Dec 16, 2010, 08:00 ET from Bankers Petroleum Ltd.

Capital Expenditures in Albania to exceed US$210 Million

CALGARY, Dec. 16 /PRNewswire/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to announce its 2011 capital program of US$215 million, an increase of 40% over its 2010 capital program. The 2011 capital program will focus on major development activities at the Patos-Marinza oilfield along with expenditures at the Kuçova oilfield and the newly acquired Block F exploration acreage, in Albania.


                                          COST     Additions
    WORK PROGRAM                        US$000'S     (bopd)


    Horizontal Wells                     91,000       8,000
    Well Reactivations                   25,000       2,000
    Vertical Wells                       12,000
    Base Capital
      Facilities Infrastructure          10,000
      Pipeline Infrastructure            21,000
      Well Workovers                     14,000
      Water Control/Disposal             12,000
      Environmental Stewardship          12,000
      Geology & Geophysics                3,000
    Thermal Pilot Project                10,000



    Well Testing and Waterflood Pilot     2,000


    Seismic & Drilling                    3,000

    TOTAL                               215,000      10,000

       PRODUCTION                             BOPD
       ----------                             ----
       2010 Exit Rate                       12,000
       New Production                       10,000
       Base Decline (~15%)                   2,000
       2011 Exit Rate                       20,000

Horizontal Wells

2011 production additions from the horizontal program assume 60 successful wells will be drilled with an average production rate of 135 bopd. The majority of these wells will be drilled in the Northern section of the field.

Well Reactivations

Production from well reactivations assumes 60-70 successful wells, each with a six month production ramp up period into a peak production plateau of 35 bopd. The volume increases from well reactivations in 2011 offsets the 15% decline from the base production over the course of the year.

Vertical Wells

The vertical drilling program will be focused on delineation of the oilfield beyond its current boundaries and exploit new zones within the field.

Base Capital

    -   Facility Infrastructure: will see the completion of two projects, the
        expansion of the Central Treating Facility "CTF" and the construction
        of a bridge over the Semen river connecting field operations between
        the northern and southern part of the field. The bridge will also
        improve local communities accessibility in the area.
    -   Pipeline Infrastructure: Construction of phase 1 of the pipeline
        (12 kms) connecting the field to the Fier Central Hub loading
        facility will commence in the first quarter and is expected to be
        completed by the end of the second quarter, coincident with
        construction of the Central Hub Facility.
    -   Well Workovers: This program continues to support the drilling and
        reactivation programs through follow up maintenance and
    -   Water Control/Disposal: Work continues on the remediation of water
        intrusion caused by old well bores within the field. In addition, the
        Company will also be expanding water disposal capabilities with new
        injector wells.
    -   Environmental Stewardship: 2011 will see the completion of the Sector
        3 remediation trials and other environmental remediation and social
    -   Geology & Geophysics: Continuing work on geophysical and geological
        interpretation of the Patos-Marinza field in the southern portion of
        the field and the Bubullima area to the north. Additional technical
        analysis include: core studies, reservoir performance studies and
        evaluation of thermal applications beyond the horizontal cyclic steam
        pilot project.

Thermal Pilot Project

2011 will be a milestone year for thermal development of the Patos-Marinza oilfiled. Bankers will drill 2 vertical delineation wells and 2 horizontal wells designed for high pressure and temperature steam injection, including installation of a 25,000 BTU steam generator and production facilities. Fabrication of the major thermal equipment and steam generator is now complete and in transit to Albania. The first steam cycle is scheduled for May 2011


Approval was received November 17th, 2010 from Albania's Council of Ministers for the amendments to the Kuçova Petroleum Agreement. Revisions included the scope of work for a waterflood evaluation program and extending the evaluation period on the Kuçova project. Field activity is set to commence in the first quarter and will include conversion of 1 well to water injection with 3 to 4 wells re-equipped for a production test to commence the waterflood pilot in a small group of wells.

Block F

Geophysical data reprocessing and interpretation is continuing. The Company anticipates drilling two exploration wells on the block during 2011 with the first test well projected to spud early in the third quarter. Approval was received November 17th, 2010 from Albania's Council of Ministers for the Block F Petroleum Agreement.


In addition to the fourth drilling rig scheduled to commence drilling in the second quarter of 2011, the Company would like to announce the signing of an additional 2 service rigs that will arrive in Albania in the first quarter. This takes the Company's drilling rig count to 4 and the service rig count to 10 which will accommodate the capacity needed to fully execute the 2011 program.


Bankers expects to fully fund the 2011 capital program from funds generated from operations, supplemented with a portion of its cash resources on hand. This will continue to leave the full US$110 million of credit facilities available.


The Company is pleased to announce that it has been able to fully restore all shut-in production due to the recent flooding and that the one drilling rig which was temporarily offline due to flood damage, has now been placed back into operation. The Company's current production is 11,400 bopd.


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 oil fields 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 and gas 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 and gas production operations, including: that commodity 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 new wells, 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; approval of the Addendum to the Plan of Development; 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

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.

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 and 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.

SOURCE Bankers Petroleum Ltd.