BNK Bankers Pet

 
TIDMBNK 
 
Bankers Petroleum operational update for the fourth quarter 2015 
 
CALGARY, Jan. 7, 2016 /CNW/ - Bankers Petroleum Ltd. (Bankers or the Company) 
(TSX: BNK, AIM: BNK) is pleased to announce the Company's fourth quarter 
operational update. 
 
Production 
 
Bankers achieved a fourth quarter 2015 production average of 18,137 bopd. The 
2015 annual production average is 19,384 bopd, compared to average production 
of 20,690 bopd in 2014. 
 
Following up the performance of the polymer flood program, a large number of 
injector conversions to expand the polymer flood project were completed in the 
fourth quarter bringing some production off-line temporarily until response is 
seen in the offset producers over the coming months in 2016. 
 
As previously announced, Albania experienced significant rainfall and flash 
flooding early in the fourth quarter which impacted production by approximately 
1,000 bopd for a two week period. As Bankers continued to optimize its new 
gathering and treating systems including the tie-in of sour production from the 
Bubullima, the Company elected to shut-in specific wells to manage the sour 
fluid at the central treating facility. Bankers is working to optimize its 
treating process and modify existing facilities throughout the first half of 
2016 to accommodate Bubullima production. 
 
Due to continued downward pressure on oil prices towards the end of 2015, the 
Company continued to evaluate the economic return of all wells resulting in 
additional shut-in production of marginal producers in accordance with the 
current economic environment. 
 
Sales and Oil Prices 
 
In 2015, oil sales averaged 19,546 bopd, compared to the annual average sales 
of 20,678 bopd in 2014. During the fourth quarter, oil sales averaged 18,561 
bopd, compared to the previous quarter average of 19,730 bopd. Crude oil 
inventory at December 31, 2015 decreased to 258,000 barrels compared to 297,000 
barrels at September 30, 2015. 
 
The fourth quarter average oil price was approximately $33.62 per barrel 
(representing 77% of the Brent oil price of $43.69 per barrel), as compared 
with the third quarter average oil price of $39.50 per barrel (representing 79% 
of the Brent oil price of $50.26 per barrel). Sales to the export market during 
the fourth quarter 2015 represented 91% of total sales, at an average export 
price of 77% of the Brent oil price. The majority of the volumes were sold to 
the export market in the fourth quarter to capture higher realized prices and 
consistent off-take during the winter months. 
 
Bankers 2015 hedge program covered 6,000 bopd and generated proceeds of 
approximately $60 million being reflective of the difference between the $80 
per barrel and the actual monthly Brent price. For 2016, Bankers placed 4,000 
bopd under costless collar contracts with an average floor of $54.31/bbl and an 
average ceiling of $57.29/bbl (all prices are referenced to Dated Brent), 
current estimated value of $20 million. 
 
Drilling Update 
 
In 2015, Bankers drilled a total of sixty-one (61) horizontal wells, utilizing 
two drilling rigs. In the fourth quarter, fourteen (14) wells were drilled and 
rig released: nine (9) horizontal wells, one (1) multi-lateral horizontal well, 
three (3) lateral re-drills and one (1) water disposal well. 
 
Due to continued uncertainty of oil prices headed into 2016, Bankers has 
elected to defer drilling activity until pricing improves in order to protect 
the strength of the Company's balance sheet. The two drilling rigs that were 
utilized throughout 2015 have been temporarily suspended as of the end of 
December. Drilling activity will resume as pricing improves; the rigs have been 
racked in country and remain available to resume activity on short notice. 
 
Enhanced Oil Recovery (EOR) Program 
 
The polymer flood and water flood patterns in the Patos-Marinza oilfield 
continue to perform at or better than model expectations from the forty-eight 
(48) polymer and five (5) water flood patterns implemented by the end of the 
fourth quarter 2015, inclusive of the thirty (30) converted wells to injection 
in 2015. Nineteen (19) additional wells were converted to polymer injection in 
the fourth quarter, three (3) of which were accelerated from the 2016 program 
to be completed for the end of 2015. 
 
The Company replaced three (3) lateral horizontal legs that were identified to 
have corrosion concerns in the liners. The production performance of the new 
laterals is exceeding prior levels and the re-placement with corrosion 
resistant liners was implemented successfully. This is believed to be isolated 
to a small area of the field and similar indications of corrosion are not 
evident on other producing wells currently. 
 
The Company continues to be strongly encouraged by the results to date and 
plans to prioritize the EOR program in 2016 with sixteen (16) planned 
conversions throughout the year. 
 
Infrastructure Development 
 
In the fourth quarter, Bankers focused on the completion of projects to 
continue to capture cost savings headed into 2016. The west emulsion pipeline 
system is near completion and will be brought on in a phased approach 
throughout the first half of 2016 as inlet vessels are installed at Pad D. 
Bankers also worked on the installation of the vapour recovery units at Pad D 
and Pad H, expected to be commissioned early in the first quarter. 
Infrastructure associated with the EOR program was set-up and commissioned to 
support the nineteen (19) conversions completed in the quarter. 
 
Updated Corporate Presentation 
 
For additional information on this Operational Update please see the Company's 
January 2016 corporate presentation on the Company's website, 
www.bankerspetroleum.com. 
 
Conference Call 
 
Management of Bankers will host a conference call on January 7, 2016, at 6:30 
am MST to discuss this Operational Update. Following Management's presentation 
there will be a question and answer session for analysts and investors. 
 
To participate in the conference call, please contact the conference operator 
ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A live audio 
web cast of the conference call will also be available on Bankers website at 
www.bankerspetroleum.com or by entering the following URL into your web 
browser, http://event.on24.com/r.htm?e=1082182&s=1&k= 
EE6BF9B5C96AE8769BBAEC28FA1B1C08. 
 
The web cast will be archived two hours after the presentation on the website, 
and posted on the website for 90 days. A replay of the call will be available 
until January 21, 2016 by dialing 1-855-859-2056 or 1-416-849-0833 and entering 
access code 67460330. 
 
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 Chief 
Operating Officer 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 APEGA) with over 20 

January 07, 2016 07:00 ET (12:00 GMT)

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, 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: 
investorrelations@bankerspetroleum.com; 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 
 
 
 
END 
 

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