Big Banc Split Corp T.BNK

the future for bankers hinges on the results of the audit

[dbeaude]

The business model will not work if Bankers has to pay a minimum of $57 million more in taxes each year going forward....that amounts to aggravated financial rape. News clips have indicated that they are currently auditing 2012 and 2013. If the 2012 "independent audit" works out, likely the morons in the tax department will put away their guns. If not then Bankers will have to move on as they will be caught in the precarious position of trying to develop the field without the necessary free cash flow to do so. And unless the Albanians have an end game of operating and developing the field themselves attracting an international operator will be very difficult seeing how they treated a highly professional and responsible developer and operator. The Albanian government is comprised of a bunch of jaded morons that simply cannot see the forest for the trees. Even pulling off this stunt at this point in time with crude at just over $40 per BBL is ample evidence of that. Hope the audit silences these morons once and for all

[lefmike]

Db you're absolutely correct.  This has now turned into a Ripley's Believe It or Not scenario.   If you can't use your Exploration, Development, and Recovery costs as tax exemptions what's the use in going into business it in the first place?   . A Government operating this way ensures that the oil will simply stay in the ground.  It's so basic it flies in

[braincloud]

They aren't saying that they deny the CAPEX. They say that BNK has inflated the CAPEX numbers!!! CAPEX is highly variable and is tied to oil prices. Remember that BNK only spends cash flow so as they have curtailed rig activity the CAPEX is down. Everyone shares in the decline in revenue. Royalty and excise amount to 11% of total production, NOT absolute numbers so its variable. DB suggests

[LordIskander]

I have a feeling this hinges on the diluent and salaries

[LordIskander]

quite worrisome indeed. I've heard opinion makers over there saying that if they don't get profit tax the oil is best left unextracted. Willing to forgo royalties and excise tax. You go figure

[braincloud]

DB, with all due respect, you have it wrong. No body suggests that they "pay a minimum of $57 million". I don't know how you jump to that conclusion.  " Fluctuations in royalty on a per barrell basis are mainly due to changes in underlying oil prices" from the annual report. They don't get a fixed dollar amount they get a fixed PERCENTAGE. This is 11%. It's NOT

[agspo63]

Yes, BUT ... let's recapitulate the facts - Tax dept accuses BNK of a ridiculous fraud after an internal audit - BNK had nothing to be afraid from an audit so they go to international arbitrage. - The brave and smart albanian tax dept blocks internal accounts - ILLEGAL from what I understand - BNK complains to the international court, which ORDERS tax dept to unfreeze accounts - Again the

[agspo63]

... and in the process we lose around 300mil in shares value (aka OUR money) while we wait for audit. I just hope that they come to their senses at one point and we can regain some value.

[duck1964]

This is for the guy that thinks oil will go to $10 these are not the 90's. Most country's around the world that produce oil are in big trouble due to low oil prices at $40 a barrel, With all the trouble brewing in the middle east such as Russia and turkey I can see the war machine already winding up, This is the way for them to drive oil prices higher so stay tuned.

[braincloud]

Maybe. There's trouble brewing for sure. ISIS is the wild card. Saudi's fighting wars on 3 borders another wild card. Seria as well. It's just a cluster fk.

[braincloud]

Now from the facts above where can one see any hope that the albs will respect any future decision of ICC following the audit?  That's one question that remains to be answerd for sure. But, if you look at it from their perspective this claim was made some time ago. They obviously argued back and forth over the course of a year and arrived at the thrid party audit that they both

[agspo63]

BC says : There wasn't any threat to nationalization. Not ever. If you have something that says this I'd like to see it. I grew up in a communist country... Rama's speech regarding "the oil belongs to albanians" got me thinking immediately at a posible take over by the gvt (aka nationalisation). Maybe I am paranoid, but that is it. I am trying to improve :)

[braincloud]

LOL, every time I see something in Albanian and attempt to use Google to translate, it doesn't come out right and doesn't make sense. Lost in translation. It's a reach IMO. Funny, given that there are so many news agencies there you can read several with the same tag line and get completely different views. It's from the communist days when parties used the news media to send out

[lefmike]

agspo63 Your fears I think are appropriate under the circumstqances of your life but I don't think in this instance that is what Mr. Rama was actually trying to say.  Put it this way, the Chinese own the rights to some oil properties in Canada,  AB Govenment says they must do this or do that which the Chinese do not agree with.  The AB Government says it will shut you down

[LordIskander]

there was no threat. All they said was that like in Alberta where I live, the oil belongs to the ppl.

[Alba2014]

Yes , Russians have tried to operate the wells and came with qualified petroleum eng , while Chinese imported production equipment but never try to operate on their own. Since Bankers started to work there every thing changed for better, things that Albanian Government could not do for decades.Now they seems to be "jealous " for Bankers  success.  What

[LordIskander]

also Imperial Oil had the PSC before Bankers (Saxon Energy) and they left.

[braincloud]

It was actually a Polish geologist that discovered the oil deposit back in the early 1930's.

[braincloud]

Thanks ALB for your perspective. It's like what I've been saying. What is Rama's popularity in Albania now? I've met Berisha once. I was surprised at how charming he was and that he spoke multiple languages as well. He too lined his pockets from very humble beginnings unfortunately. BNK has a unique circumstance being the only oil producer with revenue that contributes to the

[Alba2014]

Edi Rama with the heart of an abstract artist but the temperament of Carl Max, He is the center of controversy. He is way more intelligent than Berisha, and he speaks few foreign languages as well, but he is not a politician. Here is an article I was reading this morning about Albania nowdays that I hope many people read it and realize that they are living in lie far too long.Sad by true