BANKERS PETROLEUM ANNOUNCES 2011 FIRST QUARTER FINANCIAL AND OPERATIONAL RESULTS
Record Quarter of Production and Financial Results
CALGARY, May 13 /PRNewswire-FirstCall/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2011 first quarter Financial and operational results. The complete reporting package, consisting of Management's Discussion and Analysis along with Financial Statements and Notes, is posted on the Company's website www.bankerspetroleum.com and SEDAR: www.sedar.com.
| Results at a Glance (US$000, except as noted)(3) |
Three months ended March 31 |
Three months ended December 31 |
|||||||||||||
| 2011 | 2010 | Change | 2010 | Change | |||||||||||
| Oil revenue | 72,736 | 35,149 | 107% | 50,945 | 43% | ||||||||||
| Net operating income | 39,834 | 15,639 | 155% | 25,465 | 56% | ||||||||||
| Net income (loss) | 11,219 | (363) | 32 x | 4,630 | 142% | ||||||||||
| Funds generated from operations(1) | 30,259 | 13,814 | 119% | 23,292 | 30% | ||||||||||
| Capital expenditures | 51,930 | 26,170 | 98% | 37,367 | 39% | ||||||||||
| Average production (bopd) | 11,894 | 8,282 | 44% | 10,424 | 14% | ||||||||||
| Average price ($/barrel) | 67.95 | 47.16 | 44% | 53.12 | 28% | ||||||||||
| Netback ($/barrel) | 37.22 | 20.98 | 77% | 26.55 | 40% | ||||||||||
| March 31 2011 |
March 31 2010 |
Change | December 31 2010 |
Change | |||||||||||
| Cash and deposits | 82,854 | 67,712 | 22% | 108,119 | (23%) | ||||||||||
| Adjusted working capital(2) | 111,382 | 70,626 | 58% | 134,934 | (17%) | ||||||||||
| Total assets | 522,476 | 329,036 | 59% | 465,598 | 12% | ||||||||||
| Bank loans | 20,416 | 26,418 | (23%) | 25,829 | (21%) | ||||||||||
| Shareholders' equity | 371,355 | 226,882 | 64% | 346,267 | 7% | ||||||||||
| (1) | Includes $6.6 million cash premiums paid for financial commodity contracts. | ||||||||||||||
| (2) | Represents working capital net of current portion of long-term debt. | ||||||||||||||
| (3) | Effective January 1, 2011, and retroactive to January 1, 2010, the Company adopted International Financial Reporting Standards (IFRS). Previously, the Company prepared its Financial Statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP). The transition has not resulted in any material variation from prior periods. Full details on the transition adjustments are contained in the Notes to the Consolidated Interim Financial Statements. |
Highlights for the quarter ended March 31, 2011 are:
- Bankers achieved record production during the three months ended March 31, 2011. Production averaged 11,894 bopd, an increase of 44%, compared to the same period in 2010. Production at the end of March 31, 2011 exceeded 13,500 bopd.
- Revenue increased 107% to $72.7 million ($67.95/bbl) in the first quarter of 2011 from $35.1 million ($47.16/bbl) during the first quarter of 2010.
- Net operating income (netback) increased 155% to $39.8 million ($37.22/bbl) in the first quarter of 2011 from $15.6 million ($20.98/bbl) during the first quarter of 2010.
- Funds generated from operations increased 119% to $30.3 million in the first quarter of 2011 from $13.8 million over the first quarter of 2010. Included in funds generated from operations are cash premiums paid of $6.6 million for financial commodity contracts in February 2011.
- Capital expenditures for the first quarter of 2011 were $51.9 million and included drilling 16 wells, 29 reactivation and related infrastructure/expansion projects. During the comparable 2010 quarter, capital expenditures were $26.2 million.
- The Company continues to maintain a strong balance sheet adjusted working capital of $111.4 million (including cash and cash equivalents totalling $82.9 million) and bank loans of $20.4 million. At December 31, 2010 the Company had adjusted working capital of $134.9 million and bank loans of $25.8 million. Adjusted working capital at March 31, 2010 was $70.6 million.
ANNUAL GENERAL MEETING
The Company's Annual General Meeting (AGM) will take place on May 24, 2011 at 3:00pm MDT (5:00pm EDT) at the Petroleum Club in Calgary, AB, Canada.
For additional information, please see an updated version of the Company's corporate presentation on www.bankerspetroleum.com.
| BANKERS PETROLEUM LTD. | ||||||||||||||||||||||||
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||||||||||||||||||||
| (Unaudited, expressed in thousands of US dollars) | ||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| March 31 2011 |
December 31 2010 |
January 1 2010 |
||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 81,354 | $ | 106,619 | $ | 59,495 | ||||||||||||||||||
| Short-term investments | - | - | 7,275 | |||||||||||||||||||||
| Restricted cash | 1,500 | 1,500 | 1,500 | |||||||||||||||||||||
| Accounts receivable | 48,063 | 29,233 | 23,358 | |||||||||||||||||||||
| Inventory | 15,890 | 4,199 | 2,031 | |||||||||||||||||||||
| Deposits and prepaid expenses | 15,265 | 16,624 | 5,899 | |||||||||||||||||||||
| 162,072 | 158,175 | 99,558 | ||||||||||||||||||||||
| Non-current assets | ||||||||||||||||||||||||
| Note receivable | - | - | 2,749 | |||||||||||||||||||||
| Deferred financing costs | 13,589 | 13,980 | 15,824 | |||||||||||||||||||||
| Financial commodity contracts | 5,187 | - | - | |||||||||||||||||||||
| Property, plant and equipment | 341,628 | 293,443 | 187,924 | |||||||||||||||||||||
| Total assets | $ | 522,476 | $ | 465,598 | $ | 306,055 | ||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||
| Accounts payable and accrued liabilities | $ | 50,690 | $ | 23,241 | $ | 19,505 | ||||||||||||||||||
| Current portion of long-term debt | 18,565 | 4,014 | 4,639 | |||||||||||||||||||||
| 69,255 | 27,255 | 24,144 | ||||||||||||||||||||||
| Non-current liabilities | ||||||||||||||||||||||||
| Long-term debt | 1,851 | 21,815 | 23,446 | |||||||||||||||||||||
| Decommissioning obligation | 6,871 | 6,622 | 4,796 | |||||||||||||||||||||
| Deferred tax liabilities | 73,144 | 63,639 | 38,892 | |||||||||||||||||||||
| Total liabilities | 151,121 | 119,331 | 91,278 | |||||||||||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
| Share capital | 314,456 | 309,379 | 206,058 | |||||||||||||||||||||
| Warrants | 1,597 | 1,597 | 1,739 | |||||||||||||||||||||
| Contributed surplus | 35,113 | 28,135 | 16,443 | |||||||||||||||||||||
| Accumulated other comprehensive income | 7,908 | 6,094 | - | |||||||||||||||||||||
| Retained earnings (deficit) | 12,281 | 1,062 | (9,463) | |||||||||||||||||||||
| 371,355 | 346,267 | 214,777 | ||||||||||||||||||||||
| $ | 522,476 | $ | 465,598 | $ | 306,055 | |||||||||||||||||||
| BANKERS PETROLEUM LTD. | |||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31 | |||||||||||||||||||||||||
| (Unaudited, expressed in thousands of US dollars, except per share amounts) | |||||||||||||||||||||||||
| 2011 | 2010 | ||||||||||||||||||||||||
| Revenues | $ | 72,736 | $ | 35,149 | |||||||||||||||||||||
| Royalties | (13,755) | (7,190) | |||||||||||||||||||||||
| 58,981 | 27,959 | ||||||||||||||||||||||||
| Operating expenses | 11,597 | 7,925 | |||||||||||||||||||||||
| Sales and transportation expenses | 7,550 | 4,395 | |||||||||||||||||||||||
| General and administrative expenses | 2,858 | 2,456 | |||||||||||||||||||||||
| Depletion and depreciation | 8,265 | 4,384 | |||||||||||||||||||||||
| Amortization of deferred financing costs | 734 | 683 | |||||||||||||||||||||||
| Share-based payments | 4,645 | 3,704 | |||||||||||||||||||||||
| Unrealized loss on financial commodity contracts | 1,401 | - | |||||||||||||||||||||||
| 37,050 | 23,547 | ||||||||||||||||||||||||
| 21,931 | 4,412 | ||||||||||||||||||||||||
| Finance income | 307 | 727 | |||||||||||||||||||||||
| Finance expense | (1,514) | (753) | |||||||||||||||||||||||
| (1,207) | (26) | ||||||||||||||||||||||||
| Income before income tax | 20,724 | 4,386 | |||||||||||||||||||||||
| Deferred income tax expense | (9,505) | (4,749) | |||||||||||||||||||||||
| Net income (loss) for the period | 11,219 | (363) | |||||||||||||||||||||||
| Other comprehensive income | |||||||||||||||||||||||||
| Currency translation adjustment | 1,814 | 1,444 | |||||||||||||||||||||||
| Comprehensive income for the period | $ | 13,033 | $ | 1,081 | |||||||||||||||||||||
| Basic earnings (loss) per share | $ | 0.046 | $ | (0.002) | |||||||||||||||||||||
| Diluted earnings (loss) per share | $ | 0.044 | $ | (0.002) | |||||||||||||||||||||
| BANKERS PETROLEUM LTD. | ||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||||||||||||||||||||||||||||||||||||||||
| (Unaudited, expressed in thousands of US dollars, except number of common shares) | ||||||||||||||||||||||||||||||||||||||||||
| Number of common shares |
Share capital | Warrants | Contributed surplus |
Accumulated other comprehensive income |
Retained earnings (deficit) |
Total | ||||||||||||||||||||||||||||||||||||
| Balance at January 1, 2010 | 228,272,165 | $ | 206,058 | $ | 1,739 | $ | 16,443 | $ | - | $ | (9,463) | $ | 214,777 | |||||||||||||||||||||||||||||
| Share-based payments | - | - | - | 6,608 | - | - | 6,608 | |||||||||||||||||||||||||||||||||||
| Options exercised | 1,035,222 | 2,759 | - | (952) | - | - | 1,807 | |||||||||||||||||||||||||||||||||||
| Warrants exercised | 1,033,334 | 2,724 | (115) | - | - | - | 2,609 | |||||||||||||||||||||||||||||||||||
| Net loss for the period | - | - | - | - | - | (363) | (363) | |||||||||||||||||||||||||||||||||||
| Currency translation adjustment | - | - | - | - | 1,444 | - | 1,444 | |||||||||||||||||||||||||||||||||||
| Balance at March 31, 2010 | 230,340,721 | 211,541 | 1,624 | 22,099 | 1,444 | (9,826) | 226,882 | |||||||||||||||||||||||||||||||||||
| Issue of common shares | 12,903,228 | 96,153 | - | - | - | - | 96,153 | |||||||||||||||||||||||||||||||||||
| Share issue costs | - | (4,333) | - | - | - | - | (4,333) | |||||||||||||||||||||||||||||||||||
| Share-based payments | - | - | - | 7,876 | - | - | 7,876 | |||||||||||||||||||||||||||||||||||
| Options exercised | 1,307,108 | 5,361 | - | (1,840) | - | - | 3,521 | |||||||||||||||||||||||||||||||||||
| Warrants exercised | 243,933 | 657 | (27) | - | - | - | 630 | |||||||||||||||||||||||||||||||||||
| Net income for the period | - | - | - | - | - | 10,888 | 10,888 | |||||||||||||||||||||||||||||||||||
| Currency translation adjustment | - | - | - | - | 4,650 | - | 4,650 | |||||||||||||||||||||||||||||||||||
| Balance at December 31, 2010 | 244,794,990 | 309,379 | 1,597 | 28,135 | 6,094 | 1,062 | 346,267 | |||||||||||||||||||||||||||||||||||
| Share-based payments | - | - | - | 8,925 | - | - | 8,925 | |||||||||||||||||||||||||||||||||||
| Options exercised | 1,963,444 | 5,077 | - | (1,947) | - | - | 3,130 | |||||||||||||||||||||||||||||||||||
| Net income for the period | - | - | - | - | - | 11,219 | 11,219 | |||||||||||||||||||||||||||||||||||
| Currency translation adjustment | - | - | - | - | 1,814 | - | 1,814 | |||||||||||||||||||||||||||||||||||
| Balance at March 31, 2011 | 246,758,434 | $ | 314,456 | $ | 1,597 | $ | 35,113 | $ | 7,908 | $ | 12,281 | $ | 371,355 | |||||||||||||||||||||||||||||
| BANKERS PETROLEUM LTD. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31 | |||||||||||||||||||||
| (Unaudited, expressed in thousands of US dollars) | |||||||||||||||||||||
| 2011 | 2010 | ||||||||||||||||||||
| Cash provided by (used in): | |||||||||||||||||||||
| Operating activities | |||||||||||||||||||||
| Net income (loss) for the period | $ | 11,219 | $ | (363) | |||||||||||||||||
| Depletion and depreciation | 8,265 | 4,384 | |||||||||||||||||||
| Amortization of deferred financing costs | 734 | 683 | |||||||||||||||||||
| Finance expenses (including accretion) | 1,514 | 753 | |||||||||||||||||||
| Interest paid | (310) | (165) | |||||||||||||||||||
| Foreign exchange (gain) loss | (126) | 69 | |||||||||||||||||||
| Deferred income tax expense | 9,505 | 4,749 | |||||||||||||||||||
| Share-based payments | 4,645 | 3,704 | |||||||||||||||||||
| Unrealized loss on financial commodity contracts | 1,401 | - | |||||||||||||||||||
| Cash premiums paid for financial commodity contracts | (6,588) | - | |||||||||||||||||||
| 30,259 | 13,814 | ||||||||||||||||||||
| Change in non-cash working capital | (8,012) | (1,678) | |||||||||||||||||||
| 22,247 | 12,136 | ||||||||||||||||||||
| Investing activities | |||||||||||||||||||||
| Additions to property, plant and equipment | (51,930) | (26,170) | |||||||||||||||||||
| Change in non-cash working capital | 5,988 | 5,022 | |||||||||||||||||||
| (45,942) | (21,148) | ||||||||||||||||||||
| Financing activities | |||||||||||||||||||||
| Issue of shares for cash | 3,130 | 4,416 | |||||||||||||||||||
| Short-term deposits | - | (1,800) | |||||||||||||||||||
| Financing costs | (26) | (152) | |||||||||||||||||||
| Decrease in long-term debt | (5,413) | (1,667) | |||||||||||||||||||
| (2,309) | 797 | ||||||||||||||||||||
| Foreign exchange gain on cash and cash equivalents | 739 | 857 | |||||||||||||||||||
| Decrease in cash and cash equivalents | (25,265) | (7,358) | |||||||||||||||||||
| Cash and cash equivalents, beginning of period | 106,619 | 59,495 | |||||||||||||||||||
| Cash and cash equivalents, end of period | $ | 81,354 | $ | 52,137 | |||||||||||||||||
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; 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.
Contingent resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Prospective resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations, by application of future development projects.
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 Abdel F. (Abby) Badwi, President & CEO 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 geologist (member of APEGGA) with over 40 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 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.
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