Bankers Petroleum Revenues Double in the First Quarter

TIRANA, May 16 – Canadian-based Bankers Petroleum– an oil and gas exploration and production company focused on developing large oil and gas reserves– says it achieved record production during the first quarter of this year. Production averaged 11,894 barrels of oil per day (bopd)– an increase of 44%, compared to the same period in 2010. Production at the end of March, 2011 exceeded 13,500 bopd. Meanwhile, revenue increased 107% to $72.7 million ($67.95/bbl) in the first quarter of 2011 from $35.1 million ($47.16/bbl) during the first quarter of 2010. Net operating income (netback) increased 155% to $39.8 million ($37.22/bbl) in the first quarter of 2011 from $15.6 million ($20.98/bbl) during the first quarter of 2010. Capital expenditures for the first quarter of 2011 were $51.9 million and included drilling 16 wells, 29 reactivation and infrastructure/expansion projects. During the comparable 2010 quarter, capital expenditures were $26.2 million. Bankers Petroleum continued to maintain a strong balance sheet adjusted working capital of $111.4 million (including cash and cash equivalents totalling $82.9 million) and bank loans of $20.4 million. By December 31, 2010, the company had adjusted working capital of $134.9 million and bank loans of $25.8 million. In addition to its recent financial success, Bankers Petroleum announced that it had reached an agreement with Albpetrol Sh.A. (“Albpetrol”), the Albanian national oil company, to accelerate the takeover of production and royalty payments for all remaining Albpetrol active well production and also the expansion of the project area and development plan to include all of the contract area of the Patos-Marinza oilfield concession. Effective March 31, 2011, Bankers will become the sole operator and Albpetrol will cease to conduct all petroleum operations in Patos-Marinza. The total value for the takeover rights of 140 active wells, with current production of 400 bopd, retention of the associated pre-existing production (“PEP”) royalty and sole operatorship of the contract area, is 24 million USD plus an additional $10 million payment for environmental stewardship and social retrenchment. In accordance with Bankers’ existing Petroleum Agreement, Albpetrol shall retain all liabilities and obligations for legacy environmental damages in the contract area. Over the next three months, Bankers intends to take over and systematically shut-down all existing production and associated facilities from these wells. Clean-up, re-equipping and reactivation will be conducted in the upcoming few months. Plans to develop an extension to the north and south of the current field boundary are also being considered. Currently in Albania, Bankers operates and has the full rights to develop the Patos-Marinza heavy oilfield and has a 100% interest in the Ku谶a oilfield, and a 100% interest in Exploration Block F. Bankers’ shares are traded on the Toronto Stock Exchange and the AIM Market in London under the stock symbol BNK.