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Bankers Petroleum Operational Update for the Fourth Quarter 2013 Average Quarterly Production 19,300 bopd CALGARY, Jan. 7, 2014 /CNW/ - Bankers Petroleum Ltd. (Bankers or the Company)(TSX: BNK) (AIM: BNK) is pleased to announce the Company's fourth quarteroperational update. Production, Sales and Oil Prices Average production from the Patos-Marinza oilfield in Albania for the fourthquarter of 2013 was 19,303 barrels of oil per day (bopd), 4.1% higher than18,541 bopd in the third quarter. Average oil production for 2013 was 18,169bopd, 21% higher than 2012 average production of 15,020 bopd. Oil sales during the quarter averaged 19,710 bopd, 7.5% higher than theprevious quarter average of 18,332 bopd. The crude oil inventory at December31, 2013 was 311,000 barrels, 38,000 barrels lower than 349,000 barrels atSeptember 30, 2013. The Patos-Marinza fourth quarter average oil price was approximately $85.71 perbarrel (representing 78% of the Brent oil price of $109.27 per barrel), ascompared with the third quarter average oil price of $86.96 per barrel(representing 79% of the Brent oil price of $110.37 per barrel). The 2013 average oil sales were 18,173 bopd ($85.41 per barrel), an increase of23% from 14,808 bopd ($79.73 per barrel) in 2012. Drilling Update Forty (40) horizontal wells were drilled and rig released during the fourthquarter in the main area of the Patos-Marinza oilfield: thirty-seven (37)horizontal production wells and three (3) horizontal lateral re-drills.Thirty-three (33) of these wells were completed and are on production, and theremaining seven (7) will be placed on production in January pending drillingrig move off the pad, well completion, and facilities build. This brings thetotal number of wells drilled in 2013 to 146. The Company continues to develop the field through pad drilling of multiplezones within the core area of the Patos-Marina oilfield. Five (5) rigs arecurrently drilling with the sixth rig expected to begin drilling in the firstquarter. Secondary and Tertiary Recovery Program The Company continues to monitor and expand upon its water flood and polymerflood patterns, with initial production response in the Lower Driza (D5reservoir sand) expected in the first half of 2014, as the first two polymerinjectors commenced in this zone early last year. Performance of injection hasbeen maintained at target rates with no premature breakthrough of fluids tooffset producers, which is indicative of good reservoir conformance. Reservoirpressure is rising and is following current projection models. In 2013, Bankers implemented three (3) water flood injectors in the UpperMarinza and five (5) polymer flood injectors in three (3) separate Lower Driza(D5, D4, and D3 reservoir sands) in the southern part of the core Patos-Marinzafield. The Company plans to convert up to eight (8) additional wells forpolymer and water injection in the first half of 2014. Infrastructure Development In the fourth quarter of 2013, the Company completed maintenance turnaround ofmajor treating facilities including two (2) trains of the central treatingfacility, as well as one satellite facility. Several cascade tank systems onindividual well pads have been completed and both a new sludge handling andsatellite treating facility are in the final stages of construction and willcommence operation in the first quarter. Through ongoing optimization of the treating process, the Company hassignificantly reduced the diluent blend from 13% of gross sales volume in Q42012 down to 8.5% in Q4 2013 and has improved the sales specification of thecrude oil. In the coming year, Bankers will remain focused on key infrastructure projectsaimed at reducing cost and optimizing operations, including fieldelectrification, flow-lines, sour treatment facilities, tank construction andadditional cascade systems. Government of Albania Fiscal Changes for 2014 The Parliament of Albania approved the State Budget presented by the AlbanianGovernment on December 28, 2013. Included in the fiscal changes are tax lawrelated amendments that pertain to hydrocarbon operations. The Government of Albania has implemented effective January 1, 2014, removal ofexemptions on the Value Added Tax (VAT) of 20% on goods and services related tothe extraction of hydrocarbons. The legislation provides that this VAT will befully reimbursed on a timely basis to the companies by the Albanian Government. The fiscal changes also include potential implementation of Excise Tax onimported petroleum products effective April 1, 2014 for companies operating inthe hydrocarbon sector, which were previously exempt. The Albanian Governmenthas elected to take the next three months to consult with industry members tounderstand the potential impact of the Excise Tax on all parties. "The Company is currently in discussions with officials of the Government ofAlbania to fully assess the implications of this new legislation and to reachan agreement on financial offsets which we are entitled to under our productionagreements. We anticipate these changes will have minimal impact on our ongoingbusiness and plan to move forward with our 2014 capital plan as previouslyreported. We look forward to another successful year and continued robustinvestment in Albania" commented David French, President and Chief ExecutiveOfficer of Bankers Petroleum. Updated Corporate Presentation For additional information on this Operational Update, please see the Company'sJanuary 2014 corporate presentation at www.bankerspetroleum.com. Conference Call The Management of Bankers will host a conference call on January 7, 2014, at 6:30 am MST 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 web browserhttp://www.newswire.ca/en/webcast/detail/1285463/1418203. 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 21, 2014 by dialing 1-855-859-2056 or 1-416-849-0833 and enteringaccess code 30638772. ------------ 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