BNK.L Regulatory News (BNK)

Bankers Petroleum announces 2014 capital budget and work program Fully Funded US$313 Million Capital Program in Albania CALGARY, Dec. 12, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the"Company") (TSX: BNK, AIM: BNK) is pleased to announce its 2014 capital programof US$313 million, to be fully funded with funds generated from operations,cash and available credit facilities. This represents a record annual activitylevel for the Company. The budget has been approved by the Company's Board ofDirectors and submitted to the Albanian authorities for their approval. The 2014 capital program will focus on horizontal drilling and expansion of thesecondary recovery program in the Patos-Marinza oilfield. The Company will alsodirect capital towards associated projects including infrastructure andfacilities construction, drilling of core wells in the South area of the field,new development in Kuçova, and exploration for natural gas in Block "F". David French, President & CEO commented, "Our 2014 capital budget extends onBankers three key strategies of disciplined growth through drilling, validationof our enhanced recovery potential, and expanding our operating margins. Wehave put together a balanced spend profile to deliver reliable in-yearproduction growth, and at the same time build on our understanding of the prizeof further development over the next decade." PATOS-MARINZA FIELDPrimary Drilling Capital With the addition of the sixth drilling rig in the first quarter and a budgetof $216 million, the Company intends to drill a total 150 to 170 wells in 2014.This includes horizontal development wells, lateral re-drills, verticaldelineation wells, and core wells. Approximately 90% of drilling activitieswill focus on production growth and 10% of the wells will target new reservesthrough delineation of zones and areas. Included in the drilling budget is $15million for re-activation and work-over of old vertical wells. Water and Polymer Flood Program The 2014 capital program includes $15 million for expansion of polymer andwater flood patterns with up to fourteen (14) injector conversions as well asassociated facilities aimed to offset field declines and increase recovery ofthe oil in place. The Company will continue to evaluate the existing patternsand adjust the secondary recovery plan based on early results, which areexpected in the first half of the year. Facilities, Infrastructure, and Associated Capital A total of $76 million of the 2014 capital program will be allocated tofacilities and infrastructure activities in 2014. Projects include: * construction of additional sales tank storage; * flow lining within the field; * continuation of the water remediation program, as required; * expansion of water disposal capabilities with up to three (3) water disposal wells; and * continuation of environmental remediation and social initiatives. NEW VENTURESKuçova Oilfield The Company plans to spend $4 million on drilling of the first two (2)horizontal wells in the Kuçova oilfield to produce lighter oil and evaluatefurther field development. The budget also includes capital for re-activationof offset vertical wells for data collection and assessment. Block "F" Exploration Block The Company has submitted an application to enter into the second explorationphase of Block "F" for an additional two year period. The capital program for2014 includes $2 million dollars for the acquisition of 20 km2 of 3D seismic,with commitments to drill two (2) exploratory wells in the following year. As apart of the agreement to extend the exploration phase, the Company willrelinquish 25% of the block within the first quarter of 2014. CAPITAL PROGRAM FUNDING Bankers is pleased to announce that 70% of 2014 crude volumes have beencommitted through term contracts to counterparties in the Mediterranean andextending east into Asia at 81% of Dated Brent. Utilizing a $100 per barrel Brent oil price forecast and average pricerealization of 81% of Brent for Patos-Marinza crude, the Company expects tofully fund the 2014 capital program with funds generated from operations, cashand available credit facilities. PRODUCTION GUIDANCE With this capital program the Company expects to achieve 10% to 15% annualgrowth in production from the 2013 average. UPDATED CORPORATE PRESENTATION For additional information on this operational update, please see the December2013 version of the Company's corporate presentation atwww.bankerspetroleum.com. CONFERENCE CALL Management of Bankers will host a conference call on December 12, 2013 at 6:30am MST to discuss the 2014 Capital Budget. Following Management's presentation,there will 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 athttp://www.bankerspetroleum.com or by entering the following URL into your webbrowser http://www.newswire.ca/en/webcast/detail/1277883/1409799. 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 December 26, 2013 by dialing 1-855-859- 2056 or 1-416-849-0833 andentering access code 23976676. 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 French President and Chief Executive Officer (403) 513-6930Doug Urch Executive VP, Finance and Chief Financial Officer (403) 513-2691Laura Bechtel Investor 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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