Big Banc Split Corp T.BNK

Production up - 20,630 bopd - Oil sales up - 17.3 %

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Bankers Petroleum Operational Update for the Second Quarter 2014

cnw

Average Quarterly Production 20,630 bopd

CALGARY, July 7, 2014 /CNW/ - Bankers Petroleum Ltd. (Bankers or the
Company) (TSX: BNK, AIM: BNK) is pleased to announce the Company's
second quarter operational update.


Production, Sales and Oil Prices

Average production from the Patos-Marinza oilfield in Albania for the
second quarter of 2014 was 20,630 barrels of oil per day (bopd), 3.6%
higher than 19,911 bopd in the first quarter of 2014.

Oil sales during the quarter averaged 21,627 bopd, 17.3% higher than the
previous quarter average of 18,435 bopd, with inclusion of the export
cargo that carried over from the first quarter into the first few days
of April. Crude oil inventory at June 30, 2014, decreased 20% to
354,000 barrels, 90,000 barrels lower than 444,000 barrels at March 31,
2014.

The Patos-Marinza second quarter average oil price was approximately
$86.68 per barrel (representing 79% of the Brent oil price of $109.63
per barrel), as compared with the first quarter average oil price of
$87.39 per barrel (representing 81% of the Brent oil price of $108.21
per barrel).

For the six months ended June 30, 2014, average oil sales were 20,040
bopd ($87.00 per barrel) an increase of 16% from 17,310 bopd ($84.39
per barrel) for the comparable 2013 period.

Drilling Update

Forty-two (42) wells were drilled and rig released during the second
quarter in the main area of the Patos-Marinza oilfield: thirty-nine
(39) horizontal production wells and three (3) horizontal lateral
re-drills. Thirty-four (34) of these wells were completed and are on
production with the remaining eight (8) to be placed on production in
July pending drilling rig move off the pad, well completions and
facilities tie-in.

The Company continues to focus on development in the main area of the
Patos-Marinza oilfield through multi-well pad drilling with six
drilling rigs currently in operation.


Secondary Recovery Program


Close monitoring continues on the water and polymer flood programs. All
patterns continue to show positive early stage production trends.
Reservoir pressure and production response are rising and following
current projection models with injection performance achieving target
rates indicative of good reservoir conformance.


To-date Bankers has implemented three (3) water flood injectors in the
Upper Marinza zone (M0 reservoir sand) and nine (9) polymer flood
injectors in three (3) separate Lower Driza zones (D5, D4, and D3
reservoir sands) in the Patos-Marinza oilfield. The Company plans to
expand the patterns with conversion of up to an additional ten (10)
wells in the second half of the year with a projected schedule of three
(3) polymer flood injector conversions in the third quarter, six (6)
polymer flood conversions in the fourth quarter, and one (1) water
flood conversion in the fourth quarter.


Procurement of mixing and pumping equipment is underway to support the
expansion along with construction of pipelines to move polymer solution
and emulsion between central mixing and treating locations to pad
locations for improved efficiency and cost effectiveness.




Infrastructure Development


In the second quarter of 2014, the Company commenced disposal in two (2)
water disposal wells drilled in the first quarter and commenced
operation of the new sludge treatment facility. Three (3) well pads in
the northern and central areas of the Patos-Marinza oilfield have been
electrified with two (2) pads completed in the second quarter. An
additional four to six (4 to 6) pads are projected to be electrified in
the second half of the year.


Emulsion gathering projects in the northern and western areas of the
main field are progressing with construction projected to start this
summer for completion in the first quarter of next year. This will
significantly reduce the in-field trucked volume costs by $0.40 to
$0.50 per barrel over the next year.


Bankers remains focused on key infrastructure projects aimed at reducing
costs and optimizing operations including diluent reduction, improved
emulsion treating, expansion of the flow-line system, sour treatment
facilities and gas gathering.


Updated Corporate Presentation


For additional information on this Operational Update please see the
Company's July 2014 corporate presentation at www.bankerspetroleum.com.


Conference Call


The Management of Bankers will host a conference call on July 7, 2014,
at 6:30 am MDT 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,https://www.newswire.ca/en/webcast/detail/1379735/1530353.


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 July 21, 2014, by dialing 1-855-859-2056 or
1-416-849-0833 and entering access code 67552347.