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3rd Quarter Results

9 Nov 2007 07:00

Bankers Petroleum Achieves Quarter-Over-Quarter Growth in Third Quarter 2007

Positive Results and Natural Gas Sales in Oklahoma Lead to Potential Development Project Unless otherwise noted, all figures contained in this release are in U.S. dollars. CALGARY, Nov. 8 /CNW/ - Bankers Petroleum Ltd. todayannounced strong results and continued quarter-over-quarter growth in itsthird quarter of 2007. Revenue for the quarter increased 77% to $16.4 millioncompared to $9.4 million in the third quarter of 2006. Net operating incomegrew to $8.8 million in the quarter from $4.3 million in the comparable periodin 2006. Funds from operations were $6.4 million, compared to $3.0 million forthe third quarter of 2006. "Continued production growth, strength in our export capacity andincreased international oil prices have resulted in further gains to ournetback to almost $20 in the quarter," said Richard Wadsworth, President. "Weare proving our ability to add value from our primary production efforts, andare stepping forward in our strategy to increase reservoir recovery andproduction from secondary and enhanced oil recovery technologies. The start-upof testing and steam injection from our thermal steam project will providevaluable data for expansion of our pilot in 2008." Mr. Wadsworth continued, "In the U.S., we've made significant progress ina very short period in the Ardmore basin: our first vertical and horizontalwells were put on production at 3.1 mmcfe/d gross; our second horizontal wellis testing with rates around 2.1 mmcfe/d gross; our third horizontal well isdrilled; and our fourth horizontal well spudded. With these initial results webelieve this basin has the potential for a solid development project that willadd significant upside for the Company and its shareholders." Third Quarter Highlights: - Average crude oil production was 4,979 bopd compared to 4,746 bopd for the second quarter of 2007 and 4,000 bopd for the third quarter of 2006, increases of 5% and 24% respectively. - Exit crude oil production for September 2007 was approximately 5,000 bopd. - Bankers began selling natural gas from its Oklahoma properties in September. - Consolidated oil and gas revenue rose 77% to $16.4 million from $9.2 million in the comparable period in 2006, and 27% from $12.9 million in the second quarter of 2007. - The netback in Albania improved to $19.93 per barrel from $16.14 in the preceding quarter and $12.44 per barrel for the third quarter of 2006. - Net operating income was $8.8 million, an increase of 105% and 40% from the same period in 2006 and the second quarter of 2007, respectively. - Net income for the period was $264,000 compared to net income of $600,000 and loss of $208,000 for the preceding quarter and the third quarter of 2006. Net income was lower as compared to the second quarter of 2007 due to the rapidly accelerating non-cash future income tax expense.

- Funds from operations increased 34% to $6.4 million from $4.8 million

for the second quarter of 2007, and 118% from $3.0 million for the third quarter of 2006. - Bankers' available debt facility increased by $10.0 million to $31.0 million. - Construction of the Company's thermal steam pilot was completed and testing and steam injection commenced in October. - Approximately 55% of the Company's Albanian crude oil production was exported during the third quarter at an average price of $44.37 per barrel. - In Oklahoma, Bankers began selling natural gas and liquids from the Nickel Hill No. 1-26 and Greenway 35-1H wells. Initial production rates were: - The vertical Nickel Hill No. 1-26 well: approximately 900 mcfe/d. - The Greenway 35-1H well: approximately 2.2 mmcfe/d. - Bankers second successful Oklahoma horizontal well, the WLC 17-1H well, commenced initial production at approximately 2.1 mmcfe/d. - In Texas, Bankers finished drilling the horizontal leg of the Cogdell No. 64-1 well in the Atoka A, Granite Wash Sand formation. Early results during drilling indicate good natural gas shows from the sand. Conference Call: A conference call to discuss these results will be held Friday,

November 9 at 9:00 a.m. MDT, 11:00 a.m. EDT, 4:00 p.m. BDT. To participate inthe conference call, please dial 1-800-594-3615 or 1-416-644-3426approximately 10 minutes prior to the call. A live and archived audio webcastof the conference call will also be available on Bankers' website atwww.bankerspetroleum.com.

About Bankers Petroleum Ltd.

Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration andproduction company focused on opportunities in unconventional petroleumassets. Bankers holds interests in four prospects in the Northern and Centralregions of the United States, where it is currently pursuing the explorationof shale gas plays. It also operates in the Patos-Marinza oilfield in Albaniapursuant to a license agreement, producing heavy oil. Bankers' shares aretraded on the Toronto Stock Exchange and the AIM Market in London, Englandunder the ticker symbol BNK. MANAGEMENT'S DISCUSSION AND ANALYSIS The following is management's discussion and analysis (MD&A) of BankersPetroleum Ltd.'s (Bankers or the Company) operating and financial results forthe three and nine month periods ended September 30, 2007, compared to thepreceding quarter and the corresponding period in the prior year, as well asinformation and expectations concerning the Company's outlook based oncurrently available information. The MD&A should be read in conjunction withthe unaudited interim financial statements for the three and nine monthperiods ended September 30, 2007 and the audited financial statements and MD&Afor the year ended December 31, 2006. Additional information relating toBankers, including its Annual Information Form, is on SEDAR at www.sedar.comor on the Company's website at www.bankerspetroleum.com. All dollar values areexpressed in U.S. dollars, unless otherwise indicated. This report is prepared as of November 8, 2007. NON-GAAP MEASURES

Funds from operations is a non-GAAP measure that represents cash generated from (used in) operating activities before changes in non-cash working capital. The Company considers this a key measure as it demonstrates its ability to generate the cash flow necessary to fund future growth.

Netback per barrel and its components are calculated by dividing revenue,royalties, operating, sales and transportation expenses by the gross salesvolume during the period. Netback per barrel is a non-GAAP measure but it iscommonly used by oil and gas companies to illustrate the unit contribution ofeach barrel produced. Net operating income is similarly a non-GAAP measure that representsrevenue net of royalties and operating and sales and transportation expenses.The Company believes that net operating income is a useful supplementalmeasure to analyze operating performance and provide an indication of theresults generated by the Company's principal business activities prior to theconsideration of other income and expenses.

The non-GAAP measures referred to above do not have any standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures used by other companies.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

Certain information contained in this news release and MD&A respectingthe Company and the Company's properties constitute forward-lookingstatements. The use of any of the words "target", "intends", "plans","anticipate", "continue", "estimate", "expect", "may", "will", "project","should", "believe" and similar expressions are intended to identifyforward-looking statements. Such forward-looking information, including butnot limited to statements as to production targets, timing of the Company'splanned work and development programs and management's belief as to thepotential of certain properties, are based on certain assumptions and involveknown and unknown risks, uncertainties and other factors which may cause theactual results of the Company and its operations to be materially differentfrom estimated costs or results expressed or implied by such forward-lookingstatements. Assumptions on which such forward-looking statements are based includebut are not limited to: availability of funds for capital expenditures, aconsistent and improving success rate for well re-completions at PatosMarinza, continued successful drilling results from the U.S. explorationprogram, increasing production as contemplated by the PoD, ability to increasereservoir recovery and production through secondary and enhanced oil recoverymethods, potential to acquire upstream opportunities that result in highervalues, stable costs, availability of equipment and personnel when requiredfor both the Company's U.S. and Albania operations, continuing favourablerelations with Albanian governmental agencies and continuing strong demand foroil and natural gas. Such factors include, among others general risks and uncertaintiesassociated with exploration, petroleum operations and risks associated withequipment procurement and equipment failure as well as those described under"Risk Factors" in the Company's Annual Information Form and in each managementdiscussion and analysis. Although the Company has attempted to take intoaccount important factors that could cause actual costs or results to differmaterially, there may be other factors that cause costs of the Company'sprogram or results not to be as anticipated, estimated or intended. There canbe no assurance that such statements will prove to be accurate as actualresults and future events could differ materially from those anticipated insuch statements. Accordingly, readers should not place undue reliance onforward-looking information.

REVIEW BY QUALIFIED PERSON

This interim report was reviewed by Richard Wadsworth, President of Bankers Petroleum Ltd., who is a "qualified person" under the rules and policies of AIM in his role with the Company and due to his training as a professional petroleum engineer with over 14 years experience in domestic and international oil and gas operations.

OVERVIEW Three months ended Nine months ended September 30 September 30 --------------------------

--------------------------

Results at a Glance 2007 2006 % 2007 2006 %

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Financial ($000s,

except as noted)

Oil and gas revenue 16,392 9,240 77 40,044 22,336 79

Net operating income 8,834 4,316 105 19,520 9,417 107 Income (loss) for the period 264 (208) 227 (186) (1,454) 87 Funds from operations 6,420 2,950 118 14,064 6,925 103 Additions to property, plant and equipment 26,119 12,853 103 63,390 55,353 15 Total assets 185,652 127,106 46 Shareholders' equity 135,200 115,002 18 Operating Albania - crude oil Average daily production (bopd) 4,979 4,000 24 4,704 3,263 44 Average sales volume (bopd) 4,753 3,776 26 4,486 3,149 42 Average price ($/barrel) 37.14 26.63 39 32.57 25.97 25 Netback ($/barrel) 19.93 12.44 60 15.97 10.95 46 U.S. - natural gas and condensate Average sales volume (mmcf/d) 502 - n/a 502 - n/a Average sales

volume (bopd) 26 - n/a 26 - n/a

Average natural gas

price ($/mcf) 5.18 - n/a 5.18 - n/a

Average condensate

price ($/barrel) 71.46 - n/a 71.46 - n/a

Bankers continued to increase production, revenues, netback and funds from operations during the three month period ended September 30, 2007:

- Average crude oil production was 4,979 bopd compared to 4,746 bopd for the second quarter of 2007 and 4,000 bopd for the third quarter of 2006, increases of 5% and 24% respectively. - Exit crude oil production for September 2007 was approximately 5,000 bopd. - Bankers began selling natural gas from its Oklahoma properties in September. - Higher production and average oil price resulted in increased revenues of $16.4 million for the quarter compared to $12.9 million in the preceding quarter and $9.2 million for the same period in 2006. - Netback improved to $19.93 per barrel from $16.14 per barrel in the preceding quarter and $12.44 per barrel for the third quarter of 2006, increases of 23% and 60% respectively. - Net operating income was $8.8 million, an increase of 105% and 40% from the same period in 2006 and the second quarter of 2007, respectively. - Net income for the period was $264,000 compared to net income of $600,000 and loss of $208,000 for the preceding quarter and the third quarter of 2006. Net income was lower as compared to the second quarter of 2007 due to the rapidly accelerating non-cash future income tax expense.

- Funds from operations increased 34% to $6.4 million from $4.8 million

for the second quarter of 2007, and 118% from $3.0 million for the third quarter of 2006. Albania The Company exported 55% of its crude oil during the third quarter of

2007 at an average price of $44.37 per barrel. In comparison, exports made up60% of the sales during the previous quarter at an average price of $36.15 perbarrel.

Continued high export volumes and prices led to a substantially higher average oil price in the quarter. The Company averaged $37.14 per barrel compared to an average of $32.89 per barrel for the previous quarter and $26.63 for the third quarter of 2006, increases of 13% and 39% respectively.

In October, the construction of the Company's thermal steam project was completed and testing and steam injection commenced. It is anticipated that the pilot will provide valuable data on injection parameters and assumptions in order to optimize operations for an expanded steam pilot during 2008.

During the quarter, the Company commenced sales to a third export refinery, executing on its plan to increase its export sales in the future. Bankers' success in obtaining improved export prices for its Albanian crude has significantly increased netback and offset the impact of lower than anticipated production growth.

United States

In Oklahoma, Bankers began selling natural gas and liquids from the Nickel Hill No. 1-26 and Greenway 35-1H wells in September. Other events in the quarter include:

- The Greenway 35-1H well had an initial production rate of approximately 2.2 mmcfe/d. - Bankers second successful horizontal well, the WLC 17-1H well,

commenced production at an initial rate of approximately 2.1 mmcfe/d.

- Bankers completed the drilling of a third horizontal well, the

Brock 9-1H, which will be fracture stimulated in the fourth quarter.

Bankers is hopeful that it will soon be able to move its Ardmore basin acreage into a development phase in 2008 as it continues to define the potential of the Palo Duro basin.

In Texas, Bankers completed drilling the horizontal leg of the Cogdell No. 64-1 well in the Atoka A, Granite Wash Sand formation. Early results during drilling indicate good natural gas shows from the sand.

In addition, Bankers drilled the Black 4 No. 1 well, which targeted whatwas perceived to be a more thermally mature portion of the basin. Initialresults have had limited natural gas flows from some sand intervals. The wellis currently shut-in for pressure build-up tests in the sands. A fracturestimulation of the Bend shale interval is being planned that incorporates newtechniques recommended by Core Laboratories N.V. (CoreLabs).

A basin-wide core study is in the final stages of being completed by CoreLabs that incorporates all core, log, fracture and production data from the previous wells drilled in the Palo Duro that Bankers has access to. Bankers believes that the application of these techniques, together with focusing on the more thermally mature portion of the basin, will positively affect future production rates from the Bend shale formation.

DISCUSSION OF OPERATING RESULTS Production and Revenue During the quarter, production increased as more wells were re-activatedand worked over in Albania, bringing the active well count to 168 from 163 inthe preceding quarter. As at September 30, 2007, the Company also had 70 wellswaiting for servicing and reactivation. Average production increased to4,979 bopd during the quarter from 4,746 bopd for the preceding quarter andfrom 4,000 bopd from the same period a year ago. The production increaseduring the quarter was less than contemplated due to the factors that aremainly external to reservoir performance (see "Operations Update" section). During the quarter, the Company exported approximately 55% of its crudeoil mainly to two refineries in Italy at an average price of $44.37 perbarrel. In September, Bankers commenced test shipments to a third refinery. Bycomparison, during the second quarter exports made up 60% of sales at anaverage price of $36.15 per barrel. Bankers intends to maintain exports at orabove 50% during the fourth quarter in order to continue to capture thesignificant difference between domestic and export prices. Domestic sale price averaged $28.31 per barrel during the period comparedto $28.10 per barrel for the preceding quarter and $23.48 per barrel for thesame period in 2006. The Company's average oil price for the quarter was$37.14 per barrel, up from $32.89 per barrel for the preceding quarter and$26.63 per barrel for the same period in 2006.

Combined oil and gas revenues for the quarter were $16.4 million up from $12.9 million for the quarter ended June 30, 2007, and $9.2 million for the corresponding quarter a year ago, increases of 27% and 77% respectively.

The Company commenced sales of natural gas and liquids from its U.S. operations in September 2007. Revenue for the month amounted to $153,000 for net production of 23,817 mcf.

Royalties, Direct Expenses and Netbacks

Royalties are calculated pursuant to the Petroleum Agreement withAlbpetrol Sh. A (Albpetrol) in Albania and consist of Albpetrol's pre-existingproduction and a 1% gross overriding royalty on production. Royaltiesincreased to $4.40 per barrel from $4.28 per barrel in the second quarter and$3.04 per barrel for the corresponding period in 2006. The slight increase inroyalties during the third quarter of 2007 was related to wells taken overfrom Albpetrol that increased pre-existing production without a correspondingincrease in the Company's incremental production due to slower thananticipated growth. Increases in the domestic sale price from $23.48 perbarrel in September 2006 and $28.10 per barrel in June 2007 to $28.31 perbarrel in September 2007 also contributed to the unit increase in royalties asroyalties are calculated based on domestic sales price.

Operating expenses per barrel increased moderately to $10.37 per barrel from $9.91 per barrel in the preceding quarter and $9.05 per barrel for the corresponding period in 2006. This increase was due to higher personnel, down-hole equipment, repairs and maintenance and energy costs without a commensurate increase in production

Sales and transportation expenses decreased slightly to $2.44 per barrel from $2.56 per barrel in the preceding quarter and increased from $2.10 per barrel for the same period in 2006. The change was directly related to fluctuations in export levels.

The Company's netback per barrel for Albania improved significantly to $19.93 per barrel from $16.14 per barrel in the preceding quarter and $12.44 per barrel for the same period in 2006. The increase is due to higher oil prices received from export shipments.

Three months ended Nine months ended September 30 September 30 --------------------------

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Netback - Albania 2007 2006 % 2007 2006 %

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Average price ($/barrel) 37.14 26.63 39 32.57 25.97 25 Royalties 4.40 3.04 45 4.12 3.02 37 Sales and transportation 2.44 2.10 16 2.33 1.84 27 Operating 10.37 9.05 15 10.16 10.17 - --------------------------

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Netback ($/barrel) 19.93 12.44 60 15.97 10.95 46

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General and Administrative Expenses General and administrative expenses (G&A) before capitalization were$2.8 million for the quarter compared to $2.4 million for the precedingquarter and $1.7 million for the same period in 2006. The increase in G&A overthe second quarter was mainly due to the effect of the strengthening Canadiandollar against its U.S. counterpart. This increase compared to the same periodin 2006 also reflects higher personnel costs due to additional employees,higher consulting fees and travel expenses related to the Company's operatingand financing activities. During the quarter, the Company charged $2.0 million of G&A to operationsand capitalized $807,000. During the preceding quarter the comparable figureswere $1.8 million and $592,000. For the corresponding period in 2006, theCompany charged $1.4 million of G&A to operations and capitalized $325,000.Capitalized G&A were directly related to acquisition, exploration anddevelopment activities in Albania and the United States.

Depletion, Depreciation and Accretion

Depletion, depreciation and accretion (DDA) expense for the quarter endedSeptember 30, 2007 was $2.2 million compared to $1.9 million for the precedingquarter. For the same period in 2006, DDA was $1.2 million. Depletion expenseon a per barrel basis was $4.46 for the quarter compared to $4.02 and $3.11,respectively, for the preceding quarter and the same period in 2006.

Future Income Tax Expense

Future income tax expense relates to the Albanian operations and resultsfrom the following: ($ millions) 2007 2006

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Net book value of property,

plant and equipment net of asset

retirement obligations 86.2 51.4 Cost recovery pool (68.5) (45.2) -------------------------- Timing difference 17.7 6.1 -------------------------- --------------------------

Future income tax liability (at) 50% as

at September 30 8.8

3.1

Less:

Future income tax liability as at

December 31, 2006 and 2005 3.1

0.3

--------------------------

Future income tax expense for the period 5.7

2.8 -------------------------- --------------------------

The high effective income tax rate resulting from future income tax expense of $5.7 million in relation to income before taxes of $5.5 million is due to the Canadian U.S. expenses not providing any relief from taxes in Albania.

The cost recovery pool represents deductions for income taxes in Albania. Bankers is presently not paying cash taxes in any jurisdiction.

Income and Funds from Operations

The Company recorded net income of $264,000 ($0.00 per share) during the quarter compared to a net income of $600,000 ($0.00 per share) for the preceding period and a loss of $208,000 ($0.00 per share) for the third quarter of 2006.

Bankers generated funds from operations of $6.4 million during the quarter compared to $4.8 million for the preceding quarter and $3.0 million for the same period in 2006. The increase in funds from operations reflects mainly higher oil prices obtained during the period.

OPERATIONS UPDATE Albania Bankers continues to implement its work program for 2007 through welltake-overs and re-activations, bringing on new production. Production iscurrently over 5,000 bopd and is expected to increase slightly throughout theremainder of the year. Lower than anticipated production levels are believedto be due to several factors that are mainly external to reservoir performanceincluding: the previously announced water disposal constraints; unanticipatedserious mechanical wellbore and isolation failures; increased water productioncoming from shallower and deeper water bearing zones; and a shortage of rigworkover capacity and specialized well servicing equipment.

Bankers is reviewing the foregoing factors in depth and has undertaken several initiatives to address the concerns, including:

- Adding water disposal capacity in November through the deepening of several disposal wells; - Improving its workover capabilities; - Increasing service rig availability: two additional service rigs are scheduled to arrive in mid-November and December, which will assist in accelerating well workovers; - Reviewing its strategy around well re-completion practices; and - Considering an infill drilling program in 2008. While the existing production challenges are a concern and will requiremore time and resources to correct, it is believed that the difference betweenactual and target production may be re-captured through implementation of theinitiatives listed above.

Bankers commenced the testing and injection of steam into an existing well during October. The objective of these tests is twofold: to learn the reservoir response and to implement the steaming techniques in field conditions. The completion of tests is expected to lead to an expanded steam pilot in late 2008 that would involve the drilling of new directional wells from a single pad location, including building the necessary production facilities for initial cyclic steam injection followed by steam flooding. Final approvals for this program are being sought from Albpetrol and the Albanian government.

The Albanian government recently appointed an advisor for the privatization of ARMO, the state owned refineries. At this time, it is believed that the government is anticipating the privatization process to be completed in mid-2008. Bankers continues to monitor progress of the privatization and review other upstream opportunities in order to seize the potential upstream/downstream synergies, which is expected to not only increase reservoir recovery and production but may result in the Company extracting a higher value for its production.

United States

Bankers has significantly advanced the development of its Oklahoma Woodford shale prospect in Carter and Johnston Counties with the following results:

- Achieved three successful producing wells: - The vertical Nickel Hill No. 1-26 discovery well, which began sales at approximately 900 mcfe/d in September; - The Greenway No. 35-1H, which had an initial production rate of approximately 2.2 mmcfe/d. This well was drilled and fractured through the upper, middle and lower Woodford intervals, which provided insight into how different levels of the formation react to fracture stimulation; and - Bankers' second horizontal well in the basin, the WLC 17-1H, began production at an initial production rate of approximately 2.1 mmcfe/d of natural gas and liquids after fracture stimulation. The well is currently shut-in after recovering approximately 62 percent of the fracture fluid, awaiting pipeline hookup. - Finished construction of gathering lines and tied into a facility to handle production from this basin; first natural gas production and sales from the Nickel Hill No. 1-26 and Greenway No. 35-1H wells occurred during September. - Completed drilling and running casing in the horizontal portion of the Brock 9-1H well. Fracture stimulation of the well is expected to occur in the fourth quarter. - The drilling rig has moved to the next well to be drilled on Bankers acreage in this project, the Brock 4-1H well. Fracture stimulation of both of the Brock wells is planned for the same time.

- Acquired the majority of the data for the Company's 115 square mile,

3D seismic survey in Carter and Johnston Counties to aid in the development of its acreage. Pending weather, it is anticipated that the acquisition of the 3D seismic survey will be completed in November. As Bankers progresses with its drilling program, costs are decreasingsignificantly with each well. It is estimated that this will positively impactthe economics for Bankers' shale gas development. In addition, as more islearned about the reservoir, Bankers anticipates that it may also be able toincrease the productivity of the wells by fine-tuning its fracture stimulationtechniques. In Palo Duro, Texas, Bankers is progressing with its exploration programin what it considers the core area of the basin, which the Company believeshas the best potential productive Bend shale and Granite Wash Sands over itsacreage holdings. Key events within this core area included: - The Company completed drilling the horizontal leg of the Cogdell No. 64-1 well in the Atoka A, Granite Wash Sand formation, where fracture stimulation of the original vertical wellbore generated

encouraging results of approximately 325 mcf/d. Early results during

drilling indicate good natural gas shows from the sand. - It is Bankers' goal to increase the flow rate achieved from the vertical wellbore. Horizontal drilling often substantially increases flow rates over that of vertical wells. - The Black 4 No. 1 well targeted what was perceived to be a more thermally mature portion of the basin. Initial results have had limited natural gas flows from some sand intervals; the well is

currently shut-in for pressure build-up tests of the sand intervals.

A fracture stimulation of the Bend shale interval is being planned that incorporates new techniques recommended by CoreLabs. - Once repeatability is shown by establishing productivity from the shale, Bankers can begin drilling horizontal wells in the shale with a view to increasing the productivity of the wells. - A basin-wide core study is in the final stages of being completed by CoreLabs that incorporates all core, log, fracture and production data from the previous wells drilled in Palo Duro to which Bankers has access. - The analysis of the cores taken in the Palo Duro basin wells has confirmed that the rocks contain substantial volumes of gas and have some unique rock properties that may require different stimulation/completion techniques than those commonly used in other shale basins. Bankers believes that the application of these techniques, together with focusing on the more thermally mature portion of the basin, will positively affect future production rates from the Bend shale formation. - Additional tests are currently being conducted on the whole cores from the Burleson Ranch well to further clarify the findings and to determine fracture fluid incompatibilities that may have caused some of the previous performance issues.

Bankers' near-term goals for the Palo Duro basin are to improve on results from the previously drilled vertical wells and demonstrate repeatability; and to utilize horizontal wells to attempt to increase production rates substantially over vertical well rates. Further exploration and development activities will be influenced by the results of these wells.

In New York, Bankers is currently planning the acquisition of 2D seismicon its existing acreage to help evaluate the hydrothermal dolomite concept,which the Company believes has more potential for success than the originalTrenton resource play. Regionally, over 125 million barrels of oil and 200 BCFof gas have been produced from Trenton/Blackriver hydrothermal dolomite fieldsby other operators.

In Mississippi and Alabama, Bankers is continuing with Pottsville Tight Gas Sands and Floyd shale prospect development through additional geologic and geophysical work on the Black Warrior Basin project.

Subsequent Events

In November, Bankers announced the appointment of Abdel F. (Abby) Badwiin the role of Strategic Advisor, Doug Urch as Financial Advisor and IanMcMurtrie as Technical Advisor to the Company. In addition, Mr. Badwi will beappointed to the Board of Directors of Bankers upon completion of a privateplacement by the new appointees and has agreed to assume the position of ChiefExecutive Officer of Bankers on February 1, 2008. Richard Wadsworth willcontinue as President and will become Chief Operating Officer at that time. Messrs. Badwi, Urch and McMurtrie have agreed to purchase, on anon-brokered private placement basis, an aggregate of 4.4 million units of theCompany, at a price of $0.50 per unit. The $2.2 million in proceeds from theplacement will be added to the Company's working capital. Each unit willcomprise one common share of the Company and one non-transferrable sharepurchase warrant, each warrant entitling the holder, subject to certainconditions, to acquire on exercise one additional common share of the Company,at a price of $1.00 for a period of three years from the date of issue. Theprivate placement is subject to TSX approval and is expected to close prior

tothe end of November. CAPITAL EXPENDITURES Three

months ended Nine months ended

September 30 September 30

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($000) 2007 2006 2007

2006

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Albania 13,010 9,467 37,216 31,014 United States 13,053 2,948 25,937 23,861 Canada 56 438 237 478

------------------------------------

26,119 12,853 63,390

55,353

------------------------------------

The Company incurred $11.1 million in capital expenditures in Albania during the quarter for well re-activations and $4.3 million on central treatment facilities. The balance of the expenditures was related to miscellaneous asset acquisitions and capitalized G&A. The capital expenditures were offset by a decrease in prepayments to suppliers of $3.4 million for equipment in transit to Albania. For the same period in 2006, the Company incurred $9.5 million in capital expenditures in Albania, $7.9 million of which was incurred in well re-activations and the balance was primarily related to increase in field inventory and miscellaneous asset acquisitions.

In the United States, the Company incurred $11.5 million on the drillingand evaluation of wells drilled and tested in Texas and Oklahoma. Leaseacquisition costs were $1.4 million. The balance of the capital expenditureswas related to seismic acquisition, reprocessing and capitalized G&A. TheCompany incurred $2.9 million in capital expenditure in United States for thesame period in 2006 of which $865,000 million was incurred in leaseacquisitions and the balance on drilling, testing and other assetacquisitions.

ASSET RETIREMENT OBLIGATIONS

Bankers estimated its undiscounted asset retirement obligations inAlbania as $13.6 million based on the 300 wells taken over from Albpetrol todate. This amount will be settled at the end of the Company's 25-year licenseof which 24 years are remaining. The net present value of $1.7 million ofasset retirement obligations was estimated based on a credit-adjusted riskfree rate of 9%. Asset retirement obligations were increased to $1.9 millionat September 30, 2007 as a result of accretion.

In the United States, the Company estimated the total undiscounted amount required to settle the asset retirement obligations as $667,000. These obligations are expected to be settled in 15 years based on internal estimates. The undiscounted liability has been discounted using a credit adjusted risk-free interest rate of 5.5% to arrive at asset retirement obligations of $433,000.

LIQUIDITY AND CAPITAL RESOURCES

As of September 30, 2007, the Company had cash resources of approximately$8.9 million. During the quarter, Raiffeisen Bank Sh.a in Albania increasedBankers' operating line facility by $10.0 million to $16.0 million, of which$5.0 million was available at the end of the quarter.

The remaining capital expenditures in Albania for 2007 are estimated to be between $8.0 and $9.0 million of which the majority is associated with an accelerated well re-activation program. The Company expects to fund this capital program from funds from operations estimated at approximately $7.0 million and the remaining available debt facility.

In the U.S., the remaining capital expenditures are estimated at approximately $6.5 million. Cash resources currently available are sufficient to fund the remainder of the 2007 exploration program. The Company is currently reviewing various financing options for commercial development of the Oklahoma field and its 2008 U.S. exploration program.

RELATED PARTY TRANSACTIONS

Bankers contracts with a Canadian drilling company for the provision ofrigs and other oil well services at industry competitive rates. VictorRedekop, a Director of Bankers, is a principal shareholder and officer of thiscompany. During the quarter ended September 30, 2007, the Company transacted$2.6 million of services compared to $2.4 million for the preceding quarterand $2.1 million for the corresponding period in 2006. The services can beterminated upon 60 days notice at the election of the Company.

Bankers also paid $14,000 (three months ended June 30, 2007 - $13,000; three months ended September 30, 2006 - $13,000) for rent and office services to a company related by way of common directors.

COMMITMENTS

In March 2006, the Company's Plan of Development for the Patos Marinza heavy oilfield in Albania was approved by the Albanian National Agency of Natural Resources (AKBN). Under the Plan of Development, the Company estimated the remaining capital expenditures as at January 1, 2007 to be between $124.8 million to $183.3 million during the life of the Patos Marinza project.

The estimated capital expenditures during the next five years are asfollows: ($ millions) Case I Case II

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2007 38.3 42.2 2008 31.6 29.4 2009 9.5 41.6 2010 10.9 15.5 2011 9.5 10.7 Remaining 25.0 43.9

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124.8

183.3

-------------------------------------------------------------------------

The difference between Case I and Case II relates to maximum future production levels. Under the Petroleum Agreement, Bankers is required to submit an annualprogram to AKBN that includes the nature and the amount of capitalexpenditures to be incurred during that year. Significant deviations in thisannual program from the Plan of Development will be subject to AKBN approval.The Petroleum Agreement provides that disagreements between the parties willbe referred to an independent expert whose decision will be binding. TheCompany has the right to relinquish a portion or all of the contract area. Ifonly a portion of the contract area is relinquished then the Company willcontinue to conduct petroleum operations on the portion it retains and thefuture capital expenditures will be adjusted accordingly. In the event thatBankers is not able to generate sufficient capital resources, it may berequired to renegotiate the Plan of Development or relinquish all or part ofthe contract area.

The Company spent $37.2 million towards its 2007 commitment during the nine months ended September 30, 2007.

Office Premises

The Company has long-term lease commitments for its office space in Canada and Albania. The minimum lease payments for the next five years are as follow:

($000s, except as noted)

-------------------------------------------------------------------------

2007 $ 90 2008 233 2009 172 2010 172 2011 172 Thereafter 7 ---------- $ 846 ---------- ---------- Term Loan

The $15.0 million term loan is repayable in equal monthly instalments over a 48-month period. As at September 30, 2007, the entire available term loan was drawn down, of which $3.8 million was classified as a current liability and $11.2 million as long-term debt.

Principal repayments of the term loan over the next five years are as follows:

($000s, except as noted)

-------------------------------------------------------------------------

2007 940 2008 3,515 2009 3,515 2010 3,515 2011 3,515 ---------- $ 15,000 ---------- ---------- QUARTERLY SUMMARY Below is a summary of Bankers' performance over the last eight quarters. Sept 30, June 30, March 31, Dec 31, Sept 30, ($000s, except as noted) 2007 2007 2007 2006 2006

-------------------------------------------------------------------------

Albania - crude oil

Average daily

production (bopd) 4,979 4,746 4,380 4,165

4,000

Average sales volume (bopd) 4,753 4,314 4,388 4,113 3,776

Average price ($/barrel) 37.14 32.89 27.19 24.44 26.63

Royalties 4.40 4.28 3.65 3.04

3.04

Sales and transportation 2.44 2.56 1.96 1.77 2.10

Operating 10.37 9.91 10.16 9.88

9.05

--------------------------------------------

Netback ($/barrel) 19.93 16.14 11.42 9.75

12.44

--------------------------------------------

U.S. - natural gas and condensate Average sales volume (mmcf/d) 502 - - - - Average sales volume (bopd) 26 - - - - Average natural gas price ($/mcf) 5.18 - - - - Average condensate price ($/barrel) 71.46 - - - -

Oil and gas revenues 16,392 12,913 10,739 9,250 9,240 Royalties 1,922 1,682 1,440 1,149 1,055 Sales and transportation 1,068 1,007 775 670 728 Operating 4,568 4,048 4,014 3,737 3,141

--------------------------------------------

Net operating income 8,834 6,176 4,510 3,694

4,316

--------------------------------------------

General and administrative 1,975 1,824 1,659 1,916 1,422 Funds from operations 6,420 4,792 2,852 1,588 2,950 Income (loss) for the period 264 600 (1,173) (107) (208) Basic and diluted loss per share - - - - - Total assets 185,652 175,550 168,005 138,030 127,106 Term loan (including current portion) 15,000 15,000 12,268 2,000 - June 30, March 31, Dec 31, ($000s, except as noted) 2006 2006 2005

-------------------------------------------------------------------------

Albania - crude oil

Average daily production (bopd) 3,193 2,579

2,173

Average sales volume (bopd) 3,175 2,474

2,184

Average price ($/barrel) 25.64 25.55

23.13

Royalties 2.98 3.05

2.77

Sales and transportation 1.66 1.68 1.20 Operating 9.91 12.31 12.46 --------------------------- Netback ($/barrel) 11.09 8.51 6.69 --------------------------- --------------------------- U.S. - natural gas and condensate Average sales volume (mmcf/d) - - - Average sales volume (bopd) - - - Average natural gas price ($/mcf) - - - Average condensate price (bopd) - - - Oil and gas revenues 7,407 5,689 4,644 Royalties 860 679

564

Sales and transportation 480 373

241

Operating 2,862 2,741

2,246

---------------------------

Net operating income 3,205 1,896

1,593

---------------------------

General and administrative 1,450 972

904

Funds from (used in) operations 3,251 723

650

Loss for the period (253) (993)

(755)

Basic and diluted loss per share - - - Total assets 124,321 98,930

56,846

Term loan (including current portion) - - - OUTSTANDING SHARE DATA

There were approximately 448 million shares outstanding as at September 30, 2007 and November 8, 2007. In addition, the Company had approximately 67 million stock options and warrants outstanding as of the same dates.

PRINCIPAL BUSINESS RISKS

Bankers' business and results of operations are subject to a number of risks and uncertainties, including but not limited to the following:

Exploration, development, production and marketing of oil and natural gasinvolves a wide variety of risks, which include but are not limited to theuncertainty of finding oil and gas in commercial quantities, securing marketsfor existing reserves, commodity price fluctuations, exchange and interestrate exposure and changes to government regulations, including regulationsrelating to prices, taxes, royalties and environmental protection. The oil andgas industry is intensely competitive and the Company competes with a largenumber of companies with greater resources. Bankers' ability to increase its reserves in the future will depend notonly on its ability to develop its current properties but also on its abilityto acquire new prospects and producing properties. The acquisition,exploration and development of new properties also require that sufficientcapital from outside sources will be available to the Company in a timelymanner. The availability of equity or debt financing is affected by manyfactors many of which are beyond the control of the Company, including but notlimited to market conditions and commodity price changes. If the Company isnot able to obtain financing when required in reasonable terms it may berequired to put current plans on hold or decline on new opportunities.Bankers' ability to service its debt is dependent upon its ability to generatesufficient funds from operations to repay the principle and meet covenants. Bankers has a significant investment in Albania. There are a number ofrisks associated with conducting foreign operations over which the Company hasno control, including political instability, potential and actual civildisturbances, ability to repatriate funds, changes in laws affecting foreignownership and existing contracts, environmental regulations, oil and gasprices, production regulations, royalty rates, income tax law changes,potential expropriation of property without fair compensation and restrictionon exports. Additional risks that may affect the Company and its operationsare set out in its AIF filed under the Company's profile on www.sedar.com.

CHANGES IN ACCOUNTING POLICIES

On January 1, 2007, the Company adopted the new Canadian accounting standards for financial instruments - recognition and measurement and financial instruments - presentation and disclosures. Prior periods have not been restated.

Financial Instruments - Recognition and Measurement

This new standard requires all financial instruments within its scope,including all derivatives, to be recognized on the balance sheet initially atfair value. Subsequent measurement of all financial assets and liabilitiesexcept those held-for-trading and available for sale are measured at amortizedcost determined using the effective interest rate method. Held-for-tradingfinancial assets are measured at fair value with changes in fair valuerecognized in earnings. Available-for-sale financial assets are measured atfair value with changes in fair value recognized in comprehensive income andreclassified to earnings when derecognized or impaired.

Embedded Derivatives

On adoption, the Company elected to recognize, as separate assets andliabilities, only those embedded derivatives in hybrid instruments issued,acquired or substantively modified after January 1, 2003. The Company did notidentify any material embedded derivatives which required separate recognitionand measurement.

Two new Canadian accounting standards have been issued which will require additional disclosure in the Company's financial statements commencing January 1, 2008 about the Company's financial instruments as well as its capital and how it is managed.

INTERNAL CONTROLS

Disclosure controls and procedures have been designed to ensure that information required to be disclosed by the Company is accumulated and communicated to the Company's management, as appropriate, to allow timely decisions regarding required disclosure. The President and Chief Financial Officer have concluded, based on their evaluation as of September 30, 2007 that the Company's disclosure controls and procedures are effective to provide reasonable assurance that material information related to the Company, including its consolidated subsidiaries, is made known to them by others within those entities.

During the three months ended September 30, 2007, there have been no changes in the Company's internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect the Company's internal controls over financial reporting.

OUTLOOK

In Albania, Bankers is confident that the production growth from primarytechniques will continue to progress towards the Company's long-term goal of10,000 bopd by 2010, despite recent challenges. Over the next few months, theCompany will evaluate the field and implement initiatives to overcome anyshort-term issues and re-capture production growth momentum. The Company has so far exceeded its average crude oil price estimate forthe year due to increased exports at better than anticipated prices.Continuing exports and the strength in the world oil prices should result innetbacks and funds from operations that will be comparable to the thirdquarter results. Bankers has begun implementation of several initiatives that have thepotential to add significant long-term value to the Company. The testing ofthe cyclical steaming equipment is expected to lead to a new enhanced oilrecovery (EOR) cyclic steam project that will be undertaken during 2008. Asnot one single technology will work effectively across the entire field due tothe varying multiple zones and depths of the reservoir, Bankers will undertakeappropriate projects in a step-by-step fashion. Further studies andengineering are underway to pursue potential integration, secondary and otherEOR technologies that will be undertaken during 2008. Bankers is looking tothese initiatives as a means of significantly increasing production andreservoir recovery in the Patos Marinza oilfield. In the United States, Bankers has achieved its goal of first natural gasproduction in Oklahoma, progressing towards its production target of4.0 mmcfe/d exit in 2007. Positive results from the Company's first successfulhorizontal wells have led to preliminary work on a commercial developmentprogram in Oklahoma for 2008. In Texas, Bankers is progressing with its exploration program in what itconsiders the core area of the Palo Duro basin, where the Company has testednatural gas at rates that warrant further exploration. The Company willcontinue to define the potential of the basin through its activities over theremainder of 2007.

Bankers continues its progress towards unlocking the value of its portfolio of assets that offer substantial upside opportunities for its shareholders both in the near and over the long-term. The Company has experienced some challenges, but is confident it will continue its growth trend by focusing on strategies to increase reservoir recovery, reserves, production and funds from operations for the future.

BANKERS PETROLEUM LTD. CONSOLIDATED BALANCE SHEETS (Unaudited, expressed in Thousands of United States dollars)

-------------------------------------------------------------------------

ASSETS September 30 December 31 2007 2006 ------------------------- Current assets

Cash and cash equivalents $ 8,855 $

6,329 Investment (Note 2) 1,783 - Accounts receivable 10,507 7,214 Crude oil inventory 1,219 713

Deposits and prepaid expenses 1,696

1,121 ------------------------- 24,060 15,377 Property, plant and equipment (Note 3) 161,592 122,653 ------------------------- $185,652 $138,030 ------------------------- ------------------------- LIABILITIES Current liabilities Operating loan (Note 4) $ 10,967 $ 4,772 Accounts payable and accrued liabilities 13,272

11,369

Current portion of term loan (Note 4) 3,750

125 ------------------------- 27,989 16,266 Term loan (Note 4) 11,250 1,875

Asset retirement obligations (Note 5) 2,365

1,593

Future income tax liability (Note 6) 8,848

3,126 SHAREHOLDERS' EQUITY Share capital (Note 7) 134,820 116,696 Warrants (Note 7) 2,004 -

Contributed surplus (Note 7) 7,311

4,456

Deficit (6,168)

(5,982)

Accumulated other comprehensive loss (2,767) - ------------------------- 135,200 115,170 ------------------------- $185,652 $138,030 ------------------------- ------------------------- Commitments (Note 10) See accompanying notes to consolidated financial statements. BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF CHANGES IN DEFICIT, COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Unaudited, expressed in Thousands of United States dollars)

-------------------------------------------------------------------------

Three months ended Nine months

ended

September 30 September 30

------------------------------------

2007 2006 2007 2006

Deficit

Balance, beginning of period $(6,432) $(5,667) $(5,982) $(4,421)

Net income (loss) for the period 264 (208) (186) (1,454)

------------------------------------

Balance, end of period $(6,168) $(5,875) $(6,168)

$(5,875)

------------------------------------

Comprehensive Loss

Net income (loss) for the period $ 264 $ (208) $ (186) $(1,454)

Unrealized loss on investment

(Note 2) (2,767) - (2,767) -

------------------------------------

Comprehensive loss $(2,503) $ (208) $(2,953)

$(1,454)

------------------------------------

Accumulated Other Comprehensive Loss Balance, beginning of period $ - $ - $ - $ - Unrealized loss on investment (2,767) - (2,767) -

------------------------------------

Balance, end of period $(2,767) $ - $(2,767) $ -

------------------------------------

See accompanying notes to consolidated financial statements. BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF OPERATIONS AND DEFICIT FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30 (Unaudited, expressed in Thousands of United States dollars, Except PerShare Amounts)

-------------------------------------------------------------------------

Three months ended Nine months ended September 30 September 30 ------------------ ----------------- 2007 2006 2007 2006 ------------------ ----------------- Revenue Oil and gas revenue $16,392 $9,240 $40,044 $22,336 Royalties (1,922) (1,055) (5,044) (2,594)

------------------------------------

14,470 8,185 35,000

19,742

------------------------------------

Expenses

Operating 4,568 3,141 12,630

8,744

Sales and transportation 1,068 728 2,850

1,581

General and administrative 1,975 1,422 5,458

3,844

Interest and bank charges 242 - 553 - Interest on term loan 338 - 876 -

Stock-based compensation (Note 7) 1,015 706 2,505 2,450

Depletion, depreciation and

accretion 2,197 1,226 6,023

3,138

------------------------------------

11,403 7,223 30,895

19,757

------------------------------------

3,335 962 4,105

(15)

------------------------------------

Other income

Interest 151 88 487 482 Foreign exchange gain (loss) (10) (32) 944 870

------------------------------------

141 56 1,431

1,352

------------------------------------

Income before income taxes 3,208 1,018 5,536

1,337

Future income tax expense (Note 6) (2,944) (1,226) (5,722) (2,791)

------------------------------------

Net income (loss) for the period 264 (208) (186) (1,454)

Deficit, beginning of period (6,432) (5,667) (5,982)

(4,421)

------------------------------------

Deficit, end of period $(6,168) $(5,875) $(6,168)

$(5,875)

------------------------------------

Basic and diluted earnings (loss)

per share $ 0.00 $ (0.00) $ (0.00) $

(0.00)

------------------------------------

See accompanying notes to consolidated financial statements. BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30 (Unaudited, expressed in Thousands of United States dollars)

-------------------------------------------------------------------------

Three months ended Nine months ended September 30 September 30 ------------------ ----------------- 2007 2006 2007 2006 ------------------ -----------------

Cash provided by (used in)

Operating activities

Net income (loss) for the period $ 264 $ (208) $ (186) $(1,454)

Items not involving cash:

Depletion, depreciation and accretion 2,197 1,226 6,023 3,138 Future income tax expense 2,944 1,226 5,722 2,791 Stock-based compensation 1,015 706 2,505 2,450

------------------------------------

6,420 2,950 14,064

6,925

Change in non-cash working

capital (Note 11) 194 2,038 (4,010)

(2,791)

------------------------------------

6,614 4,988 10,054

4,134

------------------------------------

Investing activities

Additions to property, plant

and equipment (26,119) (12,853) (63,390)

(55,353)

Proceeds from sale of property, plant and equipment - - 15,000 - Change in non-cash working capital (Note 11) 2,961 (1,339) 1,539

3,485

------------------------------------

(23,158) (14,192) (46,851)

(51,868)

------------------------------------

Financing activities

Issue of common shares and

warrants for cash, net of

issue costs - 2.274 20,128 43,208 Operating loan 6,496 - 6,195 - Term loan - - 13,000 -

------------------------------------

6,496 2,274 39,323

43,208

------------------------------------

Increase (decrease) in cash and

cash equivalents (10,048) (6,930) 2,526

(4,526)

Cash and cash equivalents, beginning

of period 18,903 15,933 6,329

13,529

------------------------------------

Cash and cash equivalents,

end of period (Note 11) $ 8,855 $ 9,003 $ 8,855 $

9,003

------------------------------------

See accompanying notes to consolidated financial statements. Notes to the Consolidated Financial Statements (unaudited, expressed in Thousands of U.S. dollars) 1. BASIS OF PRESENTATION The interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles (GAAP). Certain information and note disclosures normally included in financial statements prepared in accordance with Canadian GAAP have been condensed or omitted. These interim consolidated financial statements should be read together with the audited consolidated financial statements and the accompanying notes for the year ended December 31, 2006. In the opinion of the Company, its unaudited interim consolidated financial statements contain all adjustments necessary in order to present a fair statement of the results of the interim periods presented. The preparation of interim financial

statements is based on accounting principles and practices consistent

with those used in the preparation of annual financial statements, except for the following changes in accounting policies: On January 1, 2007, the Company adopted the new Canadian accounting standards for financial instruments - recognition and measurement and financial instruments - presentation and disclosures. Prior periods have not been restated. Financial instruments - recognition and measurement This new standard requires all financial instruments within its scope, including all derivatives, to be recognized on the balance sheet initially at fair value. Subsequent measurement of all financial assets and liabilities except those held-for-trading and available for sale are measured at amortized cost determined using the effective interest rate method. Held-for-trading financial assets are measured at fair value with changes in fair value recognized in earnings. Available-for-sale financial assets are measured at fair value with changes in fair value recognized in comprehensive income and reclassified to earnings when impaired. Cash and cash equivalents are held-to-maturity investments and the

fair values approximate their carrying value due to their short-term

nature. Accounts receivable, operating loan, accounts payable and accrued liabilities are classified as loans and receivables and the fair value approximates their carrying value due to the short-term nature of these instruments. The term loan is classified as a loan and its fair value approximates its carrying value as it bears interest at market rates. The Company has not designated any financial instruments as held-for-trading. The Company has designated its investment in the units of Palo Duro Energy Inc. as available-for-sale.

The unaudited consolidated financial statements include the accounts

of the Company and its wholly-owned operating subsidiaries, Bankers Petroleum Albania Ltd. and Bankers Petroleum (U.S.) Inc. Unless where otherwise noted, the unaudited interim consolidated financial statements and their accompanying notes are presented in thousands of United States dollars. Certain prior period figures have been re-classified to conform to the current period's presentation. 2. INVESTMENT 2007 2006

---------------------------------------------------------------------

15,152,142 units of Palo Duro Energy Inc. $ 1,733 $ - Other 50 -

---------------------------------------------------------------------

$ 1,783 $ -

---------------------------------------------------------------------

In May 2007, the Company sold a 27% working interest in the Palo Duro basin, Texas to a wholly owned U.S. subsidiary of a Canadian public company. This transaction was satisfied by a payment of $15 million in cash and the issue of 15,152,142 units of Palo Duro Energy Inc. valued at $4.5 million. Each unit consists of one common share and

one half of one common share purchase warrant. Each warrant entitles

the holder to acquire an additional common share at a price of CAD $0.50 per share until March 21, 2009. As at September 30, 2007 the Company has not sold any of the shares and the quoted market value of the investment at that date was $1,733. Accordingly, an unrealized loss of $2,767 was recorded in other comprehensive loss and the investment is written down to its market value. 3. PROPERTY, PLANT AND EQUIPMENT The following table summarizes the Company's property, plant and equipment as at September 30, 2007 and December 31, 2006: 2007 2006

-------------------------------------------

Accumu- lated depletion and deprecia- Net Book Net Book Cost tion Value Value

-------------------------------------------

Oil and gas properties - Albania $ 98,922 $ 12,216 $ 86,706 $ 55,084 Oil and gas properties - United States 73,091 42 73,049 66,520 Equipment, furniture and fixtures 2,384 547 1,837 1,049

-------------------------------------------

$ 174,397 $ 12,805 $ 161,592 $

122,653

-------------------------------------------

The depletion expense calculation for the three and nine month periods ended September 30th, 2007 for the United States cost centre excludes $66,864 (2006 - $66,520) relating to unproved properties. The Company capitalized general and administrative expenses of $807 and $2,198 during the three and nine month periods ended September 30, 2007 ($325 and $825 for the corresponding periods in 2006) in Albania and the United States that were directly related to exploration and development activities. Depletable assets for the depletion calculation for the nine months ended September 30, 2007 included $101,000 (2006 - $81,000) for

estimated future development costs associated with proved undeveloped

reserves in Albania. 4. TERM AND OPERATING LOAN FACILITY The term and operating loan facility is comprised of a $16 million operating loan and a $15 million five-year term loan. The facility is secured by all of the assets of Bankers Petroleum Albania Ltd., assignment of proceeds from the Albanian domestic and export crude oil sales contracts, a pledge of the common shares of Bankers Petroleum Albania Ltd., and a guarantee by the Company. (a) Operating Loan The operating loan has a one year term and bears interest at one year LIBOR plus 3.5%. The term of the operating loan may be extended for further twelve month periods up to four times upon request by the Company and acceptance by the lender. As at September 30, 2007, $10,967 of the operating loan was drawn down. (b) Term Loan The term loan has no scheduled repayments during the first twelve months after which it is repayable in equal monthly instalments over a 48-month period. The term loan bears interest at one year LIBOR plus 4.5%. As at September 30, 2007, the entire term loan was drawn down of which $3,750 was classified as a current liability and $11,250 as long-term debt. Principal repayments of the term loan over the five years are as follows:

---------------------------------------------------------------------

2007 $ 940 2008 3,515 2009 3,515 2010 3,515 2011 3,515 ---------- $ 15,000 ---------- ---------- 5. ASSET RETIREMENT OBLIGATIONS In Albania, the Company estimated the total undiscounted amount required to settle the asset retirement obligations at $13,565. These obligations will be settled at the end of the Company's 25-year license of which 24 years are remaining. The undiscounted liability has been discounted using a credit-adjusted risk-free interest rate of 9% to arrive at asset retirement obligations of $1,932, as at September 30, 2007. In the United States, the Company estimated the total undiscounted amount required to settle the asset retirement obligations at $667. These obligations are expected to be settled in 15 years. The undiscounted liability has been discounted using a credit-adjusted risk-free interest rate of 5.5% to arrive at asset retirement obligations of $433, as at September 30, 2007.

---------------------------------------------------------------------

Asset retirement obligations, December 31, 2006 $ 1,593 Liabilities incurred during the period 656 Accretion 116

----------

Asset retirement obligations, September 30, 2007 $ 2,365 ---------- ---------- 6. FUTURE INCOME TAX LIABILITY Future income tax expense relates to the Albanian operations and results from the following: 2007 2006

---------------------------------------------------------------------

Net book value of property, plant and equipment net of asset retirement obligations $ 86,176 $ 51,373 Cost recovery pool (68,481) (45,226) ---------------------- Timing difference $ 17,695 $ 6,147 ---------------------- ----------------------

Future income tax liability (at) 50% as at September 30 $ 8,848 $ 3,073 Less: Future income tax liability as at December 31, 2006 and 2005 3,126 282

----------------------

Future income tax expense for the period $ 5,722 $ 2,791- ---------------------- ---------------------- The high effective income tax rate resulting from future income tax expense of $5,722 in relation to income before taxes of $5,536 is due to the Canadian and the U.S. expenses not providing any relief from taxes in Albania. The cost recovery pool represents deductions for income taxes in Albania. 7. SHAREHOLDERS' EQUITY (a) Share Capital and Contributed Surplus Authorized Unlimited number of common shares with no par value. Issued Number of Contributed Common Shares Amount Surplus

---------------------------------------------------------------------

Balance, December 31, 2005 327,986,533 $ 53,205 $ 2,014 Shares issued pursuant to a private placement 50,000,000 43,200 - Issue of common shares for oil and gas properties 25,971,715 20,000 - Exercise of compensation options 784,636 381 - Shares issued on exercise of warrants 7,323,750 2,608 - Share issuance costs - (2,698) - Stock-based compensation - - 2,442

----------------------------------------

Balance, December 31, 2006 412,066,634 116,696 4,456 Shares issued pursuant to a public offering 36,042,858 19,227 - Share issuance costs - (1,103) - Stock-based compensation - - 2,855

----------------------------------------

Balance, September 30, 2007 448,109,492 $ 134,820 $ 7,311

----------------------------------------

Weighted average number of common shares used in the calculation of basic loss per share was 448,109,492 and 440,320,010 for the three and nine month periods ended September 30, 2007 (408,909,069 and 381,048,029 for the same periods in 2006).

The weighted average number of common shares used in the calculation

of diluted earnings per share was 451,458,624 for the three month period ended September 30, 2007. In March 2007, the Company issued an aggregate of 36,042,858 units at a price of CDN$0.70 per unit on a bought-deal basis, resulting in net proceeds of approximately $20,119 after commissions and share issue expenses. Each unit consists of one common share and one-half of one

common share purchase warrant. The Company determined the fair value

of warrants as CDN$0.15 using the Black-Scholes option pricing model.

As a result, $2,307 of the proceeds were allocated to warrants. Each whole warrant will entitle the holder to purchase one common share of the Company at a price of CDN$0.90 for a period of five years from the closing of the offering. (b) Warrants A summary of the changes in warrants is presented below. Weighted Average Exercise Number of Price Warrants Amount (CAD $)

---------------------------------------------------------------------

Balance, December 31, 2006 15,902,023 $ - 0.95 Warrants issued pursuant to a public offering 18,021,429 2,307 0.90 Issue costs (303)

----------------------------------------

Balance, September 30, 2007 33,923,452 $ 2,004 0.92

----------------------------------------

The following table summarizes the outstanding and exercisable warrants at September 30, 2007. Weighted Average Number of Warrants Expiry Date Exercise Price (CAD $)

---------------------------------------------------------------------

15,902,023 November 10, 2009 0.95 18,021,429 January 14, 2012 0.90 ------------------ 33,923,452 ------------------ ------------------ (c) Stock Options A summary of the changes in stock options is presented below: Number of Weighted Average Options Exercise Price (CAD $)

---------------------------------------------------------------------

Balance, December 31, 2006 23,530,000 0.83 Options granted 9,935,000 0.59 Options forfeited (760,000) 0.82

--------------------------------------

Balance, September 30, 2007 32,705,000

0.75

--------------------------------------

(d) Stock-based Compensation

Using the fair value method for stock-based compensation, the Company

calculated stock-based compensation expense for the three and

nine month periods ended September 30, 2007 as $1,107 and $2,855

($706 and $2,450 for the same periods in 2006) for the stock options

vested and/or granted to officers, directors, employees and service providers. Of these amounts, $1,015 and $2,505 ($706 and $2,450 for the same periods in 2006) was charged to earnings and $92 and $350 (nil for the same periods in 2006) were capitalized. The Company determined these amounts using the Black-Scholes option pricing model assuming no dividends were paid. The weighted average fair market value per option granted in the three and nine month periods ended September 30, 2007 and 2006 and the assumption used in their determination were as follows: Three months ended Nine months ended September 30 September 30

---------------------------------------------------------------------

2007 2006 2007

2006

---------------------------------------------------------------------

Weighted average fair value per option $0.31 $0.42 $0.35 $0.46 Risk-free interest rate (%) 4.51 3.66 4.22 3.63 Average volatility (%) 66 63 67 54 Expected life (years) 5 5 5 5 8. SEGMENTED INFORMATION The Company defines its reportable segments based on geographic locations. Nine months ended United September 30, 2007 Albania States Canada Total

---------------------------------------------------------------------

Revenue Oil and gas revenue, net of royalties $ 34,847 $ 153 $ - $ 35,000

-------------------------------------------

Expenses Operating 12,441 189 - 12,630 Sales and transportation 2,850 - - 2,850 General and administrative 1,898 731 2,829 5,458 Interest and bank charges 553 - 553 Interest on term loan 876 - - 876 Stock-based compensation 567 486 1,452 2,505 Depletion, depreciation and accretion 5,875 81 67 6,023

-------------------------------------------

25,060 1,487 4,348

30,985

-------------------------------------------

Segment income (loss) 9,787 (1,334) (4,348) 4,105 -------------------------------- Other income 1,431 Future income tax expense

(5,722)

-------------------------------------------

Loss for the period $

(186)

-------------------------------------------

Assets, September 30,

2007 $ 99,297 $ 75,887 $ 10,468 $

185,652

-------------------------------------------

Additions to property,

plant and equipment $ 37,216 $ 25,937 $ 237 $ 63,390

-------------------------------------------

Cash proceeds from sale of property, plant and equipment $ - $ 15,000 $ - $ 15,000

-------------------------------------------

Nine months ended United September 30, 2006 Albania States Canada Total

---------------------------------------------------------------------

Revenue Oil and gas revenue, net of royalties $ 19,742 $ - $ - $ 19,742

-------------------------------------------

Expenses Operating 8,744 - - 8,744 Sales and transportation 1,581 - - 1,581 General and administrative 1,534 410 1,900 3,844 Stock-based compensation 576 560 1,314 2,450 Depletion, depreciation and accretion 3,099 10 29 3,138

-------------------------------------------

15,534 980 3,243

19,757

-------------------------------------------

Segment income (loss) 4,208 (980) (3,243) (15) -------------------------------- Other income 1,352 Future income tax expense

(2,791)

-------------------------------------------

Loss for the period $

(1,454)

-------------------------------------------

Assets, September 30,

2006 $ 57,415 $ 61,352 $ 8,339 $

127,106

-------------------------------------------

Additions to property,

plant and equipment $ 31,386 $ 23,905 $ 62 $ 55,353

-------------------------------------------

Three months ended United September 30, 2007 Albania States Canada Total

---------------------------------------------------------------------

Revenue Oil and gas revenue, net of royalties $ 14,317 153 - 14,470

-------------------------------------------

Expenses Operating 4,535 33 - 4,568 Sales and transportation 1,068 - - 1,068 General and administrative 757 196 1,022 1,975 Interest and bank charges 242 242 Interest on term loan 338 - - 338 Stock-based compensation 183 235 597 1,015 Depletion, depreciation and accretion 2,113 57 27 2,197

-------------------------------------------

9,236 521 1,646

11,403

-------------------------------------------

Segment income (loss) 5,081 (368) (1,646) 3,067 -------------------------------- Other income 141 Future income tax expense

(2,944)

-------------------------------------------

Income for the period $

264

-------------------------------------------

Additions to property,

plant and equipment $ 13,010 $ 13,053 $ 56 $ 26,119

-------------------------------------------

Three months ended United September 30, 2006 Albania States Canada Total

---------------------------------------------------------------------

Revenue Oil and gas revenue, net of royalties $ 8,185 $ - $ - $ 8,185

-------------------------------------------

Expenses Operating 3,141 - - 3,141 Sales and transportation 728 - - 728 General and administrative 567 195 660 1,422 Stock-based compensation 313 129 264 706 Depletion, depreciation and accretion 1,210 5 11 1,226

-------------------------------------------

5,959 329 935

7,223

-------------------------------------------

Segment income (loss) 2,226 (329) (935) 962 -------------------------------- Other income 56 Future income tax expense

(1,226)

-------------------------------------------

Loss for the period $

(208)

-------------------------------------------

Additions to property,

plant and equipment $ 9,839 $ 2,992 $ 22 $ 12,853

-------------------------------------------

9. RELATED PARTY TRANSACTIONS Bankers contracts with a Canadian drilling company, whose principal shareholder and officer is a Director of Bankers, for the provision of rigs and other oil well services at industry competitive rates. Bankers also incurs legal, rent and office services with companies

related by way of common directors and/or officers. During the three

and nine month periods ended September 30, 2007 and 2006, the company

incurred the following expenses with these parties: Three months ended Nine months ended September 30 September 30

---------------------------------------------------------------------

2007 2006 2007

2006

---------------------------------------------------------------------

Legal fees $16 $33 $243 $296 Rent and office services 14 13 39 42 Rigs and oil well servicing 2,602 2,123 6,998 6,421 At September 30, 2007 and 2006, included in accounts payable and accrued liabilities are the following amounts which are payable to companies related by way of directors and/or officers in common: 2007 2006

---------------------------------------------------------------------

Legal fees $ 25 $ 56 Oil well servicing 1,466 1,145 These transactions, occurring in the normal course of operations, are

measured at the exchange amount, which is the amount of consideration

established and agreed to by the related parties. 10. COMMITMENTS a) Capital Expenditures In March 2006, the Company's Plan of Development for the Patos Marinza heavy oilfield in Albania was approved by Albanian National Agency of Natural Resources (AKBN). Under the Plan of Development submitted to AKBN, the Company estimated the remaining capital expenditures as at January 1, 2007 between $125 million to $183 million during the life of the Patos Marinza project. The estimated capital expenditures during the next five years are as follows: ($ millions) Case I Case II

---------------------------------------------------------------------

2007 38.3 42.2 2008 31.6 29.4 2009 9.5 41.6 2010 10.9 15.5 2011 9.5 10.7 Remaining 25.0 43.9

---------------------------------------------------------------------

124.8

183.3

---------------------------------------------------------------------

The difference between Case I and Case II relates to maximum future production levels. The Petroleum Agreement stipulates that the Company submit to AKBN each year an annual program which includes the nature and the amount of capital expenditures to be incurred in that year. Significant deviations in this annual program from the Plan of Development will be subject to AKBN approval. Disagreements between the parties will

be referred to an independent expert whose decision will be binding.

The Company has the right to relinquish a portion or all of the

contract area. Any relinquishment will reduce the associated capital

expenditure commitments. If only a portion of the contract area is relinquished then the Company will continue to conduct petroleum operations on the portion retained and the future capital expenditures will be adjusted accordingly. The Company spent $37.2 million towards its 2007 commitment during the nine months period ended September 30, 2007. b) Office Premises The Company leases office premises. The minimum lease payments for the next five years are as follows: ($000s)

---------------------------------------------------------------------

2007 $ 90 2008 233 2009 172 2010 172 2011 172 Thereafter 7 ----------- $ 846 ----------- -----------

11. SUPPLEMENTAL CASH FLOW INFORMATION

Three months ended Nine months

ended

September 30 September 30

---------------------------------------------------------------------

2007 2006 2007

2006

---------------------------------------------------------------------

Operating activities (Increase) in decrease in current assets

Accounts receivable $ 1,085 2,232 $ (3,293) (1,001)

Crude oil inventory (209) (255) (506) (255) Deposit and prepaid expenses 431 105 (575) (196) Increase in (decrease) in current liabilities Accounts payable and accrued liabilities (1,113) (44) 364

(1,339)

--------------------------------------------

$ 194 2,038 $ (4,010)

(2,791)

--------------------------------------------

Investing activities (Decrease) increase in current liabilities Accounts payable and accrued liabilities $ 2,961 (1,339) $ 1,539 3,485

--------------------------------------------

Cash and cash equivalents Cash $ 929 3,365 $ 929 3,365 Fixed income investments 7,926 5,638 7,926 5,638

--------------------------------------------

$ 8,855 9,003 $ 8,855

9,003

--------------------------------------------

Interest paid $ 573 - $ 1,422 -

--------------------------------------------

For further information: Susan J. Soprovich, VP, Investor Relations andCorporate Governance, Ph: (403) 513-2681, Email:investorrelations(at)bankerspetroleum.com, Website: www.bankerspetroleum.com;AIM NOMAD: Canaccord Adams Limited, Ryan Gaffney/Adam Janikowski, +44 20 70506500(BNK)

BANKERS PETROLEUM LIMITED

Date		Source	Headline
29th Sep 2016	2:30 pm	PRN	BNK Announces Closing of Plan of Arrangement Transaction
19th Sep 2016	7:00 am	PRN	Employee Stock Savings Plan
9th Sep 2016	5:54 pm	PRN	Bankers Petroleum Approval for Proposed Arrangement
7th Sep 2016	7:00 am	PRN	Block Admission Return
2nd Sep 2016	7:00 am	PRN	Employee Stock Savings Plan - August 31, 2016 Update
1st Sep 2016	7:00 am	PRN	Contract
30th Aug 2016	7:00 am	PRN	Results of the Binding Third-Party Audit
17th Aug 2016	7:00 am	PRN	Director/PDMR Shareholding
11th Aug 2016	12:00 pm	PRN	2016 second quarter financial and operational results
5th Aug 2016	7:00 am	PRN	Bankers Petroleum Announces Q2 2016 Results Date
3rd Aug 2016	7:00 am	PRN	Employee Stock Savings Plan
1st Aug 2016	7:00 am	PRN	Bankers Petroleum - Corporate transaction extension
21st Jul 2016	1:00 pm	PRN	Corporate transaction update
19th Jul 2016	7:00 am	PRN	Employee Stock Savings Plan Update
6th Jul 2016	12:00 pm	PRN	Operational Update for the Second Quarter 2016
5th Jul 2016	7:00 am	PRN	Employee Stock Savings Plan Quarterly Update
22nd Jun 2016	12:00 pm	PRN	Investment Canada Act Approval for Proposed Arrangement
8th Jun 2016	10:00 am	PRN	Corporate Transaction Update
2nd Jun 2016	2:02 pm	PRN	Statement re temporary production shut-in
1st Jun 2016	2:55 pm	PRN	Statement re temporary production impact
1st Jun 2016	7:00 am	PRN	Bankers Petroleum shareholder approval of arrangement
18th May 2016	1:53 pm	PRN	Statement re Possible Offer
10th May 2016	1:40 pm	PRN	Acquisition(s)
5th May 2016	12:00 pm	PRN	1st Quarter Results
29th Apr 2016	7:00 am	PRN	Bankers Petroleum First Quarter Results Date
5th Apr 2016	12:00 pm	PRN	Operational update for the first quarter 2016
5th Apr 2016	7:00 am	PRN	Bankers Employee Stock Savings Plan Quarterly Update
1st Apr 2016	7:00 am	PRN	Bankers Petroleum to release Q1 operational update
29th Mar 2016	7:00 am	PRN	Director/PDMR Shareholding
24th Mar 2016	7:00 am	PRN	Director/PDMR Shareholding
21st Mar 2016	7:00 am	PRN	Acquisition(s)
10th Mar 2016	12:07 pm	PRN	2015 Financial Results
10th Mar 2016	7:00 am	PRN	Block Admission Return
7th Mar 2016	7:00 am	PRN	Notice of Results
2nd Mar 2016	12:00 pm	PRN	Bankers Petroleum Announces 2015 Year-End Reserves
29th Feb 2016	7:00 am	PRN	Bankers Petroleum to release 2015 Reserves Report
24th Feb 2016	2:04 pm	PRN	Government of Albania Agreement
28th Jan 2016	7:00 am	PRN	Re-filing of MD&A for period ended Sept. 30, 2015
7th Jan 2016	12:00 pm	PRN	Operational update for the fourth quarter 2015
6th Jan 2016	7:00 am	PRN	Q4 Employee Stock Savings Plan Quarterly Update
5th Jan 2016	7:00 am	PRN	Fourth Quarter Operational Update
15th Dec 2015	12:00 pm	PRN	2016 Capital Budget and Work Program
9th Dec 2015	7:00 am	PRN	Bankers Petroleum 2016 Capital Budget
7th Dec 2015	7:30 am	RNS	Restoration - Bankers Petroleum Limited
4th Dec 2015	6:02 pm	PRN	BNK reaches agreement to unfreeze Albanian bank accounts
4th Dec 2015	5:29 pm	PRN	Statement re Suspension
4th Dec 2015	3:50 pm	RNS	Suspension - Bankers Petroleum Limited
30th Nov 2015	1:00 pm	PRN	Albanian Government has not Yet Complied with ICC Order
25th Nov 2015	2:02 pm	PRN	Bankers Petroleum Awarded Hungarian Exploration Block
23rd Nov 2015	11:00 am	PRN	Stop order injunction of Albanian tax assessment

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