Bankers Petroleum Announces 2013 Financial Results

$45 Million Free Cash Flow and 23% Increase in Oil Sales 
CALGARY, March 13, 2014 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the 
"Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2013 financial 
results. 
In 2013, Bankers attained several key accomplishments including its first year 
of free cash flow, record oil production and sales.  The Company invested $234 
million in capital expenditures during 2013. All amounts listed below are in 
US dollars unless otherwise stated. 


                                                                    
    Results at a Glance                                             
                                                                    
    ($000s, except as noted)                      Year ended December 31
    Results at a Glance                           2013      2012      2011
    Financial                                                             
      Oil revenue                              566,386   432,138   339,918
      Net operating income                     316,558   218,246   169,653
      Net income                                61,743    34,413    35,996
        Per share - basic (US$)                   0.24      0.14      0.15
                  - diluted (US$)                 0.24      0.14      0.14
      Funds generated from operations          279,601   192,589   147,940
        Per share - basic (US$)                   1.10      0.76      0.60
      Capital expenditures                     234,243   222,663   242,754
    Operating                                                             
      Average sales (bopd)                      18,173    14,808    12,784
      Average Brent oil price ($/barrel)        108.66    111.67    111.26
      Average realized price ($/barrel)          85.39     79.73     72.84
      Netback ($/barrel)                         47.73     40.27     36.36
                                                                          
                                                          December 31
                                                  2013      2012      2011
    Cash and deposits                           31,706    38,740    54,013
    Working capital                            134,094    88,799    80,282
    Total assets                             1,007,148   825,816   661,216
    Long-term debt                              98,150    97,158    46,692
    Shareholders' equity                       564,675   483,032   412,679

Highlights

Bankers made several key financial and operational achievements during 2013:

Financial Highlights
        --  In 2013, revenue increased by 31% to $566 million ($85.39/bbl)
            from $432 million ($79.73/bbl) in 2012.  Field price
            realization represented 79% of the Brent oil benchmark price
            ($108.66/bbl) as compared to 71% of the Brent price
            ($111.67/bbl) in 2012.
        --  Royalties to the Albanian Government and related entities were
            $94 million (17% of revenue) compared to $78 million (18% of
            revenue) for 2012.
        --  Funds generated from operations were $280 million, a 45%
            increase compared to $193 million for 2012.  2013 represents
            the first year that funds generated from operations exceeded
            annual capital expenditures of $234 million.
        --  The Company continues to maintain a strong financial position
            at December 31, 2013 with cash of $32 million and working
            capital of $134 million.  Cash and working capital at December
            31, 2012 was $39 million and $89 million, respectively.
        --  In May 2013, both the International Finance Corporation (IFC)
            and European Bank for Reconstruction and Development (EBRD)
            approved an extension of the Company's existing credit facility
            to September 2020.  No repayments are required until September
            2017, from which time the facility amount will decrease by 25%
            annually.  Collectively, the revolving loan facilities have
            increased to $200 million from $100 million at year-end 2012.
        --  In July 2013, the Company entered into financial commodity
            contracts representing 6,000 bopd at a floor price of $80/bbl
            Brent for 2014.

Primary Drilling Program Highlights
        --  Average oil production from the Patos-Marinza oilfield was
            18,169 barrels of oil per day (bopd) in 2013, 21% higher than
            the 2012 average production of 15,020 bopd.  Average oil
            production for the first quarter of 2014 to-date is
            approximately 19,800 bopd.
        --  Oil sales averaged 18,173 bopd compared to 14,808 bopd in 2012,
            an increase of 23%, primarily as a result of the Company's
            ongoing horizontal drilling and recompletion programs, focused
            on bringing high productivity wells on stream.
        --  Capital expenditures were $234 million compared to $223 million
            in 2012.  A total of 146 wells were drilled, including 135
            horizontal production wells and 10 lateral re-drills in the
            Patos-Marinza field, plus one exploration well in Block "F".  A
            total of 128 wells were drilled in 2012.

Expansion of Product Margin Highlights
        --  Operating and sales and transportation costs, originating from
            Albanian-based companies and their employees, were $156 million
            ($23.44/bbl) compared to $136 million for 2012 ($25.00/bbl).
        --  For the year ended December 31, 2013, the Company recorded net
            operating income (netback) of $317 million ($47.73/bbl), an
            increase of 45% compared to $218 million ($40.27/bbl) in 2012.
        --  The average realized price in 2013 for Patos-Marinza crude oil
            was 79% of the Brent oil benchmark, an increase of 11% over the
            2012 oil price of 71% of Brent.
        --  The Company continued to focus on key infrastructure projects
            aimed at reducing cost and optimizing operations in the field,
            including maintenance turnaround of major treating facilities. 
            Several cascade tank systems on individual well pads have been
            completed and both a new sludge handling and satellite treating
            facility are in the final stages of construction and will
            commence operation in 2014.  Additional work on flow-lines,
            sour treatment facilities and cascade systems continue. 
            Optimization of the treating process has significantly reduced
            the diluent blend and has improved the sales specification of
            the crude oil.
        --  The technical review, including route selection, surface land
            access and social and environmental impact assessments for the
            second phase of the crude oil pipeline from the Fier Hub to the
            export terminal at Vlore is underway.  Expansion of the
            Petrolifera Italo Albanese (PIA) Vlore Terminal is under design
            for additional storage and shipping channel dredging.

Other Highlights in 2013
        --  In 2013, Bankers invested $6 million in environmental and
            social initiatives; the Company has invested over $20 million
            in environmental and social initiatives since 2009.
        --  The Oil Initially in Place (OIIP) resource assessment in
            Albania at year-end was 5.4 billion barrels, consistent with
            the OIIP at the end of 2012.  Reserves on a proved basis were
            147 million barrels, 5% higher than 139 million barrels at
            year-end 2012.  On a proved plus probable basis, reserves were
            232 million barrels, an increase of 3% compared to 226 million
            barrels at year-end 2012.  The corresponding net present value
            (NPV) after tax (discounted at 10%) of the proved plus probable
            reserves increased by 20% to $2.2 billion at year-end compared
            to $1.9 billion in 2012.
        --  The Company continues Enhanced Oil Recovery (EOR) techniques,
            monitoring and expanding on its water flood and polymer flood
            patterns.  Initial production response in the Lower Driza (D5
            reservoir sand) is expected in the first half of 2014, as the
            first two polymer injectors commenced in this zone early 2013. 
            Injection performance has been maintained at target rates with
            no premature breakthrough of fluids to offset producers, which
            is indicative of good reservoir conformance.  Reservoir
            pressure is rising and is following current projection models. 
            During 2013, Bankers implemented three water flood injectors in
            the Upper Marinza and five polymer flood injectors in three
            separate Lower Driza reservoir sands in the core area of the
            Patos-Marinza field.  Further plans to convert up to 14
            additional wells for polymer and water injection are underway
            in 2014.
        --  Block "F" contains several seismically defined structural and
            amplitude anomalies prospective for oil and natural gas.  The
            second exploration well was drilled in 2013, completing the
            Company's two well obligation on the block.  The well reached a
            total depth of 2,776 meters, however petrophysical and
            geological information indicated that the well did not
            encounter any hydrocarbon bearing zones that would merit
            testing and was suspended.  Technical evaluation of the block
            will continue and Bankers is reviewing several other prospects
            including a 3D seismic program in 2014.

Appointment of David French to the Board of Directors

Bankers is pleased to announce the appointment of David French, President and 
Chief Executive Officer (CEO) of Bankers Petroleum, to its Board of Directors, 
effective immediately.

Mr. French joined Bankers as President and CEO a year ago and has led the 
Company to reach several milestones in that time, including record production, 
free cash flow and operational efficiency improvements. Mr. French continues 
to lead the Company with a disciplined approach to delivering consistent, 
reliable growth to its shareholders.

Robert Cross, Chairman of the Board commented "Mr. French's wide range of 
international oil and gas experience and direct insight into the Company will 
be a valuable asset to the Board.  His strong leadership skills and 
relationships in the investment community will continue to have a positive and 
driving influence on the performance of the Company for many years to come".

First Quarter Operational Update

First quarter 2014 year-to-date average production is 19,800 bopd.  Bankers 
intends to issue the first quarter 2014 operational update and host a 
conference call on Tuesday, April 8, 2014.

Outlook

The Company's capital program in 2014 will be $313 million, funded from 
projected cash flow and existing cash based on an average $100 per barrel 
Brent oil price. The work program and budget will include the following:
        --  Drilling of 150 - 170 horizontal and vertical wells with 80 -
            90% of the wells focused on increasing production and 10 - 20%
            focused on delineation and data collection for improved
            development and recovery performance in the Patos-Marinza
            oilfield.
        --  Expansion of the water flood and polymer flood programs with
            the addition of up to 14 conversions as well as testing and
            evaluation of the existing patterns implemented in 2013.
        --  Continued focus on operational efficiencies in the field to
            expand product margins including gas gathering, emulsion
            flow-lines, satellite treating facilities, storage tanks, and
            field electrification.
        --  Continued management of offset existing wellbores for
            observation, water control, and suspension as well as expanding
            the water disposal system to manage the increased development.
        --  Planning and design of sales infrastructure expansion on the
            second phase crude oil pipeline from the Fier Hub facilities to
            the Vlore Port and increased storage and shipping channel
            dredging at the port.
        --  Drilling of two horizontal wells at the Kuçova oilfield and
            reactivation of existing vertical wells.
        --  Acquisition of 100 km2 of 3D seismic with 20 km2 on Block "F"
            to further evaluate prospects as part of the second exploration
            phase on the block and 80 km2 in the central and northern
            region of the Patos-Marinza field to further determine the
            deeper and extension potential of the field.
        --  Investment of $7 million on environmental remediation and
            social initiatives as part of a sustained long-term effort to
            improve the physical environment, along with training programs
            and other community initiatives for the residents near the
            Company's 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)
                                                                           
                                                           2013        2012
                                                                          
    Revenues                                         $  566,386 $  432,138
    Royalties                                          (94,294)   (78,361)
                                                        472,092    353,777
    Realized loss on financial commodity contracts      (3,898)    (6,588)
    Unrealized gain (loss) on financial commodity       (1,555)        556
    contracts
                                                        466,639    347,745
                                                                          
    Operating expenses                                   88,510     77,953
    Sales and transportation expenses                    67,024     57,578
    General and administrative expenses                  21,363     16,050
    Depletion and depreciation                           99,554     65,937
    Share-based compensation                             11,527     11,205
                                                        287,978    228,723
                                                        178,661   119,022
                                                                          
    Net finance expense                                  18,712     19,594
                                                                          
    Income before income tax                            159,949     99,428
    Deferred income tax expense                        (98,206)   (65,015)
    Net income for the year                              61,743     34,413
                                                                          
    Other comprehensive income (loss)                                     
    Currency translation adjustment                     (1,017)        953
    Comprehensive income for the year                $   60,726 $   35,366
                                                                          
    Basic earnings per share                         $    0.243 $   0.136
                                                                   
    Diluted earnings per share                       $    0.241 $    0.136
                                                                          
     
                                     BANKERS PETROLEUM LTD.
                   CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
                                        AS AT DECEMBER 31
                         (Expressed in thousands of US dollars)
     
                                                 ASSETS
                                                 2013            2012
    Current assets                                                   
      Cash and cash equivalents             $    24,597     $  33,740
      Restricted cash                             7,109         5,000
      Accounts receivable                        53,981        35,603
      Inventory                                  38,025        23,517
      Deposits and prepaid expenses              44,956        30,265
      Financial commodity contracts                 734         1,550
                                                169,402       129,675
    Non-current assets                                               
      Long-term receivable                        7,019        11,150
      Property, plant and equipment             823,908       681,399
      Exploration and evaluation assets           6,819         3,592
                                            $ 1,007,148     $ 825,816
     
                                              LIABILITIES
    Current liabilities                                              
      Accounts payable and accrued          $    33,812     $  38,787
      liabilities
      Current portion of long-term debt           1,496         2,089
                                                 35,308        40,876
    Non-current liabilities                                          
      Long-term debt                             98,150        97,158
      Decommissioning obligation                 22,806        16,747
      Deferred tax liabilities                  286,209       188,003
                                                442,473       342,784
     
                                      SHAREHOLDERS' EQUITY
    Share capital                               340,305       334,764
    Contributed surplus                          84,811        69,435
    Currency translation reserve                  6,345         7,362
    Retained earnings                           133,214        71,471
                                                564,675       483,032
                                            $ 1,007,148     $ 825,816
                                                               
                                                                           
                                        BANKERS PETROLEUM LTD.
                             CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  FOR THE YEARS ENDED DECEMBER 31
                            (Expressed in thousands of US dollars)
                                                                           
                                                         2013          2012
    Cash provided by (used in):                                            
    Operating activities                                                   
      Net income for the year                     $    61,743   $    34,413
      Depletion and depreciation                       99,554        65,937
      Accretion of long-term debt                       2,805         4,791
      Accretion of decommissioning obligation           1,019           829
      Unrealized foreign exchange (gain) loss           (756)           636
      Deferred income tax expense                      98,206        65,015
      Share-based compensation                         11,527        11,205
      Discount and revaluation of long-term                      
      receivable                                        4,687         7,629
      Realized loss on financial commodity                       
      contracts                                         3,898         6,588
      Unrealized (gain) loss on financial                        
      commodity contracts                               1,555         (556)
      Cash premiums paid for financial                           
      commodity contracts                             (4,637)       (3,898)
                                                      279,601       192,589
      Change in long-term receivable                    (556)      (18,779)
      Change in non-cash working capital             (54,403)      (12,064)
                                                      224,642       161,746
    Investing activities                                                   
      Additions to property, plant and                           
      equipment                                     (231,016)     (220,525)
      Additions to exploration and evaluation                    
      assets                                          (3,227)       (2,138)
      Restricted cash                                 (2,109)             -
      Change in non-cash working capital                1,851       (2,762)
                                                    (234,501)     (225,425)
    Financing activities                                                   
      Issue of shares for cash                          3,332        13,555
      Financing costs                                 (1,994)         (750)
      Change in long-term debt                          (813)        35,537
                                                          525        48,342
    Foreign exchange gain on cash and cash                191    
    equivalents                                                          64
    Decrease in cash and cash equivalents             (9,143)      (15,273)
    Cash and cash equivalents, beginning of            33,740    
    year                                                             49,013
    Cash and cash equivalents, end of year        $    24,597   $    33,740
                                                                           
    Interest paid                                 $     5,811   $     4,788
    Interest received                             $       159   $       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   Retained
                     shares       capital    Warrants      surplus       reserve     earnings      Total
                                                                                                         
                                                                                                  
    Balance at     247,697,769   $ 318,021   $   1,540   $    49,651   $     6,409   $  37,058 $ 412,679
    December 31,
    2011
                                                                                                        
    Share-based              -           -           -        21,432             -           -    21,432
    compensation
    Options          1,457,890       4,147           -       (1,655)             -           -     2,492
    exercised
    Warrants         4,672,991      12,596     (1,533)             -             -           -    11,063
    exercised
    Warrants                 -           -         (7)             7             -           -         -
    expired
    Net income               -           -           -             -             -      34,413    34,413
    for the year
    Currency                 -           -           -             -           953           -       953
    translation
    adjustment
                                                                                                  
    Balance at     253,828,650   $ 334,764   $       -   $    69,435   $     7,362   $  71,471 $ 483,032
    December 31,
    2012
                                                                                                        
    Share-based              -           -           -        17,585             -           -    17,585
    compensation
    Options          1,853,261       5,541           -       (2,209)             -           -     3,332
    exercised
    Net income               -           -           -             -             -      61,743    61,743
    for the year
    Currency                 -           -           -             -       (1,017)           -   (1,017)
    translation
    adjustment
                                                                                                  
    Balance at     255,681,911     340,305           -   $    84,811   $     6,345   $ 133,214 $ 564,675
    December 31,                 $           $
    2013
                                                                                                  
                                                                                                  

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.

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, 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. 
David French President and Chief Executive Officer (403) 513-6930  
Doug Urch Executive VP, Finance and Chief Financial Officer (403) 513-2691 
Laura Bechtel Investor Relations Analyst (403) 513-3428 
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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CO: Bankers Petroleum Ltd.
ST: Alberta
NI: OIL ERN  
-0- Mar/13/2014 11:00 GMT
 
 
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