News.Bankers produces 1,200 barrels per day at Patos-Marinza
Bankers Petroleum Ltd (TSX-V:BNK) Shares Issued 255,359,373Last Close 9/20/2004
$0.39Tuesday September 21 2004 - News Release
Mr. Richard Wadsworth reports
Bankers Petroleum Ltd. has provided an update on the company work program and
on the National Instrument 51-101 report being conducted on the Patos Marinza oil
field in Albania. The company is earning a 100-per-cent working interest in this, the
largest onshore heavy oil field in Europe, by spending $2-million (U.S.) in work
commitments.
Patos-Marinza work program update
Production is now 1,200 barrels of oil per day and expected to continue to increase
with further optimization and recompletions.
The following were accomplished over the past month:
25 wells are on production with 1,200 barrels of oil per day of production;
five wells have been taken over from Albpetrol. Three of these wells have been placed
on production. It is anticipated that the remaining two wells will be placed on
production within the next month;
the estimated average cost of these five wells will be less than $50,000 (U.S.), which
is significantly lower than budgeted due to surplus equipment being used and these
leases requiring minimal remediation and construction;
environmental baseline for 28 original wells and recent five wells has been
completed;
a takeover list of 20 wells has been provided to Albpetrol for 2004. This list has been
approved by Albpetrol and preparations are under way to commence rehabilitation of
the first five wells within the next month. Rehabilitation will include the removal of
the derrick, equipment and remediation of well site;
procurement of all materials and equipment for 12 wells has been placed and delivery
is scheduled for November. This includes equipment such as tubing, rods, wellheads,
driveheads, prime movers and downhole pumps;
set up of the truck unloading point at the Fier refinery is complete and all oil sales
have been delivered through this point for the past month; and
August, 2004, production was 27,745 barrels of oil and sales delivered were 24,810
barrels of blend oil (produced oil plus diluent).
NI 51-101 evaluation progress update
Adams Pearson and Associates (APA) of Calgary, Alta., has commenced an evaluation
and update of the Patos Marinza engineering reserves report to NI 51-101 standards.
The geophysical and geological review of the reservoir will be completed by Petrel
Robertson Consultants (PRCL) of Calgary, Alta.
The geophysical review of the seismic and log data for reservoir structural orientation
has been completed. Definition of major thrust and transfer faults has been verified
by PRCL and is consistent with the geological static model previously developed.
The compartmentalized nature of the reservoir is consistent with historical
production results. The sand top and bottom locations have been reviewed for the
primary D1 producing sand with little change. The majority of questions under the
geophysical review have been reviewed and answered. Further geological database
quality control and mapping is under way, and oil volumetrics are being set up and
assessed.
The PRCL geological draft report is in progress. The production data are currently
being downloaded for review.
Granting of options
A total of 100,000 option shares at a price of 50 cents were granted to employees on
Sept. 1, 2004. These options have a term of five years.
Bankers Petroleum continues to review similar development opportunities in Albania
and other countries involving large existing fields, in addition to reviewing
exploration targets with large production and reserves potential.