Average Quarterly Production 16,900 bopd and Credit Facility Extension
CALGARY, April 5, 2013 /PRNewswire/ - Bankers Petroleum Ltd. (Bankers or the Company) (TSX: BNK) (AIM: BNK) is pleased to announce the Company's first quarter operational update.
Production, Sales and Oil Prices
Average production from the Patos-Marinza oilfield in Albania for the first quarter of 2013 was 16,916 barrels of oil per day (bopd), 4.7% higher than 16,163 bopd in the fourth quarter of 2012. Oil sales during the quarter averaged 16,605 bopd, 3.6% higher than the previous quarter average of 16,033 bopd. The crude oil inventory at March 31, 2013 was 340,000 barrels, 26,000 barrels higher than 313,000 barrels at December 31, 2012.
The Patos-Marinza first quarter average oil price was approximately $89.42 per barrel (representing 80% of the Brent oil price of $112.43 per barrel), as compared with the 2012 fourth quarter average oil price of $78.53 per barrel (71% of the Brent oil price of $110.08 per barrel).
Thirty-two (32) horizontal wells were drilled during the first quarter: thirty-one (31) horizontal production wells and one (1) horizontal lateral re-drill well in the main area of the Patos-Marinza field. Twenty-eight (28) of these wells were completed and are on production, and four (4) will be placed on production this month.
The Company continues to focus horizontal drilling in the primary Driza reservoir zones and has expanded drilling in several Marinza zones with encouraging results. Pattern development drilling for secondary recovery techniques in the Marinza and Lower Driza zones has also commenced in the first quarter.
The drilling rig damaged in January has now been repaired and the Company has five drilling rigs in operation.
Secondary and Tertiary Recovery Program
The Company commenced preliminary injectivity testing at the first pilot polymer flood location. Following the test completion, expected within the second quarter, progression of the pilot will be sanctioned should results merit further pilot work at this location.
The second exploration drilling location in Block "F" is scheduled to be drilled in the second quarter of 2013. Lease access has been obtained and site construction will commence shortly.
Expansion of crude oil storage capacity continues at the Central Treatment Facility ("CTF") in the Patos-Marinza field with construction of an additional 12,000 barrel sales tank. Commissioning of the tank is projected this summer and will improve our operational treating capability and storage flexibility.
Credit Facility Update
The International Finance Corporation (IFC) has approved an extension of the Company's existing credit facility to May 2020, subject to final documentation. No repayments are required until May 2017, at which time the facility amount will decrease by 25% annually. Additionally, IFC's revolving loan facility will increase to $60 million from the existing $50 million. Discussions with the European Bank for Construction and Development (EBRD) for corresponding changes to the existing $50 million revolving loan facility are ongoing, with a decision expected shortly. In addition, the existing $20 million revolving facility and $1 million term facility from Raiffeisen Bank will remain in effect.
Updated Corporate Presentation
For additional information on this operational update, please see the April 2013 version of the Company's corporate presentation at www.bankerspetroleum.com.
The Management of Bankers will host a conference call on April, 5 2013 at 6:30 am MDT to discuss this Operations Update. Following Management's presentation, there will be a question and answer session for analysts and investors. Mr. David French, Bankers' newly appointed President and CEO will also be participating on the call.
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 http://www.bankerspetroleum.com or by entering the following URL into your web browser http://www.newswire.ca/en/webcast/detail/1136995/1240855
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 April 19, 2013 by dialing 1-855-859-2056 or 1-416-849-0833 and entering access code 30277987.
Annual General Special Meeting
Bankers Petroleum invites all shareholders to attend its Annual General Special Meeting to be held on Tuesday, May 21 at The Metropolitan Centre, Calgary Alberta. This years' meeting will be held in the Travoli room at 3:00 pm (MST).
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 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 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.
Review by Qualified Person
This release was reviewed by Suneel Gupta, Executive Vice President and COO 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, 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". 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.