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Bankers Petroleum Announces 2015 First Quarter Financial and OperationalResults Cash Margin of US$23.32/bbl and Q2 Average Production to Date 19,700 bopd CALGARY, May 7, 2015 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the"Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2015 first quarterfinancial and operational results. During the quarter, Bankers achieved a cash margin for US$23.32 per barrel andnetback of US$13.62 per barrel. All amounts listed in this news release are inUS dollars unless otherwise stated. Results at a Glance Three months ended March 31 (US$000s, except as noted) 2015 2014 % change Financial Oil revenue 72,404 144,985 (50%) Net operating income 24,868 92,491 (73%) Net income 879 24,992 (96%) Basic (US$/share) 0.003 0.097 (97%) Diluted (US$/share) 0.003 0.095 (97%) Funds generated from 24,890 83,109 (70%) operations Basic (US$/share) 0.095 0.323 (71%) Capital expenditures 49,945 59,865 (17%) Operating Average production (bopd) 19,767 19,911 (1%) Average sales (bopd) 20,283 18,435 10% Average Brent oil price (US$ 53.94 108.21 (50%) /barrel) Average realized price (US$/ 39.66 87.39 (55%) barrel) Netback (US$/barrel) 13.62 55.75 (76%) March 31, December 31, 2014 March 31, 2015 2014 Cash and restricted cash 57,842 73,036 56,172 Working capital 174,209 201,325 160,346 Total assets 1,264,256 1,284,846 1,077,580 Long-term debt 98,872 98,276 98,374 Shareholders' equity 718,552 716,536 595,918 Highlights for the quarter ended March 31, 2015 are: Operational Highlights: * Average oil production for the three months ended March 31, 2015 was 19,767 barrels of oil per day (bopd) compared to 20,338 bopd in the previous quarter and 19,911 bopd in the first quarter of 2014. * Oil sales averaged 20,283 bopd for the first quarter of 2015 compared to 20,619 bopd for the previous quarter and 18,435 bopd for the first quarter of 2014. Crude oil inventory at March 31, 2015 decreased to 270,000 barrels compared to 315,500 barrels at December 31, 2014. * During the first quarter of 2015, capital expenditures were $50 million. The Company drilled 21 wells during the quarter, comprised of 20 horizontal production wells and one lateral re-drill in the main area of the Patos-Marinza oilfield. Capital expenditures were $72 million for the previous quarter and $60 million for the first quarter of 2014. During the first quarter of 2015, Bankers reduced its active rig count from three to two in response to low commodity prices. Product Margin Highlights: * For the three months ended March 31, 2015, operating costs and sales and transportation (S&T) costs, originating from Albanian-based companies and their employees, were $37 million ($20.48/bbl) compared to $42 million ($21.92/bbl) for the previous quarter and $31 million ($18.41/bbl) for the first quarter of 2014. Overall, operating and S&T costs improved by 5%, on a per barrel basis, from the fourth quarter of 2014 to the first quarter of 2015, taking into account the $2.54/bbl impact of excise tax for the first quarter of 2015 compared to $3.10/bbl for the previous quarter. * Net operating income (netback) in the first quarter of 2015 was $25 million ($13.62/bbl) compared to $51 million ($27.01/bbl) for the previous quarter and $92 million ($55.75/bbl) for the first quarter of 2014. * Cash margin for the first quarter of 2015 was $23.32/bbl compared to $31.30 /bbl in the previous quarter and $55.75/bbl in the first quarter of 2014. Cash margin represents netback inclusive of the realized gain on commodity contracts and recovery against an outstanding accounts receivable balance. Financial Highlights: * For the first quarter of 2015, revenue was $72 million ($39.66/bbl) compared to $109 million ($57.29/bbl) in the previous quarter and $145 million ($87.39/bbl) in the first quarter of 2014. Field price realization represented 74% of the Brent oil benchmark price ($53.94/bbl) for the first quarter of 2015 compared to 75% of the Brent oil benchmark price ($76.58/ bbl) in the previous quarter and 81% of the Brent oil benchmark price ($108.21/bbl) in the first quarter of 2014. The reduction as a percentage of Brent compared to the first quarter of 2014 was mainly due to higher domestic sales during the first quarter of 2015. * Royalties to the Albanian Government and related entities during the first quarter of 2015 were $10 million (14% of revenue) compared to $16 million (15% of revenue) for the previous quarter and $22 million (15% of revenue) for the first quarter of 2014. * Funds generated from operations were $25 million ($0.095 per share) for the first quarter of 2015 compared to $23 million ($0.088 per share) for the previous quarter and $83 million ($0.323 per share) for the first quarter of 2014. * The Company continues to maintain a strong financial position at March 31, 2015, with cash of $58 million and working capital of $174 million. At March 31, 2015, the Company had drawn $111 million of its $224 million approved credit facilities. Working capital for December 31, 2014 and March 31, 2014 was $201 million and $160 million, respectively. * Bankers recognized a $14 million ($7.74/bbl) realized gain on financial commodity contracts during the first quarter of 2015. The financial commodity contracts represent 6,000 bopd at a floor price of $80/bbl of Dated Brent for 2015. At March 31, 2015, the fair value of these contracts was $42 million OUTLOOK The Company continues to execute on its three part strategy to deliver reliableand repeatable low cost horizontal wells through the primary drilling program,expanding its product margin through surface-level improvements and acceleratethe enhanced oil recovery program. The second quarter 2015 quarter-to-date average production is 19,700 bopd fromthe Patos-Marinza and Kuçova oilfields in Albania, consistent with the firstquarter average of 19,767 bopd. Bankers intends to drill eleven (11) horizontal wells in the second quarter;nine (9) horizontal production wells in the core of the Patos-Marinza field,one (1) horizontal production well in Kuçova and one (1) horizontal waterdisposal well. Infrastructure and facilities projects in the second quarter include theongoing construction of the northern flow line system, scheduled to becompleted in the third quarter, the installation of vapor recovery units andgas distribution systems to capture and utilize associated gas and theelectrification of well sites. Bankers expects to see further cost savingsthroughout 2015 with the maturing of these projects. The Company will continue to expand on the polymer and water flood program withfour (4) planned conversions in the second quarter. The pace of injectorconversions will be higher in the second half of 2015, following theinstallation of associated facilities and pipelines, with up to 20 conversionsin the third and fourth quarters. The Company intends to issue the second quarter 2015 operational update andhost a conference call on Tuesday, July 14, 2015. Carbon Dioxide Release - Remediation and Prevention Following the carbon dioxide release that occurred on April 1, 2015 during thedrilling of a horizontal well, Bankers is focused on two main objectives.First, coordinate with local community officials to recover the affected areaand return residents to their normal lives through repair work and appropriatecompensation for any damages. Secondly, Bankers has undergone a thoroughtechnical evaluation of our drilling practices to ensure this does not happenagain. Bankers operates with world-class operational and safety standards; ourhighest priority is the health and safety of our employees and the residents ofthe communities in which we operate. Supporting Documents The full Management Discussion and Analysis (MD&A), Financial Statements andupdated corporate presentation are available on www.bankerspetroleum.com. TheMD&A and Financial Statements will also be available on www.sedar.com. BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars, except per share amounts) 2015 2014 Revenues $ 72,404 $ 144,985 Royalties (10,144) (21,948) 62,260 123,037 Realized gain on financial commodity contracts 14,130 - Unrealized loss on financial commodity contracts (2,039) (465) 74,351 122,572 Operating expenses 23,495 20,170 Sales and transportation expenses 13,897 10,376 General and administrative expenses 4,652 5,872 Contract settlement expenses 355 172 Depletion and depreciation 30,119 26,693 Share-based compensation 1,182 1,468 73,700 64,751 651 57,821 Net finance expense (8,888) (3,813) Income (loss) before income tax (8,237) 54,008 Deferred income tax recovery (expense) 9,116 (29,016) Net income for the period 879 24,992 Other comprehensive loss Currency translation adjustment (1,420) (234) Comprehensive income (loss) for the period $ (541) $ 24,758 Basic earnings per share $ 0.003 $ 0.097 Diluted earnings per share $ 0.003 $ 0.095 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited, expressed in thousands of US dollars) ASSETS March 31 December 31 2015 2014 Current assets Cash and cash equivalents $ 52,251 $ 68,036 Restricted cash 5,591 5,000 Accounts receivable 61,415 81,612 Inventory 6,343 10,008 Deposits and prepaid expenses 62,312 62,984 Financial commodity contracts 42,131 44,170 230,043 271,810 Non-current assets Property, plant and equipment 1,025,558 1,004,508 Exploration and evaluation assets 8,655 8,528 $ 1,264,256 $ 1,284,846 LIABILITIES Current liabilities Accounts payable and accrued liabilities $ 46,872 $ 69,285 Current portion of long-term debt 8,962 1,200 55,834 70,485 Non-current liabilities Long-term debt 98,872 98,276 Decommissioning obligation 26,712 26,147 Deferred tax liabilities 364,286 373,402 545,704 568,310 SHAREHOLDERS' EQUITY Share capital 364,073 363,670 Contributed surplus 88,563 86,409 Currency translation reserve 2,990 4,410 Retained earnings 262,926 262,047 718,552 716,536 $ 1,264,256 $ 1,284,846 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars) 2015 2014 Cash provided by (used in): Operating activities Net income for the period $ 879 $ 24,992 Depletion and depreciation 30,119 26,693 Accretion of long-term debt 250 451 Accretion of decommissioning obligation 315 274 Unrealized foreign exchange gain (778) (45) Deferred income tax recovery (expense) (9,116) 29,016 Share-based compensation 1,182 1,468 Discount and revaluation of long-term receivable - (205) Unrealized loss on financial commodity contracts 2,039 465 24,890 83,109 Change in non-cash working capital 7,839 (2,759) 32,729 80,350 Investing activities Additions to property, plant and equipment (49,818) (59,848) Additions to exploration and evaluation assets (127) (17) Restricted cash (591) 2,109 Change in non-cash working capital (5,718) 804 (56,254) (56,952) Financing activities Issue of shares for cash 211 3,848 Financing costs - (433) Change in long-term debt 7,762 (296) 7,973 3,119 Foreign exchange gain (loss) on cash and cash equivalents (233) 58 Increase (decrease) in cash and cash equivalents (15,785) 26,575 Cash and cash equivalents, beginning of period 68,036 24,597 Cash and cash equivalents, end of period $ 52,251 $ 51,172 Interest paid $ 45 $ 73 Interest received $ 96 $ 222 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited, expressed in thousands of US dollars, except number of commonshares) Number of Currency common Contributed translation Retained shares Share surplus reserve earnings Total capital Balance at December 31, 2013 255,681,911 $ 340,305 $ 84,811 $ 6,345 $ 133,214 $ 564,675 Share-based compensation - - 2,637 - - 2,637 Options exercised 1,649,694 5,634 (2,344) - - 3,290 Warrants exercised 200,000 777 (219) - - 558 Net income for the period - - - - 24,992 24,992 Currency translation adjustment - - - (234) - (234) Balance at March 31, 2014 257,531,605 $ 346,716 $ 84,885 $ 6,111 $ 158,206 $ 595,918 Share-based compensation - - 8,403 - - 8,403 Options exercised 3,352,788 16,170 (6,660) - - 9,510 Warrants exercised 200,000 784 (219) - - 565 Net income for the period - - - - 103,841 103,841 Currency translation adjustment - - - (1,701) - (1,701) Balance at December 31, 2014 261,084,393 $ 363,670 $ 86,409 $ 4,410 $ 262,047 $ 716,536 Share-based compensation - - 2,346 - - 2,346 Options exercised 100,000 403 (192) - - 211 Net income for the period - - - - 879 879 Currency translation adjustment - - - (1,420) - (1,420) Balance at March 31, 2015 261,184,393 $ 364,073 $ 88,563 $ 2,990 $ 262,926 $ 718,552 ------------ 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. David French, President and Chief Executive Officer, 403-513-6930; Doug Urch,Executive VP, Finance and Chief Financial Officer, 403-513-2691; Laura Bechtel,Investor Relations Analyst, 403-513-3428, Email:investorrelations@bankerspetroleum.com, Website: www.bankerspetroleum.com; AIMNOMAD: Canaccord Genuity Limited, Henry Fitzgerald-O'Connor, +44 0 207 5238000; AIM BROKER: FirstEnergy Capital LLP, Hugh Sanderson / David van Erp, +440 207 448 0200