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, (403) 513-6930; Doug Urch,
    Executive VP, Finance and Chief Financial Officer, (403) 513-2691; Laura
    Bechtel, Investor Relations & Corporate Communications Specialist, (403)
    513-3428, Email: investorrelations@bankerspetroleum.com, Website:
    www.bankerspetroleum.com; AIM NOMAD: Canaccord Genuity Limited, Henry
    Fitzgerald-O'Connor, +44 0 207 523 8000; AIM BROKER: FirstEnergy Capital LLP,
    Hugh Sanderson / David van Erp, +44 0 207 448 0200