BNK.L Regulatory News (BNK)

BANKERS PETROLEUM LIMITED - Operational Update for the First Quarter 2013

PR Newswire

London, April 5

Bankers Petroleum Operational Update for the First Quarter 2013

Average Quarterly Production 16,900 bopd and Credit Facility Extension

CALGARY, April 5, 2013 /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 2013 was 16,916 barrels of oil per day (bopd), 4.7% higher than16,163 bopd in the fourth quarter of 2012. Oil sales during the quarteraveraged 16,605 bopd, 3.6% higher than the previous quarter average of 16,033bopd. The crude oil inventory at March 31, 2013 was 340,000 barrels, 26,000barrels higher than 313,000 barrels at December 31, 2012.

The Patos-Marinza first quarter average oil price was approximately $89.42 perbarrel (representing 80% of the Brent oil price of $112.43 per barrel), ascompared with the 2012 fourth quarter average oil price of $78.53 per barrel(71% of the Brent oil price of $110.08 per barrel).

Drilling Update

Thirty-two (32) horizontal wells were drilled during the first quarter:thirty-one (31) horizontal production wells and one (1) horizontal lateralre-drill well in the main area of the Patos-Marinza field. Twenty-eight (28)of these wells were completed and are on production, and four (4) will beplaced on production this month.

The Company continues to focus horizontal drilling in the primary Drizareservoir zones and has expanded drilling in several Marinza zones withencouraging results. Pattern development drilling for secondary recoverytechniques in the Marinza and Lower Driza zones has also commenced in the firstquarter.

The drilling rig damaged in January has now been repaired and the Company hasfive drilling rigs in operation.

Secondary and Tertiary Recovery Program

The Company commenced preliminary injectivity testing at the first pilotpolymer flood location. Following the test completion, expected within thesecond quarter, progression of the pilot will be sanctioned should resultsmerit further pilot work at this location.

Block "F"

The second exploration drilling location in Block "F" is scheduled to bedrilled in the second quarter of 2013. Lease access has been obtained and siteconstruction will commence shortly.

Infrastructure Development

Expansion of crude oil storage capacity continues at the Central TreatmentFacility ("CTF") in the Patos-Marinza field with construction of an additional12,000 barrel sales tank. Commissioning of the tank is projected this summerand will improve our operational treating capability and storage flexibility.

Credit Facility Update

The International Finance Corporation (IFC) has approved an extension of theCompany's existing credit facility to May 2020, subject to finaldocumentation. No repayments are required until May 2017, at which time thefacility amount will decrease by 25% annually. Additionally, IFC's revolvingloan facility will increase to $60 million from the existing $50 million.Discussions with the European Bank for Construction and Development (EBRD) forcorresponding changes to the existing $50 million revolving loan facility areongoing, with a decision expected shortly. In addition, the existing $20million revolving facility and $1 million term facility from Raiffeisen Bankwill remain in effect.

Updated Corporate Presentation

For additional information on this operational update, please see the April2013 version of the Company's corporate presentation atwww.bankerspetroleum.com.

Conference Call

The Management of Bankers will host a conference call on April, 5 2013 at 6:30am MDT to discuss this Operations Update. Following Management's presentation,there will be a question and answer session for analysts and investors. Mr.David French, Bankers' newly appointed President and CEO will also beparticipating on the call.

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/1136995/1240855

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 19, 2013 by dialing 1-855-859-2056 or 1-416-849-0833 and enteringaccess code 30277987.

Annual General Special Meeting

Bankers Petroleum invites all shareholders to attend its Annual General SpecialMeeting to be held on Tuesday, May 21 at The Metropolitan Centre, CalgaryAlberta. This years' meeting will be held in the Travoli room at 3:00 pm (MST).

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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 COO ofBankers Petroleum Ltd., who is a "qualified person" under the rules andpolicies of AIM in his role with the Company and due to his training as aprofessional petroleum engineer (member of APEGA) with over 20 years'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.

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