BNK.L Regulatory News (BNK)

Bankers Petroleum announces 2013 year-end reserves 232 Million Barrels of Proved plus Probable (2P) Reserves; NPV of US$2.24 billionAverage Production First Quarter to Date 19,700 bopd CALGARY, Feb. 21, 2014 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the"Company") (TSX: BNK, AIM: BNK) is pleased to provide the results of itsDecember 31, 2013, independent reserves evaluation. Evaluations were conductedby RPS Energy Canada Ltd. (RPS) for the Patos-Marinza oilfield, Albania, and byDeGolyer and McNaughton Canada Ltd. (D&M) for the Kuçova oilfield, Albania; andwere prepared in accordance with Canadian National Instrument 51-101 -Standards of Disclosure for Oil and Gas Activities. Total Company Reserves Summary Gross Oil Reserves - Using Forecast Prices (Million barrels) 2013 2012 Patos- Total Patos- Total Marinza Kuçova Albania Marinza Kuçova Albania % Proved Developed Producing 40.3 - 40.3 25.4 - 25.4 59 Developed Non-Producing 0.7 - 0.7 3.0 - 3.0 - Undeveloped 102.3 3.4 105.7 107.6 3.4 111.0 -5 Total Proved (1P) 143.3 3.4 146.7 136.0 3.4 139.4 5 Probable 77.0 8.5 85.5 77.8 8.5 86.3 -1 Total Proved Plus Probable 220.3 11.9 232.2 213.8 11.9 225.7 3(2P) Possible 104.0 21.4 125.4 110.8 21.5 132.3 -5 Total Proved, Probable &Possible (3P) 324.3 33.3 357.6 324.6 33.4 358.0 0 Patos-Marinza Contingent and Prospective Resources (MMbbls - P50) 2013 2012 % Contingent Resource 505 534 -5 Prospective Resource 259 254 2 Total Resources 764 788 -3 Highlights · 1P Reserves after tax value discounted at 10% increased 27% to US$1.2billion (representing CAD$5.27 per share); · 2P Reserves after tax value discounted at 10% increased 20% to US$2.2billion (representing CAD$9.72 per share); · Main drivers for the increased valuation are operationalimprovements, an accelerated drilling program and lower future developmentcosts. Operating costs per unit have decreased with reduction in diluent usage,treating system improvements, reduced energy consumption, and improved pumpperformance; · 2013 Company average production was 18,169 bopd for an annual totalvolume of 6.6 million barrels (4.5% of total proved reserves); · Reserves Life Index for 1P and 2P is 22 years and 35 yearsrespectively; Net Present Value at 10% - After Tax Using Forecast Prices (US$ millions) 2013 2012 % Patos- Kuçova Total Patos- Kuçova Total Marinza Albania Marinza Albania Proved Developed Producing 568 - 568 372 - 372 55 Developed Non-Producing 11 - 11 44 - 44 - Undeveloped 614 23 637 517 26 543 22 Total Proved 1,193 23 1,216 932 26 958 27 Probable 926 98 1,024 793 115 908 13 Total Proved Plus Probable 2,119 121 2,240 1,724 141 1,865 20 Possible 1,003 296 1,299 860 354 1,214 7 Total Proved, Probable &Possible 3,122 417 3,539 2,584 495 3,079 15 Reserves Value CAD$/Share US$/bbl10% Discounted, After Tax 1P reserves $5.27 $8.49 2P reserves $9.72 $9.77 3P reserves $15.36 $9.98 Basic shares outstanding of as of December 31, 2013, were approximately 256million (281 million diluted). Values are based on RPS (Patos-Marinza) and D&M (Kuçova) January 1, 2014, priceforecast tables summarized below: Reserve Auditor Price Decks - Dated Brent BRENT Oil Price Forecast US$/bbl Year RPS D&M 2014 $105.20 $106.00 2015 $100.60 $101.80 2016 $95.80 $101.64 2017 $95.50 $101.51 2018 $97.40 $101.42 2019 $99.40 $101.58 2020 $101.40 $103.61 2021 $103.40 $105.68 2022 $105.40 $107.79 2023 $107.60 $109.95 2024 $109.70 $112.15 2025 +2.0% Thereafter +2.0% Thereafter Patos-Marinza Crude Pricing The average sales price for export sales is approximately 81% of Brent (anincrease of 2% over the 2013 average realized pricing of 79% of Brent). Theaverage realized sales price the Company is receiving for crude oil from thePatos-Marinza and Kuçova oilfields is at a discount to Brent oil. Albanian Fiscal Changes Pursuant to the 2014 Albanian fiscal changes, these reserve reports are basedon the assumption that the Company and Government of Albania will reachagreement on adequate offsets in recognition of the economic stabilizationprovisions of the hydrocarbon agreements and that the previously exempted valueadded tax will be fully reimbursed in a timely manner. Precedent for such anoffset arrangement was established during the 2008 Royalty Tax implementation. Finding and Development Costs (F&D) In the Patos-Marinza 2P development case, the future horizontal well count hasdecreased from 1,085 to 995. The average cost per well is $1.2 million. Total future undiscounted capital costs for Patos-Marinza and Kuçova areprojected to be US$2.2 billion, US$2.3 billion and US$2.5 billion on a 1P, 2Pand 3P basis, respectively. This represents the following F&D costs, calculatedas total future development capital divided by recoverable reserves excludingcurrently developed PDP and PDNP reserves: 2013 2012 F&D Costs US$/bbl US$/bbl 1P reserves $20.45 $20.90 2P reserves $12.08 $12.27 3P reserves $7.85 $8.08 Oil Initially in Place In Patos-Marinza, the Oil Initially in Place ("OIIP") volumes in the reservesarea remain at 2.4 billion barrels and the OIIP outside the reserves arearemains at 2.7 billion barrels in 2013. The Kuçova OIIP resource estimate remains at 297 million barrels. David French, President and CEO commented "The Company is very pleased toannounce an increase in our reserves on the back of a year of record productionin the field. The 2013 reserve report reflects our strategy of engineeringmomentum through drilling efficient, predictable horizontal wells and enhancingthe operating margin of every barrel we produce. These new reserves reflect a20% increase in the net present value of our 2P reserve base and reinforce thestrength of our base business - optimizing the performance of this world classheavy-oil asset." Operational Update Average production for the first quarter to date was 19,700 bopd; this rate is2% higher than the fourth quarter average production of 19,303 bopd. The sixth drilling rig is now in country undergoing final inspection. It willcommence drilling in the first quarter of 2014. Further details, including the February 2014 Corporate Presentation, areavailable on the Company's website www.bankerspetroleum.com. Conference Call Bankers' Management will host a conference call on February 21, 2014 at 6:30 amMST to discuss this reserves report. Following Management's presentation, therewill be a question and answer session for analysts and investors. To participate in the conference call, please contact the conference operatorten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A live audioweb cast of the conference call will also be available on Bankers' website atwww.bankerspetroleum.com or by entering the following URL into your web browserhttp://www.newswire.ca/en/webcast/detail/1301697/1436315. The web cast will be archived two hours after the presentation on the website,and posted on the website for 90 days. A replay of the call will be availableuntil March 07, 2014 by dialing 1-855-859-2056 or 1-416-849-0833 and enteringaccess code 89045312. Caution Regarding Forward-looking Information Information in this news release respecting matters such as the expected futureproduction levels from wells, future prices and netback, work plans,anticipated total oil recovery of the Patos-Marinza and Kuçova oilfieldsconstitute forward-looking information. Statements containing forward-lookinginformation express, as at the date of this news release, the Company's plans,estimates, forecasts, projections, expectations, or beliefs as to future eventsor results and are believed to be reasonable based on information currentlyavailable to the Company. Exploration for oil is a speculative business that involves a high degree ofrisk. The Company's expectations for its Albanian operations and plans aresubject to a number of risks in addition to those inherent in oil productionoperations, including: that Brent oil prices could fall resulting in reducedreturns and a change in the economics of the project; availability offinancing; delays associated with equipment procurement, equipment failure andthe lack of suitably qualified personnel; the inherent uncertainty in theestimation of reserves; exports from Albania being disrupted due to unplanneddisruptions; and changes in the political or economic environment. Production and netback forecasts are based on a number of assumptions includingthat the rate and cost of well takeovers, well reactivations and wellrecompletions of the past will continue and success rates will be similar tothose rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce atrates similar to the average rate of production achieved from wellsrecompletions/reactivations/development in the past; continued availability ofthe necessary equipment, personnel and financial resources to sustain theCompany's planned work program; continued political and economic stability inAlbania; the existence of reserves as expected; the continued release byAlbpetrol of areas and wells pursuant to the Plan of Development and Addendum;the absence of unplanned disruptions; the ability of the Company tosuccessfully drill new wells and bring production to market; and general risksinherent in oil and gas operations. Forward-looking statements and information are based on assumptions thatfinancing, equipment and personnel will be available when required and onreasonable terms, none of which are assured and are subject to a number ofother risks and uncertainties described under "Risk Factors" in the Company'sAnnual Information Form and Management's Discussion and Analysis, which areavailable on SEDAR under the Company's profile at www.sedar.com. There can be no assurance that forward-looking statements will prove to beaccurate. Actual results and future events could differ materially from thoseanticipated in such statements. Readers should not place undue reliance onforward-looking information and forward looking statements. Review by Qualified Person This release was reviewed by Suneel Gupta, Executive Vice President and ChiefOperating Officer of Bankers Petroleum Ltd., who is a "qualified person" underthe rules and policies of AIM in his role with the Company and due to histraining as a professional petroleum engineer (member of APEGA) with over 20years' experience in domestic and international oil and gas operations. About Bankers Petroleum Ltd. Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration andproduction company focused on developing large oil and gas reserves. InAlbania, Bankers operates and has the full rights to develop the Patos-Marinzaheavy oilfield, 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 Officer(403) 513-6930 Doug UrchExecutive VP, Finance and Chief Financial Officer(403) 513-2691 Laura BechtelInvestor Relations Analyst(403) 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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