Bankers Petroleum announces 2012 financial results 
16% increase in Oil Sales and 30% increase in Cash Flow 
CALGARY, March 15, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2012 Financial
In 2012, Bankers accomplished several key achievements including record
production and cash flow.  The Company also invested $222.7 million in capital
expenditures during 2012. 
Results at a Glance (US$000, except as noted)                               

                                   Year ended December 31                  
                                   2012                2011        (%)     

Oil revenue                        432,138             339,918     27       
Net operating income               218,246             169,653     29       
Net income                         34,413              35,996      (4)      
Per share - basic ($)           0.136               0.146       (7)      

            - diluted ($)          0.136               0.141       (4)     

Funds generated from operations    192,589             147,940     30       
Per share - basic ($)           0.763               0.559       36       
Capital expenditures               222,663             242,754     (8)      


Average sales (bopd)               14,808              12,784      16       
Average price ($/barrel)           79.73               72.84       9        
Netback ($/barrel)                 40.27               36.36       11       

                                      December 31                          
                                               2012                2011    

Cash and deposits                              38,740              54,013   
Working capital                                88,799              80,282   
Total assets                                   825,816             661,216  
Long-term debt                                 97,158              46,692   
Shareholders' equity                           483,032             412,679  


2012 Highlights:

·         Average oil production was 15,020 barrels of oil per day (bopd) 15%
higher than 2011 average production of 13,051 bopd.

·         Oil sales averaged 14,808 bopd, compared to 12,784 bopd in 2011, an
increase of 16%, primarily as a result of the Company's ongoing horizontal
drilling program along with continuation of well reactivations.

·         Revenue increased by 27% to $432.1 million ($79.73/bbl) from $339.9
million ($72.84/bbl) in 2011.  Field price realization represented 71% of the
Brent oil price ($112/bbl) as compared to 65% of the Brent price ($111/bbl) in

·         Royalties to the Albanian Government and related entities were $78.4
million, 23% higher than $63.9 million for 2011.

·         Operating and sales and transportation costs, originating from
Albanian-based companies and their employees, were $135.5 million, compared
with $106.3 million for 2011.

·         The Company recorded net operating income (netback) of $218.2 
($40.27/bbl), an increase of 29% compared to $169.7 million ($36.36/bbl) in

·         Funds generated from operations were $192.6 million, a 30% increase
compared to $147.9 million for 2011.  The fourth quarter of 2012 represents the
first time that funds generated from operations of $53.0 million, nearly
covered capital expenditures of $53.8 million.

·         The Original Oil in Place (OOIP) resource assessment in Albania at
year-end was 5.4 billion barrels compared to 8.0 billion barrels in 2011. 
Reserves on a proved basis were 139.4 million barrels compared to 172.4 million
barrels in 2011.  On a proved plus probable basis, reserves were 225.7 million
barrels compared to 267.1 million barrels in 2011.  The corresponding net
present value (NPV) after tax (discounted at 10%) of the proved plus probable
reserves was $1.9 billion at year-end compared to $2.0 billion in 2011.

·         Capital expenditures were $222.7 million compared to $242.8 million
in 2011.  A total of 128 wells were drilled, including 112 horizontal
production wells, seven lateral re-drills, four vertical core delineation
wells, and four water disposal wells in the Patos-Marinza field, plus one
exploration well in Block "F".  In 2011, 84 total wells were drilled.

·         Several Patos-Marinza crude oil sales agreements, representing the
majority of the export volumes for 2013 are priced at an average of 80% of the
Brent oil benchmark, an increase of 14% over the 2012 oil price of 71% of Brent

·         Data collection and analysis for secondary and enhanced recovery
planning continued in 2012 with the objective to identify the most suitable
reservoir layers and areas of the field to initiate water flood, polymer flood
and enhanced oil recovery programs, starting in 2013.

·         With data collected from the first thermal pilot and additional
information including special core analysis of the expanded 2012 coring
program, prospect areas are being selected and evaluated to design a second
thermal pilot.

·         Block "F" contains several seismically defined structural and
amplitude anomalies prospective for oil and natural gas.  The first exploration
well was drilled in 2012 and the second exploration location has been selected
and site construction is underway and this well is expected to spud in the
second quarter of 2013.

·         The central treatment facility (CTF) is being expanded with
construction of third crude oil sales tank to increase storage capacity and
improve operational flexibility in the Patos-Marinza field.

·         Planning and construction for a new satellite facility in the
north-central area of the field is also underway for scheduled completion in
the third quarter of 2013.  This facility, along with additional cascade
treating facilities and in-field flow-lines, will improve crude oil treating
performance in the field.

·         Planning and application to gain preliminary approvals for the 
phase of the crude oil sales pipeline, extending 35 kilometer from Fier to the
export terminal at Vlore, is underway and will continue through 2013.

·         Environmental legacy clean-up as part of the water control program
continues to improve the condition of the oilfield and demonstrate improvement
in oil rates and reduced water-cuts in wells and areas affected by water influx
issues.  Over 220 existing wells were isolated in 2012.

·         The Company has initiated design and construction of a commercial
scale sludge treatment operation to help reclaim oil from the sludge on old
leases and from ecological pits in the production area as part of on-going
lease clean-up activities.

·         The Company continues to maintain a strong financial position at
December 31, 2012 with cash of $38.7 million and working capital of $88.8
million.  Cash and working capital for December 31, 2011 was $54.0 million and
$80.3 million, respectively.

·         The Company is in the final approval stages regarding its credit
facility expansion with the International Finance Corporation (IFC) and
European Bank for Reconstruction and Development (EBRD), its existing
reserve-based lenders.  It is expected that the new credit facility will
envelope the existing $110 million facility, resulting in a new facility having
similar terms as the original.  The original 2009 facility had a six-year term
with repayments scheduled in the latter three years.

·         In August 2012, the Company entered into a financial commodity
contract representing 4,000 bopd at a floor price of $80/bbl Brent for 2013.

·         The Company continues to challenge assessments from the Albanian
Government Tax Directorate through the Albanian Courts.  In addition to the
success in setting aside a recently introduced separate assessment of excise
tax on the Company's importation and use of diluent, over the past few months,
the Courts have ruled in favor of Bankers for all other cases heard, including
the carbon and circulation taxes on diluent imports, which resulted in recent
assessments to the Company totalling over $17 million.  The Company is now
preparing to continue its defense from various levels of appeals.

Operational Update

First quarter 2013 year-to-date average production is 16,850 bopd.  Bankers
intends to issue the first quarter 2013 operational update and host conference
call on Friday, April 5, 2013.


The Company's capital program in 2013 will be $247 million, fully funded from
projected cash flow based on an average $102.50 Brent oil price. The work
program and budget will include the following:

·         Drilling of approximately 120 horizontal and vertical wells with
70-80% of the wells focused on increasing production and 20-30% focused on data
collection for improved secondary and tertiary recovery techniques in the
Patos-Marinza oilfield.

·         Continuing the water control and environmental clean-up program with
over 200 legacy vertical well isolations to improve new well performance and
expanding water disposal capacity with additional wells.

·         Initiating water flood and polymer flood operations and drilling
additional core wells for assessing future thermal development plans.

·         Progressing with social and environmental impact assessments and
preliminary approvals for construction of the 35 kilometer second phase of the
70,000 bopd crude oil sales pipeline from the Fier Hub to the Vlore export

·         Drilling new wells and expanding water flood activities at the 

·         Drilling an exploration well on Block "F" and identification of
further prospects.

·         Continuing with the environmental stewardship and social initiatives
in our area of operations.

Supporting Documents

The full Management Discussion and Analysis (MD&A), Financial Statements and
updated March corporate presentation are available on
The MD&A and Financial Statements will also be available on
    BANKERS PETROLEUM LTD.                                                          
    FOR THE YEARS ENDED DECEMBER 31                                                 
    (Expressed in thousands of US dollars, except per share amounts)                
                                                                2012         2011   

Revenues                                                  $ 432,138    $ 
Royalties                                                   (78,361)     

    Realized loss on financial commodity contracts              (6,588)      -      

Unrealized gain (loss) on financial commodity contracts     556          

    Operating expenses                                          77,953       60,864 
    Sales and transportation expenses                           57,578       45,460 
    General and administrative expenses                         16,050       13,773 
    Depletion and depreciation                                  65,937       40,367 
    Share-based payments                                        11,205       11,041 


    Net finance expense                                         19,594       6,223  
    Income before income tax                                    99,428       95,345 

Deferred income tax expense                                 (65,015)     

    Net income for the year                                     34,413       35,996 
    Other comprehensive income                                                      
                  Currency translation adjustment               953          315    
    Comprehensive income for the year                         $ 35,366     $ 36,311 
    Basic earnings per share                                  $ 0.136        0.146  
    Diluted earnings per share                                $ 0.136      $ 0.141  

BANKERS PETROLEUM LTD.                                       
AS AT DECEMBER 31                                            
(Expressed in thousands of US dollars)                       



                                      2012           2011   

Current assets                                               
  Cash and cash equivalents  $       33,740       $  49,013  
  Restricted cash                    5,000           5,000   
  Accounts receivable                35,603          56,006  
  Inventory                          23,517          14,412  
  Deposits and prepaid               30,265          17,463 
  Financial commodity                                       
  contracts                          1,550           3,684   

                                     129,675         145,578

Non-current assets                                           
  Long-term receivable               11,150          -       
  Property, plant and                                       
  equipment                          681,399         514,184 
  Exploration and evaluation                                
  assets                             3,592           1,454   

                             $       825,816      $  661,216

Current liabilities                                          
  Accounts payable and                                      
  accrued liabilities        $        38,787       $ 52,109  
  Current portion of                                        
  long-term debt                      2,089          13,187  

                                      40,876         65,296 

Non-current liabilities                                      
  Long-term debt                      97,158         46,692  
  Decommissioning obligation          16,747         13,561  
  Deferred tax liabilities            188,003        122,988 

                                      342,784        248,537

SHAREHOLDERS' EQUITY                                         
  Share capital                      334,764         318,021 
  Warrants                           -               1,540   
  Contributed surplus                69,435          49,651  
  Currency translation                                      
  reserve                            7,362           6,409   
  Retained earnings                  71,471          37,058  

                                     483,032         412,679
                             $       825,816      $  661,216

BANKERS PETROLEUM LTD.                                                           


CONSOLIDATED STATEMENTS OF CASH FLOWS                                            


FOR THE YEARS ENDED DECEMBER 31                                                  


(Expressed in thousands of US dollars)                                           


Cash provided by (used in):                                                      


Operating activities                                                             


  Net income for the year                                     $ 34,413      $ 
  Depletion and depreciation                                    65,937        
  Amortization of deferred financing costs                      -             
  Accretion of long-term debt                                   4,791         
  Accretion of decommissioning obligation                       829           
  Unrealized foreign exchange loss                              636           
  Deferred income tax expense                                   65,015        
  Share-based payments                                          11,205        
  Discount of long-term receivable                              7,629         -  


  Realized loss on financial commodity contracts                6,588         -  


  Unrealized (gain) loss on financial commodity contracts       (556)         
  Cash premiums paid for financial commodity contracts          (3,898)       


  Change in long-term receivable                                (18,779)      -  


  Change in non-cash working capital                            (12,064)      


Investing activities                                                             


  Additions to property, plant and equipment                    (220,525)     
  Additions to exploration and evaluation assets                (2,138)       
  Restricted cash                                               -             
  Change in non-cash working capital                            (2,762)       


Financing activities                                                             


  Issue of shares for cash                                      13,555        
  Financing costs                                               (750)         
  Increase in long-term debt                                    35,537        
  Share issue costs                                             -             


Foreign exchange gain (loss) on cash and cash equivalents       64            
Decrease in cash and cash equivalents                           (15,273)      
Cash and cash equivalents, beginning of year                    49,013        
Cash and cash equivalents, end of year                        $ 33,740      $ 


Interest paid                                                 $ 4,788       $ 
Interest received                                             $ 438         $ 


BANKERS PETROLEUM LTD.                                                           


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                      


(Expressed in thousands of US dollars, except number of common shares)           

              Number of                                           Currency      

          common        Share                   Contributed   translation   
          shares        capital     Warrants    surplus       reserve       
  earnings   Total     
Balance at                    309,379                   28,135    $             
$ 1,062      $ 346,267
31, 2010      244,794,990   $           $ 1,597     $               6,094        


Share-based                   -                         24,485                  
  -            24,485 
payments      -                           -                         -            


Options                       8,348                     (2,969)                 
  -            5,379  
exercised     2,728,446                   -                         -            


Warrants                      461                       -                       
  -            404    
exercised     174,333                     (57)                      -            


Share issue                   (167)                     -         -             
  -            (167)  
costs         -                           -                                      


Net income                    -                         -         -             
  35,996       35,996 
for the                                                                          
year          -                           -                                      


Currency                      -                         -                       
  -            315    
adjustment    -                           -                         315          


Balance at                    318,021                   49,651    $             
$ 37,058     $ 412,679
31, 2011      247,697,769   $           $ 1,540     $               6,409        


Share-based                   -                         21,432                  
  -            21,432 
payments      -                           -                         -            


Options                       4,147                     (1,655)                 
  -            2,492  
exercised     1,457,890                   -                         -            


Warrants                      12,596                    -                       
  -            11,063 
exercised     4,672,991                   (1,533)                   -            


Warrants                      -                         7                       
  -            -      
expired       -                           (7)                       -            


Net income                    -                         -                       
  34,413       34,413 
for the                                                                          
year          -                           -                         -            


Currency                      -                         -                       
  -            953    
adjustment    -                           -                         953          


Balance at                    334,764                   69,435    $             
$ 71,471     $ 483,032
31, 2012      253,828,650   $           $ -         $               7,362        


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.

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


Canaccord Genuity Limited
Henry Fitzgerald-O'Connor
+44 0 207 523 8000

FirstEnergy Capital LLP
Hugh Sanderson / David van Erp
+44 0 207 448 0200

(BNK. BNK)                                                                     

-0- Mar/15/2013 12:00 GMT
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