Bankers Petroleum Ltd. provides the following operational and corporate updates.

Production Third quarter production averaged 9,826 bopd from the Patos-Marinza oilfield in Albania compared to second quarter production of 9,830 bopd. Current production is 10,500 bopd with 700 bopd shut-in awaiting maintenance and repairs. The average Patos-Marinza oil price was US$46.61 per barrel representing 61% of the Brent oil price compared to the second quarter's average oil price of US$47.12 per barrel(60% of the Brent oil price).

Three main factors affected lower than anticipated daily production volumes to this date:

a) Several new wells drilled in the second and third quarter were targeting reserves expansion, thermal assessments and one well was drilled for water disposal. This reduced the number of wells drilled for production growth. b) The Company experienced delays in takeover of existing wells for re-activation from the national oil company, Albpetrol Sh.a. The Company was expecting to receive 100 well candidates from January through to the end of the third quarter, but unfortunately only 10 suitable wells have been handed over for re-activation, resulting in lower production volumes. This situation has now been resolved with 55 re-activation candidates handed over to the company by Albpetrol on October 5th. c) Several horizontal wells experienced drilling problems resulting in completing less than optimum short lateral sections. Other horizontal wells were challenged by previously explained fresh water intrusion and cross-flow from shallower zones due to corrosion in adjacent old vertical wells. Comprehensive review and remedial isolation of old well bores with corrosion issues has been progressing with positive results in increasing oil cut in affected horizontal and old vertical wells. The Company anticipates minimizing these concerns in future new drilling. With these operational and mechanical issues, the Company is adjusting its exit production target to 12,000 bopd for 2010 and to 20,000 bopd for 2011.

Drilling Update The Company continued execution of its horizontal drilling program targeting different productive zones and areas of the field to fully evaluate the reserves potential of the Patos-Marinza oilfield. Eleven horizontal wells drilled during the quarter resulted in four oil wells on production for over a month at an average rate of 165 bopd and seven wells recently placed on production and currently cleaning up and stabilizing with good initial productivity indication. The majority of the new producing wells are in the northern part of the field with one well drilled in the Driza 1 formation, which due to drilling mechanical issues has a short lateral of only 130 meters and with this limited inflow current production from the well is 30 bopd. The Driza 1 formation is present in large areas of the field and horizontal drilling development of this zone should contribute to new reserves additions.

At September 30, 2010, there were 43 horizontal wells drilled in the oilfield with 7 wells recently on production for under a month and stabilizing, 27 horizontal oil wells producing for longer than a month with an average production of 133 bopd, and 9 wells that have a lower production average of 20 bopd due to previously described mechanical issues, specifically short laterals within the producing section and water intrusion in others.

The Company is pleased with the overall success of the horizontal drilling program, specifically the potential for program expansion in 2011 beyond the 2009 proved + probable reserve case. The current reserve-based development program only incorporates horizontal drilling into 3 of the 17 discreet sands that exist in the field. Successful delineation of an additional 4 sands through the 2010 drilling program has lead to an expansion of the company's planned program in 2011 and beyond, and will likely result in incremental reserve additions at the end of the current year as new zones are targeted as recoverable oil-in-place.

Fourth Drilling Rig Bankers horizontal drilling program will continue to expand in 2011 with the addition of a fourth drilling rig which has now been contracted and is scheduled to commence operations in April 2011.

Well Reactivations and Workovers During the quarter, no wells were re-activated due to handover delays by Albpetrol. This situation has now been resolved and on October 5th, 55 existing wells have been handed over to the company by Albpetrol and several of these wells will be re-configured and placed on production before year-end. All of these wells are located in the northern part of the field north of the Seman River and in anticipation of receiving these wells the company had started construction of facilities and infrastructure to handle production from this sector.

10 existing shut-in wells were successfully brought on stream through recompletions in new producing formations to add 300 bopd of production.

Thermal Pilot and Western Extension Area In addition to drilling of two vertical core recovery wells last quarter, two step-out vertical wells were drilled in the third quarter on the western flank of the field. Both wells indicated the presence of good porous oil saturated sandstones from the Lower Gorani through the Marinza formations. To date three separate formations have been tested for primary production with others to be evaluated in this quarter. Initial indication are that the oil is heavy and viscous (3.8 degree API) indicating that thermal recovery techniques will be necessary to produce this type of oil in this area. Two additional step-out wells will be drilled in the fourth quarter to further confirm the areal extent of these zones.

Planning and work for the first thermal pilot and initial cyclic steam injection into a horizontal well in the first quarter of 2011 is progressing on schedule. Surface facilities have been designed and various components have been procured. The 25,000 BTU steam generator will be ready in late October for start-up testing by the manufacturer in preparation for transport to Albania before year-end. Wellbore and production equipment design is nearing completion with major equipment orders placed with suppliers.

Infrastructure Development Tank construction at the Vlore terminal is nearly complete and will enable storage of 160,000 barrels of oil once operational in the next few months. Planning for Phase 1 of the crude sales pipeline, from the Patos-Marinza oilfield to the rail tie-in at Fier, is progressing on schedule. Pipe has started to arrive in-country, drawings are currently being finalized for the hub facility at Fier and construction is expected to begin in the fourth quarter.

Kuçova The Company has now received formal approval from Albpetrol and AKBN (the state regulatory agency) for amendments to the Kuçova Licence and Petroleum Agreements. Field work will commence this quarter and a formal plan of development will be submitted to the Albanian authorities in November.

Block F The Company commenced re-processing existing seismic on the block. Initial evaluation of select lines illustrates considerable structural anomalies than was first contemplated. An expanded re-processing program is underway in order to select the best exploratory drilling location now scheduled for the first quarter of 2011.

Crude Marketing Initiatives / Working Capital The company has received several new proposals to purchase Patos-Marinza crude at a price range between 66% and 68% of Brent Price. The company is currently finalizing new and current marketing agreements for 2011 volume deliveries and pricing.

At September 30, 2010, Bankers held $134 million of cash, and working capital was approximately $136 million. No funds were drawn on the $110 million credit facility from the European Bank for Reconstruction and Development and the International Finance Corporation. The Company has drawn $24 million of the $28 million Raiffeisen credit facility.

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