BNK.L Regulatory News (BNK)

Bankers Petroleum Announces Revised 2015 Capital Budget and Work Program Fully Funded US$153Million Capital Program CALGARY, Jan. 30, 2015 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the"Company") (TSX: BNK, AIM: BNK) announces its revised 2015 capital program ofUS$153 million (all amounts referenced below are in US dollars), reduced fromthe previously announced 2015 capital program of $218 million. Theseadjustments have been made to ensure 2015 spending fits within funds generatedfrom operations and cash resources in the latest oil price environment. Therevised budget has been approved by the Company's Board of Directors and willbe submitted to the Albanian authorities for their approval. David French, President and CEO, commented, "We believe it is prudent withtoday's commodity outlook to show capital discipline and preserve our strongbalance sheet. Our project portfolio is flexible enough to allow us to chooseour pace and scale of development as appropriate. This revised budget reflectsour rigorous focus on capital and operating cost efficiency with a balance ofboth short term drilling execution and long term flood expansion of the field." CAPITAL PROGRAM FUNDING The revised 2015 capital program utilizes a $50 per barrel average annual Brentoil price forecast in comparison to the budget announced on December 12, 2014,which was predicated on an annual Brent oil price forecast of $70 per barrel.The Company expects to fully fund the $153 million capital program with fundsgenerated from operations and cash resources. PATOS-MARINZA FIELD Primary Development The revised capital program includes $80 million to be spent on the drilling,completion and associated costs of approximately 60 new horizontal wells. Thenumber of active drilling rigs will be reduced from three rigs down to twowithin 30 days. Enhanced Oil Recovery: Polymer Flood Expansion The revised program includes $28 million for the accelerated EOR program. Thisprogram allows for the conversion of up to 20 existing production wells topolymer injection throughout the year, as well as the associated facilities andinfrastructure to support the acceleration of the EOR program. This representsa reduction from the 25 - 30 conversions in the previously announced budget. Facilities, Infrastructure, and Associated Capital A total of $45 million of the 2015 capital program will be allocated tofacilities and infrastructure activities. Projects include: * well servicing and work overs; * flow lining within the field; * electrification of well pads; * expansion of water disposal capabilities with one (1) water disposal well; and * continuation of environmental remediation and social initiatives. PRODUCTION GUIDANCE Based on the revised 2015 capital expenditures, Bankers anticipates its 2015average production levels will decrease from its average 2014 production levelsby approximately 5% on account of reduced drilling activity and shut-in volumesdue to marginal economics. FINANCIAL RESILIENCE Bankers maintains a strong balance sheet with a cash position of approximately$73 million at December 31, 2014, as well as a hedge which represents 6,000bopd at $80 per barrel Brent for 2015. Inclusive of the January realization,the hedge valuation is currently in excess of $60 million. Management willcontinue to protect the financial position of the Company with the strategicview to maintain capital expenditures within 2015 cash flow, supplemented withcash resources. At December 31, 2014, Bankers had drawn $104 million from its$224 million credit facilities; no additional draws are anticipated in 2015. UPDATED CORPORATE PRESENTATION For additional information on this operational update, please see the Company'supdated January 2015 corporate presentation at www.bankerspetroleum.com. 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. David French, President and Chief Executive Officer, (403) 513-6930; Doug Urch,Executive VP, Finance and Chief Financial Officer, (403) 513-2691; LauraBechtel, Investor Relations Analyst, (403) 513-3428; Email:investorrelations@bankerspetroleum.com; Website: www.bankerspetroleum.com; AIMNOMAD: Canaccord Genuity Limited, Henry Fitzgerald-O'Connor, +44 0 207 5238000; AIM BROKER: FirstEnergy Capital LLP, Hugh Sanderson / David van Erp, +440 207 448 0200