Bankers Petroleum Ltd. Second Quarter 2012

Bankers Petroleum Operational Update for the Second Quarter 2012
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June 2012 Average Monthly Production exceeds 14,800 bopd

CALGARY, July 5, 2012 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
 "Company") (TSX: BNK, AIM:BNK) is pleased to announce the following
 second quarter operational update.

Production and Oil Prices
The average second quarter 2012 production was 14,167 barrels of oil per
 day ("bopd"). Oil sales from the Patos-Marinza oilfield in Albania
 during the quarter averaged 14,169 bopd, 7% higher than the first quarter 2012 rate. The crude oil
 inventory at June 30th was 305,000 barrels, relatively consistent with 312,000 barrels at March
 31st, 2012. Average production in June was 14,817 bopd.

The Patos-Marinza second quarter average oil price was approximately
 US$76.53 per barrel (representing 71% of the Brent oil price of
 US$108.19 per barrel), as compared with the first quarter average oil price of
 US$84.96 per barrel (72% of the Brent oil price of $118.49 per barrel).

For the six months ended June 30, 2012 oil sales were 13,724 bopd
 ($80.62 per barrel) an increase of 14% from 12,024 bopd ($72.56 per
 barrel) for the comparable 2011 period.

Drilling Update

Thirty-eight (38) wells have been drilled during the second quarter:
 Thirty-six (36) horizontal production wells and one (1) water disposal
 well and one (1) exploration well in Block "F". Twenty-nine (29) of the
 horizontal wells have been completed and placed on production with 25
 wells averaging 120 bopd per well and four wells have high water cuts.
 The remaining seven (7) wells are currently undergoing completion
 operations and will be on production in the next several days. Base
 production from producing wells at the end of the first quarter
 declined by approximately 8%, another 300 bopd were shut-in at the end
 of June while drilling adjacent wells and as reported earlier another
 200 bopd were shut-in due to liner re-entry issues during the quarter.

Thermal Program

The second steam cycle for well 5201 started on June 16th and 3000 cubic
 meters of cold water steam equivalent has been injected until the end
 of June.  It is anticipated that steaming operations will continue
 until approximately mid-July. The well will be shut-in for a brief soak
 period then placed on production.

Infrastructure and Remediation

Work is continuing on the water control program with 42 wellbore
 suspensions completed in the quarter. Two wells with mechanical damage
 have been repaired and are now on production. Further remediation of
 liner re-entry continues.

Block "F"
The second exploration drilling location in Block "F" is progressing
 with reviews of environmental and construction permits.  The timeline
 for drilling the well is late fourth quarter.

Updated Corporate Presentation

For additional information on this operational update, please see the
 July 2012 version of the Company's corporate presentation at www.bankerspetroleum.com.

Conference Call


The Management of Bankers will host a conference call on July 5, 2012 at
 7:00am MDT to discuss this Operations 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 http://www.newswire.ca/en/webcast/detail/1003289/1083753. 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 19, 2012 by dialing 1-855-859-2056 or
 1-416-849-0833 and entering access code 98497298.

Markets climb on Europe deal

Markets climb on Europe deal
Global markets are rallying today after a deal among EU leaders aimed at easing the crisis in the euro zone.

"With expectations about as depressed as they possibly could be, the agreement that emerged from the euro zone leaders’ summit in the early hours of the morning was a substantial positive surprise," said Adam Cole of RBC in London.

Tokyo's Nikkei climbed 1.5 per cent, and Hong Kong's Hang Seng 2.2 per cent. In Europe, the focus of attention, London's FTSE 100, Germany's DAX and the Paris CAC 40 were up by between 1.4 per cent and 2.6 per cent by about 7:45 a.m. ET. Dow Jones industrial average and S&P 500 futures also rose.

"Just when you’re about to lose all faith in Europe’s leaders, they finally make some progress," said Benjamin Reitzes of BMO Nesbitt Burns.

"Markets are rallying following the EU announcement," he added in a research note.

"The euro jumped more than 1 per cent, moving as high as $1.2628 from about $1.2450. The major currencies are up almost across the board, with only the yen trading about flat. As such, the U.S. dollar index is getting hammered, off about 1 per cent, which if sustained would be the biggest loss since November. Spanish and Italian yields are down sharply, with the latter’s 10-year off 26 basis points to 5.93 per cent ... Commodity prices are higher: WTI crude is up 3.2 per cent to $80.15, Brent crude is up 2.5 per cent to $93.65, gold is up $26 at $1579, base metals are stronger (Comex copper is up 2.4 per cent), while the grains are higher as well."

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