Bankers Petroleum Announces 2013 Capital Program in Albania

December 11, 2012

Bankers Petroleum Ltd. is pleased to announce its 2013 capital program of US$247 million, to be fully funded with funds generated from operations. This represents a record annual activity level and takes Bankers cumulative capital investment in Albania to over $1 billion. The budget has been approved by the Company's Board of Directors and submitted to the Albanian authorities for their approval.

The 2013 capital program will focus on major development activities at the Patos-Marinza oilfield including production and reserves growth through new horizontal and vertical drilling, reactivation and workover of existing wells and implementation of water and polymer flood programs. The Company will also direct capital towards associated field infrastructure and progression of our thermal program.

The 2013 work plan will include expansion of the waterflood program and new drilling at the Kuçova oilfield as well as exploration drilling in Block F.

Abby Badwi, President & CEO commented, “Our 2013 capital budget is designed to deliver sustainable production growth and to implement the Company’s long term objectives of increasing reserves through primary, secondary and tertiary recovery methods. We will constantly review our projects’ economic returns and prevailing oil prices to allow for flexibility to expand or contract our capital programs to remain funded from our cash flow.”


Drilling and Reactivation Capital

With five drilling rigs and a budget of $159 million, the Company intends to drill a total of 110 to 120 wells, primarily horizontal production wells, along with horizontal lateral re-drills, vertical delineation, core wells, and water-injection wells. Approximately 70% to 80% of drilling activities will focus on production growth and 20% to 30% of the wells will target new reserves through delineation of zones and areas, both within and outside the field where no reserves have been booked to date. Reactivation and workover of old vertical wells will continue and the $7 million costs associated with these activities are included in the drilling budget.

Water and Polymer Flood Program

The 2013 budget includes $10 million for implementation of three waterflood and one polymer flood patterns, which will be expanded in 2014 and beyond to offset field declines and increase recovery of the oil in place.

Facilities and Infrastructure

There will be $68 million in capital allocated to facilities and infrastructure activities, including:
- construction of additional satellite treatment facilities;
- planning for our second leg of the crude oil pipeline, 35 kilometre route that will connect the central Fier hub loading facility to the Vlore Port export terminal;
- expanded remediation program targeting over 200 old vertical wells;
- expansion of water disposal capabilities with two to three new water disposal wells;
- and continuation of environmental remediation and social initiatives.

Thermal Pilot Project

Coring programs and simulation studies will continue throughout the year to determine the best location and zone for the next thermal pilot, which could lead to future development of the field’s large contingent and prospective resources. Cost estimates for these activities are included in the 2013 capital program.

Patos-Marinza Field Study