BNK.L Regulatory News (BNK)

Bankers Petroleum announces 2012 financial results

16% increase in Oil Sales and 30% increase in Cash Flow

CALGARY, March 15, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the"Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2012 FinancialResults.

In 2012, Bankers accomplished several key achievements including recordproduction and cash flow. The Company also invested $222.7 million in capitalexpenditures during 2012. Results at a Glance (US$000, except as noted) Year ended December 31 Change 2012 2011 (%) Oil revenue 432,138 339,918 27 Net operating income 218,246 169,653 29 Net income 34,413 35,996 (4) Per share - basic ($) 0.136 0.146 (7) - diluted ($) 0.136 0.141 (4) Funds generated from operations 192,589 147,940 30 Per share - basic ($) 0.763 0.559 36 Capital expenditures 222,663 242,754 (8) Average sales (bopd) 14,808 12,784 16 Average price ($/barrel) 79.73 72.84 9 Netback ($/barrel) 40.27 36.36 11 December 31 2012 2011 Cash and deposits 38,740 54,013 Working capital 88,799 80,282 Total assets 825,816 661,216 Long-term debt 97,158 46,692 Shareholders' equity 483,032 412,679 2012 Highlights:

· Average oil production was 15,020 barrels of oil per day (bopd) 15%higher than 2011 average production of 13,051 bopd.

· Oil sales averaged 14,808 bopd, compared to 12,784 bopd in 2011, anincrease of 16%, primarily as a result of the Company's ongoing horizontaldrilling program along with continuation of well reactivations.

· Revenue increased by 27% to $432.1 million ($79.73/bbl) from $339.9million ($72.84/bbl) in 2011. Field price realization represented 71% of theBrent oil price ($112/bbl) as compared to 65% of the Brent price ($111/bbl) in2011.

· Royalties to the Albanian Government and related entities were $78.4million, 23% higher than $63.9 million for 2011.

· Operating and sales and transportation costs, originating fromAlbanian-based companies and their employees, were $135.5 million, comparedwith $106.3 million for 2011.

· The Company recorded net operating income (netback) of $218.2 million($40.27/bbl), an increase of 29% compared to $169.7 million ($36.36/bbl) in2011.

· Funds generated from operations were $192.6 million, a 30% increasecompared to $147.9 million for 2011. The fourth quarter of 2012 represents thefirst time that funds generated from operations of $53.0 million, nearlycovered capital expenditures of $53.8 million. · The Original Oil in Place (OOIP) resource assessment in Albania atyear-end was 5.4 billion barrels compared to 8.0 billion barrels in 2011.Reserves on a proved basis were 139.4 million barrels compared to 172.4 millionbarrels in 2011. On a proved plus probable basis, reserves were 225.7 millionbarrels compared to 267.1 million barrels in 2011. The corresponding netpresent value (NPV) after tax (discounted at 10%) of the proved plus probablereserves was $1.9 billion at year-end compared to $2.0 billion in 2011.

· Capital expenditures were $222.7 million compared to $242.8 millionin 2011. A total of 128 wells were drilled, including 112 horizontalproduction wells, seven lateral re-drills, four vertical core delineationwells, and four water disposal wells in the Patos-Marinza field, plus oneexploration well in Block "F". In 2011, 84 total wells were drilled.

· Several Patos-Marinza crude oil sales agreements, representing themajority of the export volumes for 2013 are priced at an average of 80% of theBrent oil benchmark, an increase of 14% over the 2012 oil price of 71% of Brentoil.

· Data collection and analysis for secondary and enhanced recoveryplanning continued in 2012 with the objective to identify the most suitablereservoir layers and areas of the field to initiate water flood, polymer floodand enhanced oil recovery programs, starting in 2013.

· With data collected from the first thermal pilot and additionalinformation including special core analysis of the expanded 2012 coringprogram, prospect areas are being selected and evaluated to design a secondthermal pilot.

· Block "F" contains several seismically defined structural andamplitude anomalies prospective for oil and natural gas. The first explorationwell was drilled in 2012 and the second exploration location has been selectedand site construction is underway and this well is expected to spud in thesecond quarter of 2013.

· The central treatment facility (CTF) is being expanded withconstruction of third crude oil sales tank to increase storage capacity andimprove operational flexibility in the Patos-Marinza field.

· Planning and construction for a new satellite facility in thenorth-central area of the field is also underway for scheduled completion inthe third quarter of 2013. This facility, along with additional cascadetreating facilities and in-field flow-lines, will improve crude oil treatingperformance in the field. · Planning and application to gain preliminary approvals for the secondphase of the crude oil sales pipeline, extending 35 kilometer from Fier to theexport terminal at Vlore, is underway and will continue through 2013. · Environmental legacy clean-up as part of the water control programcontinues to improve the condition of the oilfield and demonstrate improvementin oil rates and reduced water-cuts in wells and areas affected by water influxissues. Over 220 existing wells were isolated in 2012.

· The Company has initiated design and construction of a commercialscale sludge treatment operation to help reclaim oil from the sludge on oldleases and from ecological pits in the production area as part of on-goinglease clean-up activities.

· The Company continues to maintain a strong financial position atDecember 31, 2012 with cash of $38.7 million and working capital of $88.8million. Cash and working capital for December 31, 2011 was $54.0 million and$80.3 million, respectively.

· The Company is in the final approval stages regarding its creditfacility expansion with the International Finance Corporation (IFC) andEuropean Bank for Reconstruction and Development (EBRD), its existingreserve-based lenders. It is expected that the new credit facility willenvelope the existing $110 million facility, resulting in a new facility havingsimilar terms as the original. The original 2009 facility had a six-year termwith repayments scheduled in the latter three years.

· In August 2012, the Company entered into a financial commoditycontract representing 4,000 bopd at a floor price of $80/bbl Brent for 2013.

· The Company continues to challenge assessments from the AlbanianGovernment Tax Directorate through the Albanian Courts. In addition to thesuccess in setting aside a recently introduced separate assessment of excisetax on the Company's importation and use of diluent, over the past few months,the Courts have ruled in favor of Bankers for all other cases heard, includingthe carbon and circulation taxes on diluent imports, which resulted in recentassessments to the Company totalling over $17 million. The Company is nowpreparing to continue its defense from various levels of appeals.

Operational Update

First quarter 2013 year-to-date average production is 16,850 bopd. Bankersintends to issue the first quarter 2013 operational update and host conferencecall on Friday, April 5, 2013.

Outlook

The Company's capital program in 2013 will be $247 million, fully funded fromprojected cash flow based on an average $102.50 Brent oil price. The workprogram and budget will include the following:

· Drilling of approximately 120 horizontal and vertical wells with70-80% of the wells focused on increasing production and 20-30% focused on datacollection for improved secondary and tertiary recovery techniques in thePatos-Marinza oilfield.

· Continuing the water control and environmental clean-up program withover 200 legacy vertical well isolations to improve new well performance andexpanding water disposal capacity with additional wells.

· Initiating water flood and polymer flood operations and drillingadditional core wells for assessing future thermal development plans.

· Progressing with social and environmental impact assessments andpreliminary approvals for construction of the 35 kilometer second phase of the70,000 bopd crude oil sales pipeline from the Fier Hub to the Vlore exportterminal.

· Drilling new wells and expanding water flood activities at the Kuçovaoilfield.

· Drilling an exploration well on Block "F" and identification offurther prospects.

· Continuing with the environmental stewardship and social initiativesin our area of operations.

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 INCOMEFOR THE YEARS ENDED DECEMBER 31(Expressed in thousands of US dollars, except per share amounts) 2012 2011 Revenues $ 432,138 $ 339,918 Royalties (78,361) (63,941) 353,777 275,977 Realized loss on financial commodity contracts (6,588) - Unrealized gain (loss) on financial commodity contracts 556 (2,904) 347,745 273,073 Operating expenses 77,953 60,864 Sales and transportation expenses 57,578

45,460

General and administrative expenses 16,050 13,773 Depletion and depreciation 65,937 40,367 Share-based payments 11,205 11,041 228,723 171,505 119,022 101,568 Net finance expense 19,594 6,223 Income before income tax 99,428 95,345 Deferred income tax expense (65,015) (59,349) Net income for the year 34,413 35,996 Other comprehensive income Currency translation adjustment 953 315 Comprehensive income for the year $ 35,366 $ 36,311 Basic earnings per share $ 0.136 0.146 Diluted earnings per share $ 0.136 $ 0.141 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31 (Expressed in thousands of US dollars) ASSETS 2012 2011 Current assets Cash and cash equivalents $ 33,740 $ 49,013 Restricted cash 5,000 5,000 Accounts receivable 35,603 56,006 Inventory 23,517 14,412 Deposits and prepaid 30,265 17,463 expenses Financial commodity contracts 1,550 3,684 129,675 145,578 Non-current assets Long-term receivable 11,150 - Property, plant and equipment 681,399 514,184 Exploration and evaluation assets 3,592 1,454 $ 825,816 $ 661,216 LIABILITIES Current liabilities Accounts payable and accrued liabilities $ 38,787 $ 52,109 Current portion of long-term debt 2,089 13,187 40,876 65,296 Non-current liabilities Long-term debt 97,158 46,692 Decommissioning obligation 16,747 13,561 Deferred tax liabilities 188,003 122,988 342,784 248,537 SHAREHOLDERS' EQUITY Share capital 334,764 318,021 Warrants - 1,540 Contributed surplus 69,435 49,651 Currency translation reserve 7,362 6,409 Retained earnings 71,471 37,058 483,032 412,679 $ 825,816 $ 661,216 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31 (Expressed in thousands of US dollars) 2012 2011 Cash provided by (used in): Operating activities Net income for the year $ 34,413 $ 35,996 Depletion and depreciation 65,937

40,367

Amortization of deferred financing costs -

734

Accretion of long-term debt 4,791

2,555

Accretion of decommissioning obligation 829

460

Unrealized foreign exchange loss 636

1,122

Deferred income tax expense 65,015 59,349 Share-based payments 11,205 11,041 Discount of long-term receivable 7,629

-

Realized loss on financial commodity contracts 6,588

-

Unrealized (gain) loss on financial commodity contracts (556)

2,904

Cash premiums paid for financial commodity contracts (3,898)

(6,588) 192,589 147,940 Change in long-term receivable (18,779)

-

Change in non-cash working capital (12,064) (15,743) 161,746 132,197 Investing activities Additions to property, plant and equipment (220,525) (241,300) Additions to exploration and evaluation assets (2,138) (1,454) Restricted cash - (3,500) Change in non-cash working capital (2,762) 6,786 (225,425) (239,468) Financing activities Issue of shares for cash 13,555 5,783 Financing costs (750) (30) Increase in long-term debt 35,537 44,543 Share issue costs - (167) 48,342 50,129

Foreign exchange gain (loss) on cash and cash equivalents 64

(464)

Decrease in cash and cash equivalents (15,273)

(57,606)

Cash and cash equivalents, beginning of year 49,013

106,619

Cash and cash equivalents, end of year $ 33,740 $ 49,013 Interest paid $ 4,788 $ 2,362 Interest received $ 438 $ 574 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Expressed in thousands of US dollars, except number of common shares) Number of Currency common Share Contributed translation Retained shares capital Warrants surplus reserve earnings Total Balance at 309,379 28,135 $ $ 1,062 $ 346,267December31, 2010 244,794,990 $ $ 1,597 $ 6,094 Share-based - 24,485 - 24,485payments - - - Options 8,348 (2,969) - 5,379exercised 2,728,446 - - Warrants 461 - - 404exercised 174,333 (57) - Share issue (167) - - - (167)costs - - Net income - - - 35,996 35,996for theyear - - Currency - - - 315translationadjustment - - 315 Balance at 318,021 49,651 $ $ 37,058 $ 412,679December31, 2011 247,697,769 $ $ 1,540 $ 6,409 Share-based - 21,432 - 21,432payments - - - Options 4,147 (1,655) - 2,492exercised 1,457,890 - - Warrants 12,596 - - 11,063exercised 4,672,991 (1,533) - Warrants - 7 - -expired - (7) - Net income - - 34,413 34,413for theyear - - - Currency - - - 953translationadjustment - - 953 Balance at 334,764 69,435 $ $ 71,471 $ 483,032December31, 2012 253,828,650 $ $ - $ 7,362

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.

Review by Qualified Person

This release was reviewed by Suneel Gupta, Executive Vice President and COO ofBankers Petroleum Ltd., who is a "qualified person" under the rules andpolicies of AIM in his role with the Company and due to his training as aprofessional petroleum engineer (member of APEGGA) with over 20 years'experience in domestic and international oil and gas operations.

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 and has a 100% interest in the Kuçova oilfield, and a 100%interest in Exploration Block "F". Bankers' shares are traded on the TorontoStock Exchange and the AIM Market in London, England under the stock symbolBNK.

SOURCE: Bankers Petroleum Ltd.

For further information:

Abby BadwiPresident and Chief Executive Officer(403) 513-2694 Doug UrchExecutive VP, Finance and Chief Financial Officer(403) 513-2691 Mark HodgsonVP, Business Development(403) 513-2695 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

(BNK. BNK)