Bankers Petroleum Announces 2013 Third Quarter Financial and Operational Results

   Bankers Petroleum Announces 2013 Third Quarter Financial and Operational
                                   Results

PR Newswire

CALGARY, Nov. 8, 2013

Accumulated Free Cash Flow of $32 Million and Q4 Average Production to Date
19,050 bopd

CALGARY, Nov. 8, 2013 /PRNewswire/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2013 third quarter
financial and operational results. During the quarter, Bankers achieved its
third consecutive quarter of free cash flow and record production levels.

                                 Three months ended        Nine months ended
Results at a Glance                 September 30              September 30
($000s, except as noted)     2013          % change                         %
                                      2012               2013    2012  change
Financial                                                              
  Oil revenue           146,665  115,054      27%   411,065 316,309     30%
  Net operating income   82,725   58,159      42%   225,032 158,882     42%
  Net income             19,507   12,274      59%    46,708  31,292     49%
          Per - basic                                          0.12     50%
          share ($)          0.08     0.05      60%      0.18
              - diluted                                        0.12     50%
               ($)          0.08     0.05      60%      0.18
  Funds generated from          48,308 ^
    operations ^           71,074               47%   198,210 139,539     42%
          Per - basic                                          0.55     42%
          share ($)          0.28     0.19      47%      0.78
  Capital expenditures   66,199   53,526      24%   165,915 168,859    (2%)
Operating                                                              
  Average sales (bopd)   18,332   15,715      17%    17,655  14,393     23%
  Average price                    79.58
    ($/barrel)              86.96                9%     85.29   80.21      6%
  Netback ($/barrel)      49.05    40.23      22%     46.69   40.29     16%
  Average Brent oil               109.50
    price ($/barrel)       110.29                1%    108.46  112.21    (3%)
                                                                       
                                   September 30,
                                              2013 December 31, 2012 % change
Cash and deposits                         40,659            38,740       5%
Working capital                          121,973            88,799      37%
Total assets                             971,587           825,816      18%
Long-term debt                            98,153            97,158       1%
Shareholders' equity                     542,655           483,032      12%

Highlights for the quarter and nine months ended September 30, 2013 are:

  *Average oil production for the three months ended September 30, 2013 was
    18,541 barrels of oil per day (bopd), 4% higher as compared to 17,886 bopd
    in the second quarter of 2013 and 19% higher than 15,616 bopd in the third
    quarter of 2012. Average oil production for the fourth quarter to-date is
    approximately 19,050 bopd.
  *Oil sales averaged 18,332 bopd for the third quarter of 2013, an increase
    of 2% compared to 18,008 bopd for the previous quarter and 17% compared to
    15,715 bopd for the third quarter of 2012. For the nine months ended
    September 30, 2013, oil sales were 17,655 bopd, an increase of 23%
    compared to 14,393 bopd for the comparable 2012 period.
  *Revenue was $147 million ($86.96/bbl) for the third quarter of 2013, an
    increase of 11% compared to $132 million ($80.45/bbl) in the previous
    quarter and an increase of 27% from $115 million ($79.58/bbl) in the third
    quarter of 2012. Revenue for the third quarter of 2013 represented 79% of
    the Brent oil price of $110/bbl, compared to 79% of the Brent oil price of
    $102/bbl in the previous quarter and 73% of the Brent oil price of
    $110/bbl in the third quarter of 2012.
  *For the third quarter of 2013, royalties to the Albanian Government and
    related entities were $25 million (17% of revenue) compared to $22 million
    (16% of revenue) in the previous quarter and $23 million (20% of revenue)
    for the same quarter of 2012. Total royalties were $70 million (17% of
    revenue) and $60 million (19% of revenue) for the nine months ended
    September 30, 2013 and 2012, respectively.
  *For the three and nine months periods ended September 30, 2013, operating,
    sales and transportation costs, originating from Albanian-based companies
    and their employees, were $39 million and $116 million, respectively,
    compared to $34 million and $98 million for the comparable periods of
    2012.
  *The Company recorded net operating income (netback) of $83 million
    ($49.05/bbl) in the third quarter of 2013, a 20% increase from $69 million
    ($42.19/bbl) in the previous quarter and 42% from $58 million ($40.23/bbl)
    in the third quarter of 2012. For the nine months ended September 30,
    2013, net operating income was $225 million ($46.69/bbl), a 42% increase
    compared to $159 million ($40.29/bbl) in the comparable 2012 period.
  *For the third quarter of 2013, funds generated from operations were $71
    million, a 15% increase compared to $62 million for the previous quarter
    and a 47% increase compared to $48 million for the same period of 2012.
  *Capital expenditures were $66 million in the third quarter of 2013. The
    Company drilled 34 wells during the quarter, comprised of 32 horizontal
    production wells and two horizontal lateral re-drill wells in the main
    area of the Patos-Marinza field. Capital expenditures were $52 million
    and $54 million for the previous quarter and the same period in 2012,
    respectively.
  *The Company continues to maintain a strong financial position at September
    30, 2013 with cash of $41 million and working capital of $122 million. At
    September 30, 2013, the Company had drawn $106 million of its $230 million
    approved credit facilities. Working capital for December 31, 2012 and
    September 30, 2012 was $89 million and $107 million, respectively.

Outlook

The average  fourth quarter  2013 production  to date  from the  Patos-Marinza 
oilfield in Albania continues steady  growth at approximately 19,050 bopd,  3% 
higher than the third quarter average.

The Company is pleased with the performance of the horizontal drilling program
with plans to drill an estimated thirty-four (34) horizontal wells and two (2)
water disposal service wells in the fourth quarter. Delineation activities  in 
the South Patos area  and previously announced  drilling and reactivations  at 
Kuçova have  been deferred  to accommodate  permitting and  rig  availability, 
however, the Company intends to proceed with these plans in early 2014.

Expansion plans of enhanced oil recovery (EOR), polymer flood and water  flood 
patterns are moving forward in the  fourth quarter. The Company continues  to 
monitor and  assess pilot  performance with  initial results  expected in  the 
first half of 2014.

In the third quarter, the Company  increased spending to nearly $5 million  on 
facilities and  infrastructure  projects,  nearly  double  the  infrastructure 
spending in the first half of the year with projections in the fourth  quarter 
to spend a similar amount. Construction on a new satellite treatment facility
in the north central  region of the Patos-Marinza  field and sludge  treatment 
facility are in their  final stages; both are  scheduled to be operational  in 
the  first  quarter  of  2014.  Other  projects  include  existing   well-pad 
retrofits, new  well-pad  cascade  treating facilities,  and  installation  of 
updated fluid measurement equipment.

"These are exciting times for Bankers.  We began the year realizing our  first 
quarter of free cash flow and we  have now hit our third consecutive  quarter, 
totalling $32 million free cash  flow to date in 2013.  We have built a  solid 
platform of  reliable, disciplined  growth through  our drilling  program  and 
expect to bring in a sixth rig by  early 2014. I have been very pleased  with 
the performance of  the business, and  our financial strength  to grow  within 
cash flow  gives us  lots of  options to  balance validating  EOR with  steady 
drilling growth." said David French, President and CEO of Bankers Petroleum.

                            BANKERS PETROLEUM LTD.
               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 (Unaudited, expressed in thousands of US dollars, except per share amounts)
                                  Three months ended    Nine months ended
                                        September 30          September 30
                                    2013      2012      2013      2012
                                                                    
Revenues                          $  146,665 $  115,054 $  411,065 $  316,309
Royalties                          (24,664)  (23,259)  (69,655)  (59,627)
                                   122,001    91,795   341,410   256,682
Unrealized loss on financial        (2,208)   (1,085)   (3,588)   (4,050)
commodity contracts
                                   119,793    90,710   337,822   252,632
                                                                    
Operating expenses                   22,000    20,229    65,445    56,699
Sales and transportation             17,276    13,407    50,933    41,101
expenses
General and administrative            4,434     3,999    14,902    11,617
expenses
Depletion and depreciation          25,583    15,644    73,218    43,388
Share-based payments                  1,692     1,953     8,053     7,636
                                    70,985    55,232   212,551   160,441
                                    48,808    35,478   125,271    92,191
                                                                    
Net finance expense                   3,311     3,732     8,867     8,449
                                                                    
Income before income tax             45,497    31,746   116,404    83,742
Deferred income tax expense        (25,990)  (19,472)  (69,696)  (52,450)
Net income for the period            19,507    12,274    46,708    31,292
                                                                    
Other comprehensive income                                           
(loss)
      Currency translation             263       820     (599)       821
       adjustment
Comprehensive income for the      $   19,770 $   13,094 $   46,109 $   32,113
period
                                                                    
Basic earnings per share          $    0.077 $    0.049 $    0.184 $    0.124
Diluted earnings per share        $    0.076 $    0.048 $    0.183 $    0.123
                                                                    

                            BANKERS PETROLEUM LTD.
                CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
              (Unaudited, expressed in thousands of US dollars)

                                    ASSETS
                                              September 30     December 31
                                                     2013             2012
Current assets                                                          
  Cash and cash equivalents                $       33,550   $      33,740
  Restricted cash                                    7,109          5,000
  Accounts receivable                               55,339         35,603
  Inventory                                         35,021         23,517
  Deposits and prepaid expenses                     45,349         30,265
  Financial commodity contract                           -          1,550
                                                   176,368        129,675
Non-current assets                                                      
  Long-term receivable                              10,261         11,150
  Financial commodity contracts                      2,599              -
  Property, plant and equipment                    775,766        681,399
  Exploration and evaluation assets                  6,593          3,592
                                            $      971,587   $     825,816

                                 LIABILITIES
Current liabilities                                                     
 Accounts payable and accrued              $       52,676  $      38,787
   liabilities
 Current portion of long-term debt                  1,719          2,089
                                                    54,395         40,876
Non-current liabilities                                                 
  Long-term debt                                    98,153         97,158
  Decommissioning obligation                        18,685         16,747
  Deferred tax liabilities                         257,699        188,003
                                                   428,932        342,784

                             SHAREHOLDERS' EQUITY
  Share capital                                   338,041        334,764
                                               
  Contributed surplus                             79,672         69,435
  Currency translation reserve                     6,763          7,362
  Retained earnings                              118,179         71,471
                                                542,655        483,032
                                          $      971,587   $     825,816

                            BANKERS PETROLEUM LTD.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
              (Unaudited, expressed in thousands of US dollars)
                                Three months ended      Nine months ended
                                     September 30            September 30
                                  2013      2012      2013       2012
Cash provided by (used in):                                          
Operating activities                                                 
 Net income for the period     $   19,507 $   12,274 $    46,708 $    31,292
 Depletion and depreciation       25,583    15,644     73,218     43,388
 Accretion of long-term debt         424     1,239      2,402      3,565
 Accretion of decommissioning        259       211        750        608
  obligation
 Unrealized foreign exchange          48       328      (400)        448
  (gain) loss
 Deferred income tax expense      25,990    19,472     69,696     52,450
 Share-based payments              1,692     1,953      8,053      7,636
 Unwinding of discount of          (681)         -    (2,122)          -
  long-term receivable
 Revaluation loss of                 681         -        954          -
  long-term receivable
 Unrealized loss on financial      2,208     1,085      3,588      4,050
  commodity contracts
 Cash premiums paid for          (4,637)   (3,898)    (4,637)    (3,898)
  financial commodity
  contracts
                                 71,074    48,308    198,210    139,539
 Change in long-term                   -         -      2,057          -
  receivable
 Change in non-cash working        5,722  (16,153)   (39,227)   (28,767)
  capital
                                 76,796    32,155    161,040    110,772
Investing activities                                                 
 Additions to property, plant   (63,879)  (53,506)  (162,914)  (166,957)
  and equipment
 Additions to exploration and    (2,320)      (20)    (3,001)    (1,902)
  evaluation assets
 Restricted cash                       -  (13,417)    (2,109)   (13,417)
 Change in non-cash working        5,260       736      6,792    (3,373)
  capital
                               (60,939)  (66,207)  (161,232)  (185,649)
Financing activities                                                 
 Issue of shares for cash            545         -      1,955     12,177
 Financing costs                       -         -    (1,994)      (750)
 Change in long-term debt        (9,191)       290         10     36,107
                                 (8,646)       290       (29)     47,534
Foreign exchange gain on cash          67       160         31         25
and cash equivalents
Increase (decrease) in cash         7,278  (33,602)      (190)   (27,318)
and cash equivalents
Cash and cash equivalents,         26,272    55,297     33,740     49,013
beginning of period
Cash and cash equivalents, end  $   33,550 $   21,695 $    33,550 $    21,695
of period
                                                                    
Interest paid                   $       44 $      253 $     2,832 $     1,975
Interest received               $       26 $       43 $       145 $       321

Supporting Documents

The full Management Discussion and  Analysis (MD&A), Financial Statements  and 
updated    November     corporate     presentation    are     available     on 
www.bankerspetroleum.com. The  MD&A  and  Financial Statements  will  also  be 
available on www.sedar.com.

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 reactivations and well  recompletions 
of the  past will  continue and  success rates  and production  rates will  be 
similar to  those  rates  experienced  for  previous  well  recompletions  and 
reactivations; 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.

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:

David French
President and Chief Executive Officer
(403) 513-6930

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
+44 207 523 8000

AIM BROKER:
FirstEnergy Capital LLP
Hugh Sanderson / David van Erp
+44 0 207 448 0200
 
Press spacebar to pause and continue. Press esc to stop.