BNK.L Regulatory News (BNK)

For Immediate Release BANKERS PETROLEUM OPERATIONAL UPDATE FOR THE FOURTH QUARTER 2014 Record Year with 2014 Average Production of 20,687 bopd CALGARY, January 6, 2015- Bankers Petroleum Ltd. (Bankers or the Company) (TSX:BNK, AIM: BNK) is pleased to announce the Company's fourth quarter operationalupdate. Production Bankers achieved 14% growth in 2014 with average production of 20,687 bopdcompared to 2013's average production of 18,169 bopd. For the fourth quarter2014, average production from the Patos-Marinza oilfield in Albania was 20,324bopd. In November, the Company elected to shut-in production from several higherwater-cut wells due to reduced water handling capacity after a disposal pumpfailure. The replacement parts needed for the pump are due to arrive incountry by mid-January and disposal rates will be resumed throughout thebalance of the first quarter. Two additional water disposal wells are plannedin later in 2015 to provide additional water handling capacity. While a large amount of uncertainty around oil prices will have an impact onthe level of capital deployment, Bankers is carefully evaluating the economicreturn of each well in the field on a regular basis. The Company will continueto manage work-over activity and operational practices of marginal volumes inaccordance with the current economic environment. Sales and Oil Prices In 2014, oil sales averaged 20,678 bopd, 14% higher than the average sales in2013. During the fourth quarter, oil sales averaged 20,619 bopd, 6% lower thanthe previous quarter average of 21,992 bopd. Crude oil inventory at December31, 2014 decreased to 315,500 barrels compared to 342,500 barrels at September30, 2014. The Patos-Marinza fourth quarter average oil price was approximately $57.31 perbarrel (representing 75% of Brent oil price of $76.27 per barrel), as comparedwith the third quarter average oil price of $78.55 per barrel (representing 77%of Brent oil price of $101.85 per barrel). Sales to the export market duringthe fourth quarter represented 64% of total sales (net of in-kind royalties),at an average export price of 77% of Brent oil price. Bankers continues to maintain its 2015 hedge program covering 6,000bopd whereby the difference between the monthly Brent price and $80/bblis received within the first week of the following month. For December 2014,the cash settlement represented US$3.3 million. At December 31, 2014, the 2015hedge represented a valuation of US$44 million. Drilling Update In 2014, Bankers drilled a record total of 160 horizontal wells. In the fourthquarter, thirty-nine (39) wells were drilled and rig released: thirty-seven(37) horizontal wells plus one (1) lateral re-drill were in the main area ofthe Patos-Marinza oilfield and the Company's first horizontal well was drilledin Kuçova. Thirty (30) of these wells including the Kuçova well were completedand are on production with the remaining nine (9) to be placed on production inJanuary pending drilling rig move off the pad, well completions and facilitiestie-in. As previously announced, Bankers has chosen to lay down two (2) of its drillingrigs in December, with a third to follow in early January. The Company willcontinue to drill utilizing a three (3) rig program and projects 85 - 90 newhorizontal wells in 2015 pending oil prices. Secondary Recovery Program The polymer flood and water flood patterns in the Patos-Marinza oilfieldcontinue to perform to model expectations from the nineteen (19) polymer andfour (4) water flood patterns installed at the end of the fourth quarter.Reservoir pressure and production response are positive with good reservoirflood conformance. Peak rates are being managed to control draw-down acrossthe laterals of the producers in all patterns to establish stable operatingconditions. Two (2) additional wells were converted to injection in the fourth quarterbringing the total number of implemented patterns to four (4) water floodinjectors in the Upper Marinza (M0 reservoir sand), thirteen (13) polymer floodinjectors in the Lower Driza spread evenly between the D5, D4, and D3 reservoirsands with an additional injector in the D3 sand in the southern region, andsix (6) polymer injectors spread evenly in the three Lower Driza zones in thecentral region of the field. The Company continues to be strongly encouraged by the results to date andplans to move forward with 25 - 30 additional conversions in 2015. Infrastructure Development The field electrification project continued in the northern and central areasof the Patos-Marinza oilfield with the conversion of 68 wells in the fourthquarter. With the good cost savings performance, the electrification programwill carry-on in 2015 with plans to electrify up to 250 wells throughout theyear. Construction of the west water disposal line is over half completed, withcommissioning expected in the first quarter. Construction of the northgathering oil line is scheduled to commence in the first quarter of 2015 withcompletion mid-year. Both projects will target reductions in trucked volumeswithin the field and reduce operating costs over the year. The third gatheringsystem, the west oil flow-line project, has been temporarily deferred under thecurrent oil price environment. Other infrastructure activities include the commissioning of the Satellite 3treating facility, installation of several GOR skids for gas capturing andmeasurement as well as maintenance turnarounds of main treating facilities. Updated Corporate Presentation For additional information on this Operational Update please see the Company'sJanuary 2015 corporate presentation at www.bankerspetroleum.com. Conference Call The Management of Bankers will host a conference call on January 6, 2015, at 6:30 am MDT to discuss this Operational Update. Following Management'spresentation there will be a question and answer session for analysts andinvestors. To participate in the conference call, please contact the conference operatorten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A live audioweb cast of the conference call will also be available on Bankers website atwww.bankerspetroleum.com or by entering the following URL into your webbrowser, http://www.newswire.ca/en/webcast/detail/1467845/1633727. 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 January 20, 2015 by dialing 1-855-859-2056 or 1-416-849-0833 and enteringaccess code 60030326. ------------ 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. For further information, contact: David French President and Chief Executive Officer (403) 513-6930 Doug Urch Executive VP, Finance and ChiefFinancial Officer (403) 513-2691 Laura Bechtel Investor Relations Analyst (403) 513-3428 Email: investorrelations@bankerspetroleum.com Website: www.bankerspetroleum.com AIM NOMAD: Canaccord Genuity Limited Henry Fitzgerald-O'Connor +44 0 207 523 8000 AIM BROKER: FirstEnergy Capital LLP Hugh Sanderson / David van Erp

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