Big Banc Split Corp T.BNK

Alternate Symbol(s): T.BNK.PR.A

The investment objectives for the Preferred Shares are to provide their holders with fixed cumulative preferential monthly cash distributions in the amount of $0.05 per Preferred Share ($0.60 per annum or 6.0% per annum on the issue price of $10.00 per Preferred Share) until November 30, 2023 (the Maturity Date) and to return the original issue price of $10.00 to holders on the Maturity Date. The Company will invest on an approximately equally-weighted basis in Portfolio Shares of the following publicly traded Canadian banks: Bank of Montreal; Canadian Imperial Bank of Commerce; National Bank of Canada; Royal Bank of Canada; The Bank of Nova Scotia; and The Toronto-Dominion Bank. The Portfolio will generally be rebalanced on a quarterly basis, starting on September 30, 2020, so that as soon as practicable after each calendar quarter the Portfolio Shares will be held on an approximately equal weight basis.

TSX:BNK - Post by User

Big Banc Split Corp

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Post by CDeeGreenon Nov 14, 2011 11:07pm

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Post# 19237390

RBC Report

COMPANY UPDATE | COMMENT

NOVEMBER 14, 2011

Bankers Petroleum Ltd. (TSX: BNK; AIM: BNK)

Steady Progress

Outperform
Above Average Risk
Price: 5.22
Shares O/S (MM): 247.5
Dividend: 0.00
NAVPS: 9.05
Float (MM): 239.9
Price Target: 9.00
Implied All-In Return: 72%
Market Cap (MM): 1,292
Yield: 0.0%
P/NAVPS: 0.6x
All market data in CAD; all financial data in USD
An inline quarter, newsflow steadily picking up
Q3/11 Numbers in line: Revenue of $94m ($93m forecast); operating profit of
$45m beat our $37m forecast, but a larger than forecast (deferred) tax charge
reduced net income to $14m ($17m forecast). Cash flow from operations of $43m
was broadly in line with our $48m estimate and with lower than anticipated
spending the company ended the period with cash of $47m ($42m forecast).
Prices: New export market agreements for 2012 have been agreed at levels
higher than the 2011 contracts. ARMO, the Albanian refinery, also agreed to a
higher price in 2012. The 2012 pricing agreements represent an average 7%
increase over the 2011 Patos-Marinza oil price.
Wells and production: Current production at the Patos-Marinza oilfield is
14,750b/d. Management continues to focus on field appraisal/reserves additions -
four of the ten wells drilled and completed in Q4/11 were delineation wells - and
two of the existing drilling rigs recently encountered mechanical issues, so the
planned year-end exit rate is, as expected, at the bottom end of management's
range - 16,000b/d. A fifth rig will commence operations shortly.
Newsflow: First production is scheduled to commence from Kucova by year-end;
year-to-date management’s focus has been on pressure maintenance/water
injection. This should provide greater clarity on 2012-13 production growth.
Steam injection is scheduled to commence later this month as the first phase of
the thermal pilot programme – a 60 day steam cycle is planned. The first of
several gas exploration wells on Block F will spud in January.
Outlook: We see the potential for steady production and cash flow growth in
2012. Management’s initiatives - the thermal campaign (and related gas
exploration programme) and the exploitation of Kucova - could generate some
new interest in early 2012.