BNK.L Regulatory News (BNK)

Bankers Petroleum Operational Update for the First Quarter 2014 Average Quarterly Production 19,900 bopd CALGARY, April 8, 2014 /CNW/ - Bankers Petroleum Ltd. (Bankers or the Company)(TSX: BNK, AIM: BNK) is pleased to announce the Company's first quarteroperational update. Production, Sales and Oil Prices Average production from the Patos-Marinza oilfield in Albania for the firstquarter of 2014 was 19,911 barrels of oil per day (bopd), 3.2% higher than19,303 bopd in the fourth quarter of 2013. Oil sales during the quarter averaged 18,435 bopd, 6.5% lower than the previousquarter average of 19,710 bopd as a result of the final export cargo of thequarter slipping into the second quarter due to weather delays. The crude oilinventory at March 31, 2014 increased 43% to 444,000 barrels, 133,000 barrelshigher than 311,000 barrels at December 31, 2013. The Patos-Marinza first quarter average oil price was approximately $87.35 perbarrel (representing 81% of the Brent oil price of $108.22 per barrel), ascompared with the fourth quarter average oil price of $85.71 per barrel(representing 78% of the Brent oil price of $109.27 per barrel). Drilling Update Thirty-four (34) wells were drilled and rig released during the first quarterin the main area of the Patos-Marinza oilfield: twenty-nine (29) horizontalproduction wells, three (3) horizontal lateral re-drills and two (2) waterdisposal wells. Twenty-three (23) of these wells were completed and are onproduction, and the remaining nine (9) will be placed on production in Aprilpending drilling rig move off the pad, well completions, and facilities build. The sixth (6) drilling rig spud its first well in the main area of the field onMarch 18, 2014 and rig released in fifteen (15) days. The Company continues tofocus drilling on development through pad drilling of multiple zones within themain area of the Patos-Marina oilfield. The additional rig provides flexibilityto move forward with southern delineation drilling and Kuçova oilfielddevelopment. Secondary Recovery Program The Company continues to expand its secondary recovery program with theconversion of four (4) additional polymer injection wells in the Lower Drizaduring the first quarter along with additional polymer treatment facilities tosupport the expanded program. Bankers continues to monitor the early 2013 waterflood and polymer flood patterns with initial production response expected inthe first half of 2014. Injection performance has been maintained at targetrates with no premature breakthrough of fluids to offset producers which isindicative of good reservoir conformance. Reservoir pressure is rising and isfollowing current projection models. To-date, Bankers has implemented three (3) water flood injectors in the UpperMarinza zone (M0 reservoir sand) and nine (9) polymer flood injectors in three(3) separate Lower Driza zones (D5, D4, and D3 reservoir sands) in the southernpart of the main Patos-Marinza oilfield. The Company plans to convert anadditional three (3) to six (6) wells to injection in the second quarter of2014. Infrastructure Development In the first quarter of 2014, the Company completed maintenance turnaround onthe remaining two (2) trains of the Central Treating Facility. The thirdsatellite treatment facility is in the final stages of construction and will beoperational in the second quarter along with the sludge treatment facilitywhich is nearing completion as well. The Company continues to maintain a diluent blend of approximately 8%, a resultof the improved treating process over the past year. In the coming year, Bankers will remain focused on key infrastructure projectsaimed at reducing costs and optimizing operations, including fieldelectrification, flow-lines, sour treatment facilities, gas gathering andadditional cascade systems. Government of Albania Fiscal Changes for 2014 Over the course of the first quarter, Management of Bankers has been in regulardiscussions with the Government of Albanian with regard to the previouslyannounced fiscal changes and tax law related amendments. The Company hasreceived assurances from the Government that a financial offset will be offeredto mitigate the impact of fiscal changes which were approved at the end of2013. A formal agreement is expected to be finalized in the second quarter of2014. "The Company is encouraged by the progress that has been made and expects toreach a formal agreement with the Government of Albania with regard to anoffset mechanism for Excise Tax which was implemented on April 1, 2014 as wellas other changes included in the 2014 fiscal package. The Company continues tocarry out its 2014 capital program as originally conceived and foresees minimalimpact on our ongoing business with the government assurances. With theaddition of a sixth drilling rig, continued emphasis on margin expansion, andfurther validation of our water and polymer flood programs, Bankers is excitedabout our continued momentum into 2014," commented David French, President andChief Executive Officer of Bankers Petroleum. Updated Corporate Presentation For additional information on this Operational Update, please see the Company'sApril 2014 corporate presentation at www.bankerspetroleum.com. Conference Call The Management of Bankers will host a conference call on April 8, 2014, at 6:30am MDT to discuss this Operational Update. Following Management's presentationthere 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 atwww.bankerspetroleum.com or by entering the following URL into your webbrowser, http://www.newswire.ca/en/webcast/detail/1331909/1471999. 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 April 22, 2014 by dialing 1-855-859-2056 or 1-416-849-0833 and enteringaccess code 23433364. 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 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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