Bankers Petroleum Limited Operational Update for the Second Quarter 2016

 
TIDMBNK 
 
Bankers Petroleum Operational Update for the Second Quarter 2016 
 
CALGARY, July 6, 2016 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the 
"Company") (TSX: BNK, AIM: BNK) is pleased to announce the Company's second 
quarter operational update. 
 
Production 
 
Bankers achieved a second quarter 2016 production average of 15,934 barrels of 
oil per day (bopd), 8.2% below the first quarter 2016 average of 17,363 bopd. 
Following a previously announced business interruption at the Petrolifera Italo 
Albanese ("PIA") Terminal port facility in late May, the Company curtailed 
production by approximately 4,000 bopd for 5 days due to lack of storage 
capacity. Production was brought back on-line beginning June 8 and resumed 
production levels within a week. In addition, maintenance and optimization of 
the water disposal system during the quarter further restricted production 
(approximately 300 bopd over the quarter). The Company continued to optimize 
production levels and monitor the economic return of all wells in accordance 
with the current oil price environment. 
 
Sales and Oil Prices 
 
In the second quarter 2016, oil sales averaged 15,023 bopd, compared to the 
first quarter sales in 2016 of 17,280 bopd. Crude oil inventory at June 30, 
2016 increased to 348,700 barrels compared to 266,000 barrels at March 31, 
2016, with the last scheduled cargo of the quarter deferred to the first few 
days of July. 
 
Bankers' second quarter average oil price was approximately $29.99 per barrel 
(representing 66% of the Brent oil price of $45.57 per barrel), as compared 
with the first quarter 2016 average oil price of $21.07 per barrel 
(representing 62% of the Brent oil price of $33.89 per barrel). Sales to the 
export market during the second quarter 2016 represented 94% of total sales, at 
an average export price of 66% of the Brent oil price. Sales prices in the 
second quarter improved compared to the first quarter of 2016 as the Brent 
benchmark price climbed back over $40 per barrel and demand increased 
seasonally for heavy crude oil on both the export and domestic markets. 
 
For the six months ended June 30, 2016, average oil sales were 16,152 bopd 
(representing 63% of the Brent oil price of $25.22 per barrel) compared 19,899 
bopd (representing 75% of the Brent oil price of $57.95 per barrel) for the 
first six months of 2015. 
 
On April 29, 2016, Bankers added another 1,000 bopd to its existing hedge 
position for 2016. The Company now has a total of 6,000 bopd under costless 
collar contracts with an average floor of $51.52 per barrel and an average 
ceiling of $53.78 per barrel (all prices are referenced to Dated Brent) for the 
balance of 2016. In the second quarter of 2016, the hedge program generated 
proceeds of $2.7 million. The remaining 2016 hedge program at June 30, 2016, is 
valued at $2.2 million. These contracts are designed to protect Bankers against 
further volatility in oil prices in 2016. 
 
Drilling Update 
 
Due to the low oil price environment, Bankers elected to defer drilling 
activity at the start of the year in order to protect the strength of the 
Company's balance sheet. Drilling activity will resume as pricing improves and 
is being reviewed for resumption in the second half of 2016. 
 
Enhanced Oil Recovery (EOR) Program 
 
The existing polymer flood and water flood patterns continue to perform well 
and in several cases above reservoir model expectations. The average 
incremental production over primary decline in the month of June coming from 
EOR patterns is approximately 3,665 bopd (representing about 24% of total 
production). The total production coming from these EOR patterns is close to 
5,285 bopd (or 35% of total production). The Company converted four (4) 
producing wells to injection in the second quarter and has fifty-three (53) 
polymer and five (5) water flood patterns implemented at the end of the second 
quarter 2016. 
 
Infrastructure Development 
 
In the second quarter of 2016, Bankers implemented plans to expand the reach of 
natural gas generated power through the installation of stock gas generators 
synchronized with overhead powerlines and continued expansion on the polymer 
distribution system. The Company also focused on the optimization of its water 
disposal system with the purchase of high pressure pumps to be installed in the 
third quarter to increase the injection capacity at existing disposal wells. 
The planned commissioning of the new inlet system at Pad D was delayed due to 
late arrival of equipment and is now expected early in the third quarter. 
 
Corporate Transaction Update 
 
Completion of the proposed plan of arrangement (the "Arrangement") with 
affiliates of Geo-Jade Petroleum Corporation ("Geo-Jade") is subject to the 
outstanding regulatory approval of the Chinese State Administration of Foreign 
Exchange (SAFE). Bankers anticipates receipt of this approval in the coming 
weeks and closing of the Arrangement to occur shortly thereafter in July. 
Following a successful completion of the Arrangement, the common shares of 
Bankers (the "Bankers Shares") will be delisted from the Toronto Stock Exchange 
("TSX") and the AIM market of the London Stock Exchange. 
 
Updated Corporate Presentation 
 
For additional information on this Operational Update please see the Company's 
July 2016 corporate presentation on the Company's website, http:// 
www.bankerspetroleum.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, the 
regulatory approvals required to complete the Arrangement and the anticipated 
delisting of the Bankers Shares following completion of the Arrangement 
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. Forward-looking 
statements in this new release are made as of the date hereof, and the Company 
undertakes no obligation to update or revise any forward looking statements, 
whether as a result of new information, future events or otherwise, unless 
required by applicable securities laws. 
 
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 
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 
and Eastern Europe. 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". In 2015 Bankers 
acquired an 85% interest in the rights to explore the Püspökladány Block 
concession within the Pannonian Basin located in north eastern Hungary. 
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, [phone]; Doug Urch, 

Executive VP, Finance and Chief Financial Officer, [phone]; Laura 
Bechtel, Investor Relations & Corporate Communications Specialist, (403) 
513-3428, Email: [e-mail], Website: 
www.bankerspetroleum.com; AIM NOMAD: Canaccord Genuity Limited, Henry 
Fitzgerald-O'Connor, [phone]; AIM BROKER: FirstEnergy Capital LLP, 
Hugh Sanderson / David van Erp, [phone] 
 
 
 
END 
 

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July 06, 2016 07:00 ET (11:00 GMT)