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Bankers Petroleum Announces 2014 First Quarter Financial and OperationalResults Record High Netback of $55.75/bbl and Q2 Average Production to Date 20,150 bopd CALGARY, May 8, 2014 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the"Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2014 first quarterfinancial and operational results. During the quarter Bankers achieved record high netbacks of $55.75 per barrel,and free cash flow of $23 million. All amounts listed below are in US dollarsunless otherwise stated. Results at a Glance Three months ended March 31 ($000s, except as noted) 2014 2013 % change Financial Oil revenue 144,985 132,562 9% Net operating income 92,491 73,165 26% Net income 24,992 14,177 76% Basic and diluted ($/share) 0.10 0.06 73% Funds generated from operations 83,109 65,419 27% Basic ($/share) 0.32 0.26 23% Capital expenditures 59,865 47,327 26% Operating Average production (bopd) 19,911 16,919 18% Average sales (bopd) 18,435 16,605 11% Average Brent oil price ($/ 108.21 112.57 (4%) barrel) Average realized price ($/ 87.39 88.70 (1%) barrel) Netback ($/barrel) 55.75 48.96 14% March 31, December 31, 2013 March 31, 2013 2014 Cash and restricted cash 56,172 31,706 39,847 Working capital 160,346 134,094 108,497 Total assets 1,077,580 1,007,148 899,669 Long-term debt 98,374 98,150 99,488 Shareholders' equity 595,918 564,675 501,404 Highlights for the quarter ended March 31, 2014 are: Primary Drilling Program Highlights: · Average oil production for the three months ended March 31, 2014 was19,911 barrels of oil per day (bopd), 3% higher as compared to 19,303 bopd inthe previous quarter and 18% higher than 16,919 bopd in the first quarter of2013. · For the first quarter of 2014, oil sales averaged 18,435 bopdcompared to 19,710 bopd for the previous quarter and 16,605 bopd for the firstquarter of 2013. Due to marine weather conditions, an export scheduled at theend of March was delayed until early April resulting in crude oil inventoryincreasing by 43% to 444,000 barrels at March 31, 2014. · Capital expenditures were $60 million in the first quarter of 2014.The Company drilled 34 wells during the quarter, comprised of 29 horizontalproduction wells, three horizontal lateral re-drill wells and two waterdisposal wells in the main area of the Patos-Marinza oilfield. Capitalexpenditures were $68 million and $47 million for the previous quarter and thefirst quarter of 2013, respectively. Expansion of Product Margin Highlights: · For the three months ended March 31, 2014, operating, sales andtransportation costs, originating from Albanian-based companies and theiremployees, were $31 million ($18.41/bbl) as compared to $39 million ($21.59/bbl) for the preceding quarter and $36 million ($24.14/bbl) for the firstquarter of 2013. · Net operating income (netback) in the first quarter of 2014 and thefourth quarter of 2013 remained consistent at $92 million, however, on a perbarrel basis, increased 10% to $55.75/bbl from $50.48/bbl. Compared to thefirst quarter of 2013, net operating income for the first quarter of 2014increased 26% from $73 million ($48.96/bbl). Financial Highlights: · Revenue for the first quarter of 2014 was $145 million ($87.39/bbl)compared to $155 million ($85.66/bbl) in the previous quarter and $133 million($88.70/bbl) in the first quarter of 2013. Field price realization represented81% of the Brent oil benchmark price ($108.21/bbl) for the first quarter of2014 compared to 78% of the Brent oil price ($109.24/bbl) in the previousquarter and 79% of the Brent oil price ($112.57/bbl) in the first quarter of2013. · For the first quarter of 2014, royalties to the Albanian Governmentand related entities were $22 million (15% of revenue) as compared to $25million (16% of revenue) in the previous quarter and $23 million (18% ofrevenue) for the first quarter of 2013. · Funds generated from operations for the first quarter of 2014 were$83 million, a 2% increase compared to $81 million for the previous quarter anda 27% increase compared to $65 million for the first quarter of 2013. · The Company continues to maintain a strong financial position atMarch 31, 2014, with cash of $56 million and working capital of $160 million.At March 31, 2014, the Company had drawn $105 million of its $225 millionapproved credit facilities. Working capital for December 31, 2013 and March 31,2013 was $134 million and $108 million, respectively. Outlook The Company continues to execute on its three part strategy to deliver steadyand reliable growth through the primary drilling program, expanding its productmargin through surface-level improvements and validating the potential ofpolymer and water flood in the field. The second quarter 2014 quarter-to-date average production is 20,150 bopd fromthe Patos-Marinza oilfield in Albania, 1.2% higher than the first quarteraverage of 19,911 bopd. Focus in April has been development drilling in thecentre of the field with more wells per pad, leading to a deferral of someproduction to the latter half of the quarter. The Company expects overallproduction growth for the second quarter to be consistent with guidance. All six drilling rigs are active in the main area of the oilfield. In thesecond quarter, the Company will drill an estimated thirty-nine (39) horizontalproduction wells and commence operation of both the third satellite facilityand the sludge treatment facility. Other infrastructure projects includeadditional flow lines to reduce infield trucking, new well-pad cascade treatingfacilities and construction of the new equipment warehouse. Bankers will continue to expand on the polymer and water flood program asplanned with up to five (5) additional well conversions to injection in thesecond quarter. Early-stage results of the first few patterns will be sharedwith the investment community in June. Effective April 1, 2014, excise tax becomes effective pursuant to the fiscalchanges proposed by the Government of Albania at the end of 2013. Based on thecurrent diluent blend rate and diesel usage, the expected financial impact willadd approximately $5.00/bbl to the operating and sales and transportationcosts. Mitigation discussions are ongoing with the Government as to how suchcurrent costs will be reflected in cost recovery and offset within the profittax framework. The Company intends to issue the second quarter 2014 operational update andhost a conference call on Tuesday, July 8, 2014. Supporting Documents The full Management Discussion and Analysis (MD&A), Financial Statements andupdated March corporate presentation are available on www.bankerspetroleum.com.The MD&A and Financial Statements will also be available on www.sedar.com. BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars, except per share amounts) 2014 2013 Revenues $ 144,985 $ 132,562 Royalties (21,948) (23,318) 123,037 109,244 Unrealized loss on financial commodity contracts (465) (1,374) 122,572 107,870 Operating expenses 20,170 21,154 Sales and transportation expenses 10,376 14,925 General and administrative expenses 6,044 5,955 Depletion and depreciation 26,693 23,197 Share-based compensation 1,468 3,258 64,751 68,489 57,821 39,381 Net finance expense (3,813) (1,940) Income before income tax 54,008 37,441 Deferred income tax expense (29,016) (23,264) Net income for the period 24,992 14,177 Other comprehensive loss Currency translation adjustment (234) (352) Comprehensive income for the period $ 24,758 $ 13,825 Basic earnings per share $ 0.097 $ 0.056 Diluted earnings per share $ 0.095 $ 0.055 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited, expressed in thousands of US dollars) ASSETS March 31 December 31 2014 2013 Current assets Cash and cash equivalents $ 51,172 $ 24,597 Restricted cash 5,000 7,109 Accounts receivable 66,966 53,981 Inventory 26,068 38,025 Deposits and prepaid expenses 56,386 44,956 Financial commodity contracts 269 734 205,861 169,402 Non-current assets Long-term receivable 7,224 7,019 Property, plant and equipment 857,659 823,908 Exploration and evaluation assets 6,836 6,819 $ 1,077,580 $ 1,007,148 LIABILITIES Current liabilities Accounts payable and accrued liabilities $ 44,315 $ 33,812 Current portion of long-term debt 1,200 1,496 45,515 35,308 Non-current liabilities Long-term debt 98,374 98,150 Decommissioning obligation 22,548 22,806 Deferred tax liabilities 315,225 286,209 481,662 442,473 SHAREHOLDERS' EQUITY Share capital 346,716 340,305 Contributed surplus 84,885 84,811 Currency translation reserve 6,111 6,345 Retained earnings 158,206 133,214 595,918 564,675 $ 1,077,580 $ 1,007,148 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars) 2014 2013 Cash provided by (used in): Operating activities Net income for the period $ 24,992 $ 14,177 Depletion and depreciation 26,693 23,197 Accretion of long-term debt 451 1,149 Accretion of decommissioning obligation 274 241 Unrealized foreign exchange gain (45) (180) Deferred income tax expense 29,016 23,264 Share-based compensation 1,468 3,258 Discount and revaluation of long-term receivable (205) (1,061) Unrealized loss on financial commodity contracts 465 1,374 83,109 65,419 Change in long-term receivable - 1,855 Change in non-cash working capital (2,759) (37,812) 80,350 29,462 Investing activities Additions to property, plant and equipment (59,848) (47,193) Additions to exploration and evaluation assets (17) (134) Restricted cash 2,109 - Change in non-cash working capital 804 564 (56,952) (46,763) Financing activities Issue of shares for cash 3,848 101 Financing costs (433) - Change in long-term debt (296) 18,337 3,119 18,438 Foreign exchange gain (loss) on cash and cash equivalents 58 (30) Increase in cash and cash equivalents 26,575 1,107 Cash and cash equivalents, beginning of period 24,597 33,740 Cash and cash equivalents, end of period $ 51,172 $ 34,847 Interest paid $ 73 $ 222 Interest received $ 222 $ 45 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited, expressed in thousands of US dollars, except number of commonshares) Number of Currency common Share Contributed translation Retained shares capital surplus reserve earnings Total Balance at 253,828,650 $ 334,764 $ 69,435 $ 7,362 $ 71,471 $ 483,032December 31,2012 Share-based - - 4,446 - - 4,446compensation Options 43,334 171 (70) - - 101exercised Net income - - - - 14,177 14,177for theperiod Currency - - - (352) - (352)translationadjustment Balance at 253,871,984 $ 334,935 $ 73,811 $ 7,010 $ 85,648 $ 501,404March 31,2013 Share-based - - 13,139 - - 13,139compensation Options 1,809,927 5,370 (2,139) - - 3,231exercised Net income - - - - 47,566 47,566for theperiod Currency - - - (665) - (665)translationadjustment Balance at 255,681,911 $ 340,305 $ 84,811 $ 6,345 $ 133,214 $ 564,675December 31,2013 Share-based - - 2,637 - - 2,637compensation Options 1,649,694 5,634 (2,344) - - 3,290exercised Warrants 200,000 777 (219) - - 558exercised Net income - - - - 24,992 24,992for theperiod Currency - - - (234) - (234)translationadjustment Balance at 257,531,605 $ 346,716 $ 84,885 $ 6,111 $ 158,206 $ 595,918March 31,2014 Caution Regarding Forward-looking Information Information in this news release respecting matters such as the expected futureproduction levels from wells, future prices and netback, work plans,anticipated total oil recovery of the Patos-Marinza and Kuçova oilfieldsconstitute forward-looking information. Statements containing forward-lookinginformation express, as at the date of this news release, the Company's plans,estimates, forecasts, projections, expectations, or beliefs as to future eventsor results and are believed to be reasonable based on information currentlyavailable to the Company. Exploration for oil is a speculative business that involves a high degree ofrisk. The Company's expectations for its Albanian operations and plans aresubject to a number of risks in addition to those inherent in oil productionoperations, including: that Brent oil prices could fall resulting in reducedreturns and a change in the economics of the project; availability offinancing; delays associated with equipment procurement, equipment failure andthe lack of suitably qualified personnel; the inherent uncertainty in theestimation of reserves; exports from Albania being disrupted due to unplanneddisruptions; and changes in the political or economic environment. Production and netback forecasts are based on a number of assumptions includingthat the rate and cost of well takeovers, well reactivations and wellrecompletions of the past will continue and success rates will be similar tothose rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce atrates similar to the average rate of production achieved from wellsrecompletions/reactivations/development in the past; continued availability ofthe necessary equipment, personnel and financial resources to sustain theCompany's planned work program; continued political and economic stability inAlbania; the existence of reserves as expected; the continued release byAlbpetrol of areas and wells pursuant to the Plan of Development and Addendum;the absence of unplanned disruptions; the ability of the Company tosuccessfully drill new wells and bring production to market; and general risksinherent in oil and gas operations. Forward-looking statements and information are based on assumptions thatfinancing, equipment and personnel will be available when required and onreasonable terms, none of which are assured and are subject to a number ofother risks and uncertainties described under "Risk Factors" in the Company'sAnnual Information Form and Management's Discussion and Analysis, which areavailable on SEDAR under the Company's profile at www.sedar.com. There can be no assurance that forward-looking statements will prove to beaccurate. Actual results and future events could differ materially from thoseanticipated in such statements. Readers should not place undue reliance onforward-looking information and forward looking statements. About Bankers Petroleum Ltd. Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration andproduction company focused on developing large oil and gas reserves. InAlbania, Bankers operates and has the full rights to develop the Patos-Marinzaheavy oilfield, has a 100% interest in the Kuçova oilfield, and a 100% interestin Exploration Block "F". Bankers' shares are traded on the Toronto StockExchange and the AIM Market in London, England under the stock symbol BNK. SOURCE: Bankers Petroleum Ltd. For further information: David FrenchPresident and Chief Executive Officer403-513-6930 Doug UrchExecutive VP, Finance and Chief Financial Officer403-513-2691 Laura BechtelInvestor Relations Analyst403-513-3428 Email: investorrelations@bankerspetroleum.comWebsite: www.bankerspetroleum.com AIM NOMAD:Canaccord Genuity LimitedHenry Fitzgerald-O'Connor+44 0 207 523 8000 AIM BROKER:FirstEnergy Capital LLPHugh Sanderson / David van Erp+44 0 207 448 0200

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