Press Releases

Bankers Petroleum Operational Update for the Third Quarter 2012

Average Quarterly Production 15,600 bopd

CALGARY, Oct. 4, 2012 /PRNewswire/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to announce the following third quarter operational update.

Production, Sales and Oil Prices

The average third quarter 2012 production from the Patos-Marinza oilfield in Albania was 15,616 barrels of oil per day ("bopd"), 10% higher than the second quarter average. Oil sales during the quarter averaged 15,715 bopd, 11% higher than the second quarter 2012 average. The crude oil inventory at September 30, 2012 was 301,000 barrels, slightly lower than 305,000 barrels at June 30, 2012.

The Patos-Marinza third quarter average oil price was approximately US$79.48 per barrel (representing 73% of the Brent oil price of US$109.61 per barrel), as compared with the second quarter average oil price of US$76.46 per barrel (71% of the Brent oil price of US$108.19 per barrel).

For the nine months ended September 30, 2012 oil sales were 14,393 bopd (US$80.20 per barrel), an increase of 14% from 12,578 bopd (US$73.26 per barrel) for the comparable 2011 period.

2013 Crude Oil Sales Agreements

The Company is also pleased to report several Patos-Marinza crude oil sales agreements, representing the majority of the export volumes for next year, have been agreed for 2013. These contracts are priced at an average of 81% of the Brent oil benchmark. One contract remains to be priced.

During the third quarter, Bankers completed a financial hedge transaction for the 2013 calendar year, purchasing $80 Brent put options on 4,000 bopd.

Drilling Update

Thirty-five (35) wells have been drilled during the third quarter: Thirty-two (32) horizontal production wells, one (1) lateral re-drill sidetrack well, and two (2) core wells in the southern area of the field. Twenty-six (26) of the horizontal wells have been completed and placed on production with twenty (20) wells averaging 105 bopd, four (4) wells producing with high water cuts and two (2) wells with inflow restrictions. The remaining six (6) wells are currently undergoing completion operations and will be on production over the next several days.

Lateral Re-Drills

Well 5028, drilled in March 2010, was producing at a rate of 70 bopd prior to the liner re-entry failure in late 2011. A sidetrack through the cased section of the wellbore was drilled in late September 2012 as the first lateral re-drill and a new higher grade steel liner with redesigned slot configuration for additional strength was run in the new lateral leg. The well will be placed on production shortly.

Five (5) additional re-drill sidetracks are planned for the fourth quarter to restore production from wells that were shut-in during the last several months due to liner restriction concerns. The second well, 5129, is currently being re-drilled. The cost of a lateral re-drill including equipping with new liner is approximately US$450,000, which is expected to decrease with improved drilling efficiency on future re-drills.

Water Control

Operations are continuing on the water control program with an additional forty-four (44) wellbore suspensions completed in the quarter.  The water control program continues to demonstrate improvement in oil rate and reduced water-cuts in wells and areas affected by water influx issues. Included in the October Corporate Presentation is a summary of performance from 25 wells impacted by this program with water production from these wells reduced by 4,000 barrels per day and the oil/water ratio increased by 100%.

Secondary and Tertiary Recovery Program

The second thermal production cycle at well 5201 has been completed. The steam stimulation mobilized highly viscous oil in the well that was not mobile under cold recovery techniques. The high water saturations in the target zone resulted in high water-cut production from the well and economic recovery was not achieved at this location.  Data from this first pilot, core data from two new wells drilled during the quarter, and additional delineation drilling is being planned in the southern region of the field over the next several months. Results and evaluation of this data will be incorporated in future mapping and modeling to determine the optimum zone and location for expansion of secondary and tertiary development.

Block "F"

The second exploration drilling location in Block "F" is now scheduled to be drilled in the first quarter of 2013.

Albpetrol Privatization

The bid evaluation process for the privatization of the Albanian national oil company "Albpetrol Sh.A" has been completed and it was announced that the U.S. based Vetro Energy and Silk Road consortium's bid of EUR 850 million has been rated as the best offer for Albpetrol, and the Council of Ministers have declared them the winner of the privatization process.

While Bankers' unsuccessful participation in the bid process was disappointing, the value attributed to Albpetrol's assets enhances Bankers oilfields' valuation and also demonstrates the Company's commitment to expand its business activities in Albania.

Updated Corporate Presentation

For additional information on this operational update, please see the October 2012 version of the Company's corporate presentation at

Conference Call

The Management of Bankers will host a conference call on October 4, 2012 at 7:00am MDT to discuss this Operations Update. Following Management's presentation, there will be a question and answer session for analysts and investors.

To participate in the conference call, please contact the conference operator ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7451. A live audio web cast of the conference call will also be available on Bankers website at or by entering the following URL into your web browser 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 available until October 18, 2012 by dialing 1-855-859-2056 or 1-416-849-0833 and entering access code 37934681.

Caution Regarding Forward-looking Information

Information in this news release respecting matters such as the expected future production levels from wells, future prices and netback, work plans, anticipated total oil recovery of the Patos-Marinza and Kuçova oilfields constitute forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.

Exploration for oil is a speculative business that involves a high degree of risk. The Company's expectations for its Albanian operations and plans are subject to a number of risks in addition to those inherent in oil production operations, including: that Brent oil prices could fall resulting in reduced returns and a change in the economics of the project; availability of financing; delays associated with equipment procurement, equipment failure and the lack of  suitably qualified personnel; the inherent uncertainty in the estimation of reserves; exports from Albania being disrupted due to unplanned disruptions; and changes in the political or economic environment.

Production and netback forecasts are based on a number of assumptions including that the rate and cost of well takeovers, well reactivations and well recompletions of the past will continue and success rates will be similar to those rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce at rates similar to the average rate of production achieved from wells recompletions/reactivations/development in the past; continued availability of the necessary equipment, personnel and financial resources to sustain the Company's planned work program; continued political and economic stability in Albania; the existence of reserves as expected; the continued release by Albpetrol of areas and wells pursuant to the Plan of Development and Addendum; the absence of unplanned disruptions; the ability of the Company to successfully drill new wells and bring production to market; and general risks inherent in oil and gas operations.

Forward-looking statements and information are based on assumptions that financing, equipment and personnel will be available when required and on reasonable terms, none of which are assured and are subject to a number of other risks and uncertainties described under "Risk Factors" in the Company's Annual Information Form and Management's Discussion and Analysis, which are available on SEDAR under the Company's profile at

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information and forward looking statements.

Review by Qualified Person

This release was reviewed by Suneel Gupta, Executive Vice President and Chief Operating Officer of Bankers Petroleum Ltd., who is a "qualified person" under the rules and policies of AIM in his role with the Company and due to his training as a professional 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 and production company focused on developing large oil and gas reserves. In Albania, Bankers operates and has the full rights to develop the Patos-Marinza heavy oilfield and has a 100% interest in the Kuçova oilfield, and a 100% interest in Exploration Block "F". Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.

SOURCE Bankers Petroleum Ltd.