paid for the acreage is US$19.5 million, of which US$15.0 million is in cash and the remainder in units of Centillion, comprising one share and one-half warrant. As a result, Bankers acquired 15,152,142 common shares and 7,576,071 common share purchase warrants of Palo Duro Energy. Each warrant entitles Bankers to acquire one additional common share at CDN$0.50 per share on or before May 25, 2009.

The shares represent 9.92% of the outstanding common shares of Palo Duro Energy. Under applicable securities legislation Bankers is also deemed to own and control the 7,576,071 common shares which may be acquired upon exercise of the warrants. Accordingly, Bankers is deemed to have acquired an additional 7,576,071 common shares of Palo Duro Energy, which, together with the shares, and assuming no exercise by any other holder of convertible securities of Palo Duro Energy, represents 14.18% of the outstanding common shares of Palo Duro Energy.

The cash received from the sale will be utilized to fund Bankers' 2007 U.S. capital program in the United States.