Bankers Petroleum Announces 2013 Financial Results

              Bankers Petroleum Announces 2013 Financial Results

PR Newswire

CALGARY, March 13, 2014

$45 Million Free Cash Flow and 23% Increase in Oil Sales

CALGARY, March 13, 2014 /PRNewswire/ - 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 km^2 of 3D seismic with 20 km^2 on Block "F" to further
    evaluate prospects as part of the second exploration phase on the block
    and 80 km^2 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 liabilities   $    33,812    $  38,787
 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 year           33,740      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.

Contact:

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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