Bankers Petroleum announces 2012 financial results

              Bankers Petroleum announces 2012 financial results

PR Newswire

CALGARY, March 15, 2013

16% increase in Oil Sales and 30% increase in Cash Flow

CALGARY, March 15, 2013 /PRNewswire/ - Bankers Petroleum Ltd. ("Bankers" or
the "Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2012 Financial
Results.

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$000, except as noted)                        
                                       Year ended December 31          
                                                               Change
                                         2012            2011        (%)
Oil revenue                           432,138        339,918        27
Net operating income                  218,246        169,653        29
Net income                             34,413         35,996       (4)
      Per share - basic ($)            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 2011.

  *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 million
    ($40.27/bbl), an increase of 29% compared to $169.7 million ($36.36/bbl)
    in 2011.

  *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 oil.

  *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 second
    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.

Outlook

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 terminal.
  *Drilling new wells and expanding water flood activities at the Kuçova
    oilfield.
  *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
www.bankerspetroleum.com. The MD&A and Financial Statements will also be
available on www.sedar.com.

       
                           BANKERS PETROLEUM LTD.
              CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                      FOR THE YEARS ENDED DECEMBER 31
      (Expressed in thousands of US dollars, except per share amounts)
                                                                 
                                                         2012        2011
                                                                  
Revenues                                             $  432,138   $  339,918
Royalties                                              (78,361)    (63,941)
                                                        353,777     275,977
Realized loss on financial commodity contracts          (6,588)           -
Unrealized gain (loss) on financial commodity                 
contracts                                                   556     (2,904)
                                                     347,745    273,073
                                                                     
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
                                                        228,723     171,505
                                                     119,022    101,568
                                                                 
Net finance expense                                      19,594         6,223
                                                               
Income before income tax                                99,428       95,345
Deferred income tax expense                            (65,015)      (59,349)
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.
              CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                            AS AT DECEMBER 31
                  (Expressed in thousands of US dollars)

                                  ASSETS
                                                     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 expenses                      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
                                                                  
                           LIABILITIES                                
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)
                                                                        
                                                       2012        2011
Cash provided by (used in):                                           
Operating activities                                                  
 Net income for the year                         $    34,413  $    35,996
 Depletion and depreciation                          65,937      40,367
 Amortization of deferred financing costs                 -         734
 Accretion of long-term debt                          4,791       2,555
 Accretion of decommissioning obligation                829         460
 Unrealized foreign exchange loss                       636       1,122
 Deferred income tax expense                         65,015      59,349
 Share-based payments                                11,205      11,041
 Discount of long-term receivable                     7,629           -
 Realized loss on financial commodity                  6,588  
  contracts                                                                -
 Unrealized (gain) loss on financial commodity         (556)  
  contracts                                                            2,904
 Cash premiums paid for financial commodity          (3,898)  
  contracts                                                          (6,588)
                                                    192,589     147,940
 Change in long-term receivable                    (18,779)           -
 Change in non-cash working capital                (12,064)    (15,743)
                                                    161,746     132,197
Investing activities                                                  
 Additions to property, plant and equipment       (220,525)   (241,300)
 Additions to exploration and evaluation             (2,138)  
  assets                                                             (1,454)
 Restricted cash                                          -     (3,500)
 Change in non-cash working capital                 (2,762)       6,786
                                                  (225,425)   (239,468)
Financing activities                                                  
 Issue of shares for cash                            13,555       5,783
 Financing costs                                      (750)        (30)
 Increase in long-term debt                          35,537      44,543
 Share issue costs                                        -       (167)
                                                     48,342      50,129
Foreign exchange gain (loss) on cash and cash                 
equivalents                                                  64         (464)
Decrease in cash and cash equivalents               (15,273)    (57,606)
Cash and cash equivalents, beginning of year          49,013     106,619
Cash and cash equivalents, end of year            $    33,740  $    49,013
                                                                     
Interest paid                                     $     4,788  $     2,362
Interest received                                 $       438  $       574
                                                           

          
                                        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     Retained
                shares       capital    Warrants     surplus       reserve       earnings     Total
Balance at                  309,379                   28,135     $          $    1,062  $ 346,267
December
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
translation
adjustment              -                    -                       315
Balance at                  318,021                   49,651     $          $   37,058  $ 412,679
December
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
translation
adjustment              -                    -                       953
Balance at                  334,764                   69,435     $          $   71,471  $ 483,032
December
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 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.

SOURCE Bankers Petroleum Ltd.

Contact:

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 0 207 523 8000

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