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Bankers Petroleum Announces 2014 Second Quarter Financial and OperationalResults Netback of $53.89/bbl and Q3 Average Production to Date 21,500 bopd CALGARY, Aug. 13, 2014 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the"Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2014 second quarterfinancial and operational results. During the quarter, Bankers achieved a netback of $53.89 per barrel and freecash flow of $22 million. All amounts listed below are in US dollars unlessotherwise stated. Results at a Glance Three months ended June 30 Six months ended June 30($000s, except as noted) 2014 2013 % change 2014 2013 % change Financial Oil revenue 170,531 131,838 29% 315,516 264,400 19% Net operating income 106,019 69,142 53% 198,510 142,307 39% Net income 27,196 13,024 109% 52,188 27,201 92% Basic ($/share) 0.11 0.05 120% 0.20 0.11 82% Diluted ($/share) 0.10 0.05 100% 0.20 0.11 82% Funds generated from operations 93,713 61,717 52% 176,822 127,136 39% Basic ($/share) 0.36 0.24 50% 0.69 0.50 38% Capital expenditures 71,501 52,389 36% 131,366 99,716 32% Operating Average production (bopd) 20,630 17,886 15% 20,272 17,404 16% Average sales (bopd) 21,620 18,008 20% 20,036 17,310 16% Average Brent oil price ($/ barrel) 109.67 102.43 7% 108.93 107.50 1% Average realized price ($/ barrel) 86.68 80.45 8% 87.00 84.39 3% Netback ($/barrel) 53.89 42.19 28% 54.74 45.42 21% June 30, 2014 December 31, 2013 June 30, 2013 Cash and restricted cash 54,827 31,706 33,381 Working capital 191,023 134,094 116,656 Total assets 1,150,878 1,007,148 918,034 Long-term debt 98,198 98,150 97,864 Shareholders' equity 634,708 564,675 519,507 Highlights for the quarter ended June 30, 2014 are: Primary Drilling Program Highlights: · Average oil production for the three months ended June 30, 2014 was20,630 barrels of oil per day (bopd), 4% higher as compared to 19,911 bopd inthe previous quarter and 15% higher than 17,886 bopd in the second quarter of2013. For the six months ended June 30, 2014, average oil production was 20,272bopd, 16% higher than 17,404 bopd for the same period in 2013. · Oil sales for the second quarter of 2014 averaged 21,620 bopd, a 17%increase compared to 18,435 bopd for the previous quarter and 20% increasecompared to 18,008 bopd for the second quarter of 2013. Crude oil inventory atJune 30, 2014 decreased to 354,000 barrels, 90,000 barrels lower than 444,000barrels at March 31, 2014, with inclusion of the export cargo that carried overfrom the first quarter into the first few days of the second quarter. Oil salesfor the six months ended June 30, 2014 were 20,036 bopd, an increase of 16%from 17,310 bopd for the comparable 2013 period. · Second quarter capital expenditures in 2014 were $72 million. TheCompany drilled 42 wells during the quarter, comprised of 39 horizontalproduction wells and three horizontal lateral re-drill wells in the main areaof the Patos-Marinza oilfield. Capital expenditures were $60 million for theprevious quarter and $52 million for the second quarter of 2013. Expansion of Product Margin Highlights: · For the three and six months ended June 30, 2014, operating, salesand transportation costs, originating from Albanian-based companies and theiremployees, were $39 million ($19.99/bbl) and $70 million ($19.27/bbl),respectively, compared to $41 million ($25.03/bbl) and $77 million ($24.61/bbl)for the same periods in 2013. · In the second quarter of 2014, net operating income (netback) was$106 million ($53.89/bbl), a 15% increase compared to $92 million ($55.75/bbl)and a 53% increase compared to $69 million ($42.19/bbl) in the previous quarterand second quarter of 2013, respectively. Net operating income for the sixmonths ended June 30, 2014 was $199 million ($54.74/bbl) compared to $142million ($45.42/bbl) in the comparable 2013 period. Financial Highlights: · Revenue for the second quarter of 2014 was $171 million ($86.68/bbl),an increase of 18% from $145 million ($87.39/bbl) in the previous quarter andan increase of 29% from $132 million ($80.45/bbl) in the second quarter of2013. Field price realization represented 79% of the Brent oil benchmark price($109.67/bbl) for the second quarter of 2014 compared to 81% of the Brent oilprice ($108.21/bbl) in the previous quarter and 79% of the Brent oil price($102.43/bbl) in the second quarter of 2013. The reduction as a percentage ofBrent compared to the previous quarter was due to spot market sales during thequarter. · For the second quarter of 2014, royalties to the Albanian Governmentand related entities were $25 million (15% of revenue) as compared to $22million (15% of revenue) in the previous quarter and $22 million (16% ofrevenue) for the second quarter of 2013. For the six months ended June 30,2014, royalties were $47 million (15% of revenue) compared to $45 million (17%of revenue) for the comparable period in 2013. · For the second quarter of 2014, funds generated from operations were$94 million, a 13% increase compared to $83 million for the previous quarterand a 52% increase compared to $62 million for the second quarter of 2013.Funds generated from operations for the six months period ended June 30, 2014were $177 million, a 39% increase from $127 million for the same period in2013. · The Company continues to maintain a strong financial position at June30, 2014, with cash of $55 million and working capital of $191 million. At June30, 2014, the Company had drawn $104 million of its $224 million approvedcredit facilities. Working capital for December 31, 2013 and June 30, 2013 was$134 million and $117 million, respectively. · Subsequent to June 30, 2014, the Company received approximately $31million of Value Added Tax (VAT) reimbursement, of the $52 million owed to theCompany at the end of the quarter. Bankers anticipates that the reimbursementmechanism will continue to run smoothly and to receive the remaining balance aswell as ongoing VAT repayments in a timely manner. Outlook In the second half of 2014, the Company will remain focused on its three partstrategy to deliver steady and reliable growth through the development drillingprogram, expanding product margins through surface-level improvements andcontinuing to validate the polymer and water flood projects through expansioninto new areas of the field. The third quarter 2014 average production to date is 21,500 bopd from thePatos-Marinza oilfield, 4.2% higher than the second quarter average of 20,630bopd. Development drilling with six rigs continues in the main part of thefield along with drilling and completion of Bankers' first dual lateral well inthe Gorani formation. Mechanical drilling operations went smoothly and the wellwill be brought on production shortly. The Company plans to expand its polymer and water flood patterns further withconversion of up to an additional ten (10) wells in the second half of theyear; three (3) polymer flood injector conversions in the third quarter and theremaining six (6) polymer flood conversions and one (1) water flood conversionin the fourth quarter. Infrastructure projects continue with commissioning of the sludge treatment andsour cascade tank facilities. Other projects ongoing in the third quarterinclude additional flow lines to reduce infield trucking, electrification ofwell pads to reduce energy consumption, and installation of a new polymermixing skid along with associated pipelines for the polymer and water floodprograms. The 3D seismic shoot over the central and northern areas of Patos-Marinza andeastern region of Block F is underway. Data acquisition is projected to becomplete by the end of third quarter followed by processing in the fourthquarter. Discussions between Bankers' Management and the Government of Albania regardingthe previously announced fiscal changes and tax law related amendments,continue to progress. The Company has now received written assurances from theGovernment that a financial offset will be offered to mitigate the impact offiscal changes implemented in 2014. A formal agreement is expected to befinalized in the third quarter. The Company intends to issue the third quarter 2014 operational update and hosta conference call on Monday, October 6, 2014. Supporting Documents The full Management Discussion and Analysis (MD&A), Financial Statements andupdated August 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 (Unaudited, expressed in thousands of US dollars, except per share amounts) Three months ended Six months ended June 30 June 30 2014 2013 2014 2013 Revenues $ 170,531 $ 131,838 $ 315,516 $ 264,400 Royalties (25,178) (21,673) (47,126) (44,991) 145,353 110,165 268,390 219,409 Unrealized loss on financial (2,307) (6) (2,772) (1,380)commodity contracts 143,046 110,159 265,618 218,029 Operating expenses 24,808 22,291 44,978 43,445 Sales and transportation expenses 14,526 18,732 24,902 33,657 General and administrative 6,444 4,513 12,488 10,468expenses Depletion and depreciation 27,983 24,438 54,676 47,635 Share-based compensation 999 3,103 2,467 6,361 74,760 73,077 139,511 141,566 68,286 37,082 126,107 76,463 Net finance expense (3,994) (3,616) (7,807) (5,556) Income before income tax 64,292 33,466 118,300 70,907 Deferred income tax expense (37,096) (20,442) (66,112) (43,706) Net income for the period 27,196 13,024 52,188 27,201 Other comprehensive income (loss) Currency translation adjustment 434 (510) 200 (862) Comprehensive income for the $ 27,630 $ 12,514 $ 52,388 $ 26,339period Basic earnings per share $ 0.105 $ 0.051 $ 0.202 $ 0.107 Diluted earnings per share $ 0.102 $ 0.051 $ 0.197 $ 0.107 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Unaudited, expressed in thousands of US dollars) ASSETS June 30 December 2014 31 2013 Current assets Cash and cash equivalents $ 44,827 $ 24,597 Restricted cash 10,000 7,109 Accounts receivable 106,791 53,981 Inventory 13,044 38,025 Deposits and prepaid expenses 58,379 44,956 Financial commodity contracts 6 734 233,047 169,402 Non-current assets Long-term receivable 7,224 7,019 Financial commodity contracts 803 - Property, plant and equipment 902,717 823,908 Exploration and evaluation assets 7,087 6,819 $ 1,150,878 $ 1,007,148 LIABILITIES Current liabilities Accounts payable and accrued liabilities $ 40,824 $ 33,812 Current portion of long-term debt 1,200 1,496 42,024 35,308 Non-current liabilities Long-term debt 98,198 98,150 Decommissioning obligation 23,627 22,806 Deferred tax liabilities 352,321 286,209 516,170 442,473 SHAREHOLDERS' EQUITY Share capital 362,178 340,305 Contributed surplus 80,583 84,811 Currency translation reserve 6,545 6,345 Retained earnings 185,402 133,214 634,708 564,675 $ 1,150,878 $ 1,007,148 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, expressed in thousands of US dollars) Three months ended Six months ended June 30 June 30 2014 2013 2014 2013 Cash provided by (used in): Operating activities Net income for the period $ 27,196 $ 13,024 $ 52,188 $ 27,201 Depletion and depreciation 27,983 24,438 54,676 47,635 Accretion of long-term debt 598 829 1,049 1,978 Accretion of decommissioning obligation 272 250 546 491 Unrealized foreign exchange (gain) loss 109 (268) 64 (448) Deferred income tax expense 37,096 20,442 66,112 43,706 Share-based compensation 999 3,103 2,467 6,361 Discount and revaluation of long-term receivable - (107) (205) (1,168) Unrealized loss on financial commodity contracts 2,307 6 2,772 1,380 Cash premiums paid for financial commodity contracts (2,847) - (2,847) - 93,713 61,717 176,822 127,136 Change in long-term receivable - 202 - 2,057 Change in non-cash working capital (33,979) (7,137) (36,738) (44,949) 59,734 54,782 140,084 84,244 Investing activities Additions to property, plant and equipment (71,250) (51,842) (131,098) (99,035) Additions to exploration and evaluation assets (251) (547) (268) (681) Restricted cash (5,000) (2,109) (2,891) (2,109) Change in non-cash working capital 1,694 968 2,498 1,532 (74,807) (53,530) (131,759) (100,293) Financing activities Issue of shares for cash 9,212 1,309 13,060 1,410 Financing costs (2) (1,994) (435) (1,994) Change in long-term debt (600) (9,136) (896) 9,201 8,610 (9,821) 11,729 8,617 Foreign exchange gain (loss) on cash and cash equivalents 118 (6) 176 (36) Increase (decrease) in cash and cash equivalents (6,345) (8,575) 20,230 (7,468) Cash and cash equivalents, beginning of period 51,172 34,847 24,597 33,740 Cash and cash equivalents, end of period $ 44,827 $ 26,272 $ 44,827 $ 26,272 Interest paid $ 3,358 $ 2,566 $ 3,431 $ 2,788 Interest received $ 52 $ 73 $ 274 $ 118 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 December 253,828,650 $ 334,764 $ 69,435 $ 7,362 $ 71,471 $ 483,03231, 2012 Share-based payments - - 8,726 - - 8,726 Options exercised 648,399 2,384 (974) - - 1,410 Net income for the - - - - 27,201 27,201period Currency translation - - - (862) - (862)adjustment Balance at June 30, 254,477,049 $ 337,148 $ 77,187 $ 6,500 $ 98,672 $ 519,5072013 Share-based - - 8,859 - - 8,859compensation Options exercised 1,204,862 3,157 (1,235) - - 1,922 Net income for the - - - - 34,542 34,542period Currency translation - - - (155) - (155)adjustment Balance at December 255,681,911 $ 340,305 $ 84,811 $ 6,345 $ 133,214 $ 564,67531, 2013 Share-based - - 4,587 - - 4,587compensation Options exercised 4,613,648 20,312 (8,377) - - 11,935 Warrants exercised 400,000 1,561 (438) - - 1,123 Net income for the - - - - 52,188 52,188period Currency translation - - - 200 - 200adjustment Balance at June 30, 260,695,559 $ 362,178 $ 80,583 $ 6,545 $ 185,402 $ 634,7082014 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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