BNK.L Regulatory News (BNK)

Bankers Petroleum Operational Update for the Second Quarter 2014 Average Quarterly Production 20,630 bopd CALGARY, July 7, 2014 /CNW/ - Bankers Petroleum Ltd. (Bankers or the Company)(TSX: BNK, AIM: BNK) is pleased to announce the Company's second quarteroperational update. Production, Sales and Oil Prices Average production from the Patos-Marinza oilfield in Albania for the secondquarter of 2014 was 20,630 barrels of oil per day (bopd), 3.6% higher than19,911 bopd in the first quarter of 2014. Oil sales during the quarter averaged 21,627 bopd, 17.3% higher than theprevious quarter average of 18,435 bopd, with inclusion of the export cargothat carried over from the first quarter into the first few days of April.Crude oil inventory at June 30, 2014, decreased 20% to 354,000 barrels, 90,000barrels lower than 444,000 barrels at March 31, 2014. The Patos-Marinza second quarter average oil price was approximately $86.68 perbarrel (representing 79% of the Brent oil price of $109.63 per barrel), ascompared with the first quarter average oil price of $87.39 per barrel(representing 81% of the Brent oil price of $108.21 per barrel). For the six months ended June 30, 2014, average oil sales were 20,040 bopd($87.00 per barrel) an increase of 16% from 17,310 bopd ($84.39 per barrel) forthe comparable 2013 period. Drilling Update Forty-two (42) wells were drilled and rig released during the second quarter inthe main area of the Patos-Marinza oilfield: thirty-nine (39) horizontalproduction wells and three (3) horizontal lateral re-drills. Thirty-four (34)of these wells were completed and are on production with the remaining eight(8) to be placed on production in July pending drilling rig move off the pad,well completions and facilities tie-in. The Company continues to focus on development in the main area of thePatos-Marinza oilfield through multi-well pad drilling with six drilling rigscurrently in operation. Secondary Recovery Program Close monitoring continues on the water and polymer flood programs. Allpatterns continue to show positive early stage production trends. Reservoirpressure and production response are rising and following current projectionmodels with injection performance achieving target rates indicative of goodreservoir conformance. 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 thePatos-Marinza oilfield. The Company plans to expand the patterns withconversion of up to an additional ten (10) wells in the second half of the yearwith a projected schedule of three (3) polymer flood injector conversions inthe third quarter, six (6) polymer flood conversions in the fourth quarter, andone (1) water flood conversion in the fourth quarter. Procurement of mixing and pumping equipment is underway to support theexpansion along with construction of pipelines to move polymer solution andemulsion between central mixing and treating locations to pad locations forimproved efficiency and cost effectiveness. Infrastructure Development In the second quarter of 2014, the Company commenced disposal in two (2) waterdisposal wells drilled in the first quarter and commenced operation of the newsludge treatment facility. Three (3) well pads in the northern and centralareas of the Patos-Marinza oilfield have been electrified with two (2) padscompleted in the second quarter. An additional four to six (4 to 6) pads areprojected to be electrified in the second half of the year. Emulsion gathering projects in the northern and western areas of the main fieldare progressing with construction projected to start this summer for completionin the first quarter of next year. This will significantly reduce the in-fieldtrucked volume costs by $0.40 to $0.50 per barrel over the next year. Bankers remains focused on key infrastructure projects aimed at reducing costsand optimizing operations including diluent reduction, improved emulsiontreating, expansion of the flow-line system, sour treatment facilities and gasgathering. Updated Corporate Presentation For additional information on this Operational Update please see the Company'sJuly 2014 corporate presentation at www.bankerspetroleum.com. Conference Call The Management of Bankers will host a conference call on July 7, 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/1379735/1530353. 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 July 21, 2014, by dialing 1-855-859-2056 or 1-416-849-0833 and enteringaccess code 67552347. 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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