2015 Third Quarter Financial and Operational Results

BANKERS PETROLEUM LIMITED - 2015 Third Quarter Financial and Operational Results

PR Newswire

London, November 6

Bankers Petroleum Announces 2015 Third Quarter Financial and Operational Results

Third Quarter Operating, Sales and Transportation Costs Decrease 14%

CALGARY, Nov. 6, 2015 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2015 third quarter financial and operational results.

During the quarter, Bankers achieved a cash margin of US$27.50 per barrel and netback of US$18.46 per barrel. All amounts listed in this news release are in US dollars unless otherwise stated.

"By any measure, the third quarter is a testament to our strategy of margin expansion over the past several years and reinforces our ability to perform in a challenging oil environment" said David French, Chief Executive Officer of Bankers Petroleum. "We have reduced our costs by $8 per barrel since 2013 and reached combined levels of operating costs and sales and transportation costs not rivaled since 2009. Our improved cost structure, along with the success of our enhanced oil recovery program gives Bankers the ability to achieve more with less capital headed into 2016."

Highlights for the period ended September 30, 2015 are:

Operational Highlights:

Product Margin Highlights:

Financial Highlights:

Outlook

Production in the fourth quarter to date is 18,300 bopd, down from the third quarter average of 19,600 bopd due to temporary interruptions. Bankers anticipates exiting the year with an 18,500 to 19,000 bopd production rate.

In early October, southern Albania received significant rainfall resulting in flash flooding and power outages in the Patos Marinza field. The Company temporarily reduced production levels by an average of 1,000 bopd over an approximate two week period to manage high water levels and restricted access to well sites and facilities. The affected wells have been brought back on production and are in the process of approaching pre-flood production levels.

As previously announced, Bankers started up the flowline and inlet system of Satellite 3 in mid-October. Commissioning and stabilization of production will take approximately four (4) to six (6) weeks as twenty-three (23) pads are integrated into the system. Production has been impacted by approximately 500 bopd. The newly installed inlet separator allows Bankers to capture 1.5 to two (2) million cubic feet of gas, which can be utilized in operations.

In the third quarter, Bankers saw evidence of corrosion of the lateral liner in three polymer producer wells, limiting production from these wells by approximately 450 bopd. The corrosive environment is confined to a small aerial extent in the southern part of the field. The Company has repaired the first well with a lateral re-drill and installation of a chrome liner to mitigate the corrosive reservoir conditions. The other wells will be repaired by the end of the year. As a precaution, all new wells drilled in this area will follow this design.

The producing polymer patterns continue to perform well and Bankers expects to complete the planned twenty-five (25) to thirty (30) conversions in 2015.Eight (8) wells have been converted to injection to date in the fourth quarter and an additional two (2) to seven (7) conversions planned in the remainder of 2015.

Additional infrastructure and facilities projects in the fourth quarter include construction of the western gathering system, which is on schedule and expected to be completed in the first quarter of 2016. The vapor recovery units at Pad H and Pad D satellite facilities are expected to be fully commissioned in the fourth quarter of 2015. These two projects will capture additional gas to be used to offset diesel, propane and electricity costs.

Bankers continues to carry out a balanced capital program in the remainder of 2015, focused on maximizing the exit production rate. The Company intends to issue its 2016 Capital Program and host a conference call on Tuesday, December 15.

Supporting DocumentsThe full Management Discussion and Analysis (MD&A), Financial Statements and updated corporate presentation are available on http://www.bankerspetroleum.com/. The MD&A and Financial Statements will also be available on http://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 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 http://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.

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: [email protected]; Website: www.bankerspetroleum.com; AIM NOMAD: Canaccord Genuity Limited, Henry Fitzgerald-O'Connor/Wei Loon Yap, +44 0 207 523 8000; AIM BROKER: FirstEnergy Capital LLP, Hugh Sanderson / David van Erp, +44 0 207 448 0200