BNK.L Regulatory News (BNK)

BANKERS PETROLEUM LIMITED - 2012 Reserves Report

PR Newswire

London, February 25

Bankers Petroleum Announces 2012 Reserves Report

224 Million Barrels of Proved plus Probable (2P) Reserves; NPV of $1.86 billionAverage Production 1st Quarter to Date 16,800 bopd

CALGARY, Feb. 24, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the"Company") (TSX: BNK, AIM: BNK) is pleased to provide the results of itsDecember 31, 2012 independent reserves evaluation. Evaluations were conductedby RPS Energy Canada Ltd. (RPS) for the Patos-Marinza oilfield, Albania and byDeGolyer and McNaughton Canada Ltd. (D&M) for the Kuçova oilfield, Albania andwere prepared in accordance with Canadian National Instrument 51-101 -Standards of Disclosure for Oil and Gas Activities.

Total Company Reserves Summary

Gross Oil Reserves - Using Forecast Prices (Million barrels)

· 2P Reserves after tax value at 10% is $1.86 billion ($7.31 pershare);

· 2012 Company average production was 15,020 bopd for an annual totalvolume of 5.45 million barrels (4.1% of total proved reserves);

· Reserves Life Index is 30+ years;

· Technical adjustments to the estimated ultimate recovery (EUR) perhorizontal well and type curves reflect production performance, improvedgeological mapping, reservoir modeling, fluid testing and drilling results;

· Reserve volumes have been adjusted to reflect reduced recoverable oilbooking in non-core area extensions of the field where drilling to date hasbeen limited.

Net Present Value at 10% - After Tax Using Forecast Prices ($ millions)

Reserves Value 10% Discounted, After Tax US$/Share US$/bbl

Basic shares outstanding of as of December 31, 2012 were approximately 254million (274 million diluted).

Values are based on RPS (Patos-Marinza) and D&M (Kuçova) January 1, 2013 priceforecast tables summarized below:

Reserve Auditor Price Decks - Dated Brent

BRENT Oil Price Forecast US$/bbl

2025 $114.14 +2.0% Thereafter

Patos-Marinza Crude Pricing

The average realized sales price the Company is receiving for crude oil fromthe Patos-Marinza and Kuçova oilfields are at a discount to Brent oil.Currently, the average sales price for export sales is approximately 80% ofBrent (an increase of 13% over the 2012 average realized pricing of 71% ofBrent).

Finding and Development Costs (F&D)

In the 2012 2P development case, the horizontal well count has been increasedfrom 910 wells at a cost of $1.4 million per well in the previous year to 1,085total wells at a cost of $1.2 million per well in 2013 and beyond.

Total future undiscounted capital costs for Patos-Marinza and Kuçova areprojected to be US$2.3 billion, US$2.4 billion and US$2.7 billion on a 1P, 2Pand 3P basis, respectively. This represents the following F&D costs, calculatedas total future development capital divided by recoverable reserves excludingcurrently developed PDP and PDNP reserves:

The Original Oil in Place ("OOIP") volumes in the reserves area of the fieldhas been revised to 2.4 billion barrels, compared to 2.6 billion barrels at theend of 2011. OOIP outside the reserves area is 2.7 billion barrels compared to5.1 billion barrels in 2011.

Kucova OOIP resource estimate remains at 297 million barrels.

Abby Badwi, President and CEO of Bankers commented "The 2012 reserves areattributable to primary recovery methods by continued implementation ofhorizontal drilling which has been demonstrating positive results based onextended periods of actual well and reservoir performance. Well counts haveincreased marginally from the 2011 forecast, however, individual well andproject economic metrics remain strong. While additional drilling capital andcorresponding reserves could have been added to the development plan in lowerrecovery areas and zones in the field, the Company elected to defer these plansuntil further evaluation drilling is conducted in these areas. Looking forwardto the waterflood and polymer flood development opportunities, a successfulthermal pilot and confirming an economic source for natural gas, the Companywill be able to increase and accelerate the overall recovery from this worldclass asset."

Operational Update

Average production for the first quarter to date was 16,800 bopd; this rate is4.0% higher than the fourth quarter average production of 16,163 bopd.

Last month one of the five drilling rigs operating for the Company in Albaniawas damaged during mobilization between locations. The rig is currently beingrepaired and is expected to resume drilling next week. Bankers 2012 productionforecast remains unchanged.

The Government of Albania declared last week that the process for theprivatization of Albpetrol was unsuccessful and has been terminated. There wasno further disclosure regarding future plans for proceeding with this process.

Further details, including the February 2013 Corporate Presentation, areavailable on the Company's website www.bankerspetroleum.com.

Conference Call

The Management of Bankers will host a conference call on February 25, 2013 at6:30 am MST to discuss this reserves report. Following Management'spresentation, there will be a question and answer session for analysts andinvestors.

To participate in the conference call, please contact the conference operatorten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A live audioweb cast of the conference call will also be available on Bankers website atwww.bankerspetroleum.com or by entering the following URL into your web browserhttp://www.newswire.ca/en/webcast/detail/1113879/1214189

The web cast will be archived two hours after the presentation on the website,and posted on the website for 90 days. A replay of the call will be availableuntil March 11, 2013 by dialing 1-855-859-2056 or 1-416-849-0833 and enteringaccess code 11243361.

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.

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