Bankers Petroleum Operational Update for the Second Quarter 2014

Jul 07, 2014, 07:00 ET from Bankers Petroleum Ltd.

Average Quarterly Production 20,630 bopd

CALGARY, July 7, 2014 /PRNewswire/ - Bankers Petroleum Ltd. (Bankers or the Company) (TSX: BNK, AIM: BNK) is pleased to announce the Company's second quarter operational update.

Production, Sales and Oil Prices

Average production from the Patos-Marinza oilfield in Albania for the second quarter of 2014 was 20,630 barrels of oil per day (bopd), 3.6% higher than 19,911 bopd in the first quarter of 2014.

Oil sales during the quarter averaged 21,627 bopd, 17.3% higher than the previous quarter average of 18,435 bopd, with inclusion of the export cargo that carried over from the first quarter into the first few days of April.  Crude oil inventory at June 30, 2014, decreased 20% to 354,000 barrels, 90,000 barrels lower than 444,000 barrels at March 31, 2014.

The Patos-Marinza second quarter average oil price was approximately $86.68 per barrel (representing 79% of the Brent oil price of $109.63 per barrel), as compared with the first quarter average oil price of $87.39 per barrel (representing 81% of the Brent oil price of $108.21 per barrel).

For the six months ended June 30, 2014, average oil sales were 20,040 bopd ($87.00 per barrel) an increase of 16% from 17,310 bopd ($84.39 per barrel) for the comparable 2013 period.

Drilling Update

Forty-two (42) wells were drilled and rig released during the second quarter in the main area of the Patos-Marinza oilfield: thirty-nine (39) horizontal production wells and three (3) horizontal lateral re-drills. Thirty-four (34) of these wells were completed and are on production with the remaining eight (8) to be placed on production in July pending drilling rig move off the pad, well completions and facilities tie-in.

The Company continues to focus on development in the main area of the Patos-Marinza oilfield through multi-well pad drilling with six drilling rigs currently in operation.

Secondary Recovery Program

Close monitoring continues on the water and polymer flood programs.  All patterns continue to show positive early stage production trends. Reservoir pressure and production response are rising and following current projection models with injection performance achieving target rates indicative of good reservoir conformance.

To-date Bankers has implemented three (3) water flood injectors in the Upper Marinza zone (M0 reservoir sand) and nine (9) polymer flood injectors in three (3) separate Lower Driza zones (D5, D4, and D3 reservoir sands) in the Patos-Marinza oilfield.  The Company plans to expand the patterns with conversion of up to an additional ten (10) wells in the second half of the year with a projected schedule of three (3) polymer flood injector conversions in the third quarter, six (6) polymer flood conversions in the fourth quarter, and one (1) water flood conversion in the fourth quarter.

Procurement of mixing and pumping equipment is underway to support the expansion along with construction of pipelines to move polymer solution and emulsion between central mixing and treating locations to pad locations for improved efficiency and cost effectiveness.

Infrastructure Development

In the second quarter of 2014, the Company commenced disposal in two (2) water disposal wells drilled in the first quarter and commenced operation of the new sludge treatment facility.  Three (3) well pads in the northern and central areas of the Patos-Marinza oilfield have been electrified with two (2) pads completed in the second quarter.  An additional four to six (4 to 6) pads are projected to be electrified in the second half of the year.

Emulsion gathering projects in the northern and western areas of the main field are progressing with construction projected to start this summer for completion in the first quarter of next year. This will significantly reduce the in-field trucked volume costs by $0.40 to $0.50 per barrel over the next year.

Bankers remains focused on key infrastructure projects aimed at reducing costs and optimizing operations including diluent reduction, improved emulsion treating, expansion of the flow-line system, sour treatment facilities and gas gathering.

Updated Corporate Presentation

For additional information on this Operational Update please see the Company's July 2014 corporate presentation at

Conference Call

The Management of Bankers will host a conference call on July 7, 2014, at 6:30 am MDT to discuss this Operational 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 or by entering the following URL into your web browser,

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 21, 2014, by dialing 1-855-859-2056 or 1-416-849-0833 and entering access code 67552347.

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

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 Chief Operating Officer 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.