Bankers Petroleum Announces 2013 Capital Budget and Work Program

Fully Funded US$247 Million Capital Program in Albania 
CALGARY, Dec. 10, 2012 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the 
"Company") (TSX: BNK, AIM: BNK) is pleased to announce its 2013 capital 
program of US$247 million, to be fully funded with funds generated from 
operations. This represents a record annual activity level and takes Bankers 
cumulative capital investment in Albania to over $1 billion. The budget has 
been approved by the Company's Board of Directors and submitted to the 
Albanian authorities for their approval. 
The 2013 capital program will focus on major development activities at the 
Patos-Marinza oilfield including production and reserves growth through new 
horizontal and vertical drilling, reactivation and workover of existing wells 
and implementation of water and polymer flood programs. The Company will also 
direct capital towards associated field infrastructure and progression of our 
thermal program. 
The 2013 work plan will include expansion of the waterflood program and new 
drilling at the Kuçova oilfield as well as exploration drilling in Block F. 
Abby Badwi, President & CEO commented, "Our 2013 capital budget is designed to 
deliver sustainable production growth and to implement the Company's long term 
objectives of increasing reserves through primary, secondary and tertiary 
recovery methods. We will constantly review our projects' economic returns and 
prevailing oil prices to allow for flexibility to expand or contract our 
capital programs to remain funded from our cash flow." 
PATOS-MARINZA FIELD 
Drilling and Reactivation Capital 
With five drilling rigs and a budget of $159 million, the Company intends to 
drill a total of 110 to 120 wells, primarily horizontal production wells, 
along with horizontal lateral re-drills, vertical delineation, core wells, and 
water-injection wells. Approximately 70% to 80% of drilling activities will 
focus on production growth and 20% to 30% of the wells will target new 
reserves through delineation of zones and areas, both within and outside the 
field where no reserves have been booked to date. Reactivation and workover of 
old vertical wells will continue and the $7 million costs associated with 
these activities are included in the drilling budget. 
Water and Polymer Flood Program 
The 2013 budget includes $10 million for implementation of three waterflood 
and one polymer flood patterns, which will be expanded in 2014 and beyond to 
offset field declines and increase recovery of the oil in place. 
Facilities and Infrastructure 
There will be $68 million in capital allocated to facilities and 
infrastructure activities, including: 


    --  construction of additional satellite treatment facilities;
    --  planning for our second leg of the crude oil pipeline, 35
        kilometre route that will connect the central Fier hub loading
        facility to the Vlore Port export terminal;
    --  expanded remediation program targeting over 200 old vertical
        wells;
    --  expansion of water disposal capabilities with two to three new
        water disposal wells; and
    --  continuation of environmental remediation and social
        initiatives.

Thermal Pilot Project

Coring programs and simulation studies will continue throughout the year to 
determine the best location and zone for the next thermal pilot, which could 
lead to future development of the field's large contingent and prospective 
resources. Cost estimates for these activities are included in the 2013 
capital program.

Patos-Marinza Field Study and Production Optimization

The Company recently expanded the scope of its current master service 
agreement with Weatherford International, one of the world's largest oilfield 
services provider, to provide integrated solutions for its various activities 
at Patos-Marinza including but not limited to, artificial lift optimization, 
well construction design and in-depth reservoir geo-mechanics review and 
modeling.

Weatherford's technical experts will be assigned to the project and, in 
cooperation with Bankers' technical team, are expected to enhance our 
operational practices and determine the best technology required to improve 
oil recovery.

The multi-faceted study will be completed in three phases over several 
quarters. The first phase focusing on production optimization recommendations 
will be available for implementation during the first quarter of 2013.

Cost estimates for this project are included in the 2013 capital program.

KUÇOVA FIELD

An additional $7 million will be directed towards the Kuçova oilfield with 
focus on expanding the waterflood pilot project, drilling three new wells and, 
developing localized infrastructure including gathering lines to a centralized 
oil treating facility.

BLOCK F EXPLORATION BLOCK

One exploration well is planned for 2013 in Block F and comprises the majority 
of the $3 million capital expenditure.

CAPITAL PROGRAM FUNDING

Utilizing a $103 Brent oil price forecast ($105 for Q1/Q2 and $100 for Q3/Q4) 
and average price realization of 80% of Brent for Patos-Marinza crude, Bankers 
expects to fully fund the 2013 capital program with funds generated from 
operations.

PRODUCTION GUIDANCE

With this capital program Bankers expects to achieve 10% to 15% annual growth 
from its 2012 average production while continuing to focus capital on reserves 
growth initiatives.

CHANGE TO AIM BROKER

FirstEnergy Capital LLP has been appointed to act as the Company's Broker for 
the London AIM Exchange effective January 1, 2013. FirstEnergy is a leading 
energy-focused bank, providing full-service energy investment banking 
operations.

Canaccord Genuity will continue to act exclusively as our Nominated Advisor 
(NOMAD) to Bankers Petroleum Ltd.

UPDATED CORPORATE PRESENTATION

For additional information on this operational update, please see the December 
2012 version of the Company's corporate presentation at 
www.bankerspetroleum.com.

CONFERENCE CALL

Management of Bankers will host a conference call on December 10, 2012 at 7:00 
am MST to discuss the 2013 Capital Budget. 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 1-647-427-7450. 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/1084587/1181537. 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 December 24, 
2012 by dialing 1-855-859- 2056 or 1-416-849-0833 and entering access code 
78994621.

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 COO 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 petroleum engineer (member of APEGGA) 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. 

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 7023 8000  AIM Joint Brokers Canaccord Genuity 
Limited Henry Fitzgerald-O'Connor +44 20 7023 8000  Macquarie Capital Advisors 
Jeffrey Auld +44 20 3037 5639

SOURCE: Bankers Petroleum Ltd.

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CO: Bankers Petroleum Ltd.
ST: Alberta
NI: OIL FIN CONF 

-0- Dec/10/2012 13:00 GMT