Bankers Petroleum Announces First Quarter Financial and Operational Results
Current production exceeds 10,000 bopd
CALGARY, May 14 /PRNewswire-FirstCall/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to provide its first quarter 2010 Financial and Operational Results, together with its Management's Discussion and Analysis. 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.
Abby Badwi, President and Chief Executive Officer: "We are very pleased with the results. 10,000 bopd is a significant milestone in the growth of the Company. With the addition of a second drilling rig in January, the Company doubled its capacity to drill horizontal wells and increase production significantly over the quarter as a result."
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Q1 - 2010 Q4 - 2009 Q1 - 2009
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Production (bopd) 8,282 5,864 7,234
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Brent Oil Price $/bbl 76.36 74.53 44.40
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Patos-Marinza Oil Price $/bbl 47.16 45.10 24.73
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Operating Costs $/bbl 10.63 11.18 10.44
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Transportation $/bbl 5.90 5.56 2.70
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Royalties $/bbl 9.65 9.35 6.61
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Netback $/bbl 20.98 19.01 4.98
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HIGHLIGHTS
- Oil revenue increased 17% from $30.0 million during the previous
quarter to $35.1 million in the first quarter of 2010 as a result
of increased production and more favourable oil prices. Sales were
$13.1 million for the first quarter of 2009.
- Production at the end of March 31, 2010 was approximately 9,500
bopd, averaging 8,282 bopd over the first quarter, an increase of
41% compared to the first quarter 2009 average. Current production
is in excess of 10,000 bopd. The Company's netback (revenue less
royalties, operating, sales and transportation expenses) increased
10% to $20.98/bbl (44% of the average price) compared to
$19.01/bbl (42% of the average price) in the fourth quarter of
2009. The netback for the first quarter of 2009 was $4.98/bbl (20%
of the average price). The changes in netback were primarily due
to more favourable average prices received from export sales and
the fluctuation in commodity prices.
- Funds generated from operations increased to $13.8 million in the
first quarter of 2010 from $10.8 million in the fourth quarter of
2009.
- Capital expenditures were $26.7 million during the quarter, an
increase of 55% from the previous quarter spending of $17.2
million, compared to $2.8 million of expenditures in the first
quarter of 2009.
- Operating expenditures decreased to $10.63 per barrel during the
quarter from $11.18 per barrel in the previous quarter, primarily
due to increased production and efficiencies.
- Liquidity as of March 31, 2010 saw the company in a position of
financial strength, with working capital of $66.0 million and cash
of $62.7 million. An additional $15 million was received in April
and May 2010. The Company had also drawn $26.4 million from its
$139.6 million in available credit facilities.
Three months ended
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March 31 March 31 December 31
Results at a Glance (US$000s) 2010 2009 2009
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Oil revenue 35,149 13,052 30,014
Net operating income 15,639 2,628 12,650
Net income (loss) 470 (2,492) 2,313
Funds generated from operations 13,819 1,265 10,788
Capital expenditures 26,700 2,835 17,259
March 31 March 31 December 31
2010 2009 2009
------------------------------------
Cash and deposits 62,712 14,048 68,270
Working capital (deficiency) 65,987 (10,166) 75,414
Total assets 330,371 210,674 304,820
Bank loans 26,418 26,948 28,085
Shareholders' equity 225,548 123,622 213,960
OUTLOOK
Throughout the remainder of 2010, the Company will remain focused on achieving its priorities and implementing its capital programs in Albania:
- In January 2010, a second drilling rig commenced drilling in the
Patos-Marinza oilfield and a third rig has now been contracted to
start drilling in July 2010. The Company plans to drill a total of
52 horizontal and 5 vertical wells in 2010. Additionally, the
Company plans to drill up to 3 vertical wells in Block F in 2010.
- With the current 10,000 bopd production level and expected
production from the remaining horizontal drilling program, Bankers
projected 2010 year-end production target is 15,000 bopd.
- Construction of an additional 80,000 barrels of storage capacity
at the Vlore export terminal has commenced and is expected to be
ready by year-end. To improve its "off-take" capacity, Bankers has
initiated a pipeline project that will be implemented in two
phases. Phase one, a 14 kilometre oil pipeline connecting the
oilfield by rail to the export terminal, is underway and is
expected to supplement current truck transport capacity of 15,000
bopd with an additional 9,500 bopd through rail transport by early
2011. Phase two, a 30 kilometre, 70,000 bopd pipeline connecting
the oilfield to the export terminal, is planned for construction
starting in 2011.
- The full collection in April of the $11.8 million outstanding
payments owing from the Albanian refineries operated by Albanian
Refining & Marketing of Oil Sh.A ("ARMO") has resulted in Bankers
resuming oil sales into the domestic market at an equivalent-
to-export price.
- The 2009 year-end independent assessment of the 1.2 billion
barrels of Contingent and Prospective resources at Patos-Marinza
validates the Company's plans for a thermal pilot proposed for the
2010 capital program. Success of such initiatives may lead to the
conversion of significant volumes of these resources to
recoverable reserves and the subsequent implementation of a
commercial field expansion in 2012 and beyond. A waterflood
program is also planned for the Kuçova oilfield in 2010.
- Bankers expects to fund its $152 million 2010 capital program
using funds generated from operations, existing cash resources and
a portion of its unutilized $110 million credit facilities.
- The second quarter 2010 operations update is expected to be
released on July 8. The Financial and Operating results for Q2/10
and Q3/10 will be released on August 13, 2010 and November 12,
2010, respectively.
ANNUAL GENERAL MEETING
The Company's Annual General Meeting (AGM) will take place on May 26, 2010 at 3:00pm MDT (5:00pm EDT) at the Hotel Arts in Calgary, AB, Canada. The AGM will include a general corporate update and will be available via webcast at:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3042380
Bankers updated Corporate Presentation is now available at www.bankerspetroleum.com
BANKERS PETROLEUM LTD.
CONSOLIDATED BALANCE SHEETS
(Unaudited, expressed in thousands of US dollars)
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ASSETS
March 31 December 31
2010 2009
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Current assets
Cash and cash equivalents $ 52,137 $ 59,495
Short-term deposits 9,075 7,275
Restricted cash 1,500 1,500
Accounts receivable 25,295 23,358
Inventory 2,767 2,031
Deposits and prepaid expenses 6,916 5,899
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97,690 99,558
Note receivable 2,749 2,749
Deferred financing costs 13,853 14,383
Property, plant and equipment 216,079 188,130
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$ 330,371 $ 304,820
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LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 27,064 $ 19,505
Current portion of long-term debt 4,639 4,639
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31,703 24,144
Long-term debt 21,779 23,446
Asset retirement obligations 4,275 3,856
Future income tax liability 47,066 39,414
SHAREHOLDERS' EQUITY
Share capital 211,541 206,058
Warrants 1,624 1,739
Contributed surplus 22,562 16,812
Deficit (10,179) (10,649)
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225,548 213,960
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$ 330,371 $ 304,820
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BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENT OF OPERATIONS, COMPREHENSIVE INCOME (LOSS)
AND DEFICIT
FOR THE THREE MONTHS ENDED MARCH 31
(Unaudited, expressed in thousands of US dollars,
except per share amounts)
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2010 2009
--------------------------
Revenue
Oil revenue $ 35,149 $ 13,052
Royalties (7,190) (3,486)
Interest 149 257
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28,108 9,823
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Expenses
Operating 7,925 5,512
Sales and transportation 4,395 1,426
General and administrative 1,926 1,204
Interest and bank charges 311 307
Interest on long-term debt 379 170
Foreign exchange (gain) loss (1,504) 253
Stock-based compensation 3,798 562
Amortization of deferred financing costs 683 -
Depletion, depreciation and accretion 4,975 4,010
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22,888 13,444
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Income (loss) before income tax 5,220 (3,621)
Future income tax (expense) recovery (4,750) 1,129
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Net income (loss) and comprehensive
income (loss) for the period 470 (2,492)
Deficit, beginning of period (10,649) (10,499)
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Deficit, end of period $ (10,179) $ (12,991)
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Basic earnings (loss) per share $ 0.002 $ (0.014)
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--------------------------
Diluted earnings (loss) per share $ 0.002 $ (0.014)
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BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31
(Unaudited, expressed in thousands of US dollars)
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2010 2009
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Cash provided by (used in):
Operating activities
Net income (loss) for the period $ 470 $ (2,492)
Items not involving cash:
Depletion, depreciation and accretion 4,975 4,010
Amortization of deferred financing costs 683 -
Future income tax expense (recovery) 4,750 (1,129)
Stock-based compensation 3,798 562
Unrealized foreign exchange (gain) loss (857) 314
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13,819 1,265
Change in non-cash working capital (1,153) (2,249)
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12,666 (984)
Investing activities
Additions to property, plant and equipment (26,700) (2,835)
Change in non-cash working capital 5,022 (791)
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(21,678) (3,626)
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Financing activities
Issue of shares for cash 4,416 42
Short-term deposits (1,800) 1,000
Financing costs (152) -
Decrease in long-term debt (1,667) (1,177)
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797 (135)
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Foreign exchange gain (loss) on cash and
cash equivalents 857 (314)
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Decrease in cash and cash equivalents (7,358) (5,059)
Cash and cash equivalents, beginning of period 59,495 15,607
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Cash and cash equivalents, end of period $ 52,137 $ 10,548
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Bankers Petroleum Ltd is a Canadian oil company with assets and operations in Albania. The Company operates the Patos-Marinza oilfield, the largest onshore field in Europe. Led by a team of experienced heavy oil specialists, the Company strives to maximize shareholder value through continual growth in production and reserves from this known oil accumulation.
SOURCE Bankers Petroleum Ltd.
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