BANKERS PETROLEUM LIMITED: Operational Update

Bankers Petroleum Operational Update for the Third Quarter 2012 
Average Quarterly Production 15,600 bopd 
CALGARY, Oct. 4, 2012 /CNW/ - 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 
www.bankerspetroleum.com. 
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 
http://www.bankerspetroleum.com or by entering the following URL into your web
browser http://www.newswire.ca/en/webcast/detail/1035793/1124281. 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 www.sedar.com.  
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. 
For further information: 
Abby Badwi
President and Chief Executive Officer
(403) 513-2694 
Doug Urch
Executive VP, Finance and Chief Financial Officer
(403) 513-2691 
Mark Hodgson
VP, Business Development
(403) 513-2695 
Email: investorrelations@bankerspetroleum.com 
Website: www.bankerspetroleum.com 
AIM NOMAD:
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor
+44 20 7523 8000 
AIM JOINT BROKERS:
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor
+44 20 7523 8000 
Macquarie Capital Advisors
Paul Connolly
+44 20 3037 5639 
(BNK.)                                                                          
                                                                            

END 
-0- Oct/04/2012 12:00 GMT
 
 
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