Bankers Petroleum Announces 2013 Capital Budget and Work Program

       Bankers Petroleum Announces 2013 Capital Budget and Work Program

PR Newswire

CALGARY, Dec. 10, 2012

Fully Funded US$247 Million Capital Program in Albania

CALGARY, Dec. 10, 2012 /PRNewswire/ - 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."


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 

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.


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.


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


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 


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.


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 

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


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


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 

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 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 December 24,
2012 by dialing 1-855-859- 2056 or 1-416-849-0833 and entering access code

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 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 

SOURCE Bankers Petroleum Ltd.


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

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
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