It's a good day for the shorts + RBC Research Let them bash, but keep in mind TSX is down almost 200 points. It's RED all over for most
Here is some stuff I found from RBC Direct research dated June 5th. Target price $4.50
I'll stick to that and will wait for July news
Bankers Petroleum (TSX: BNK; Outperform, C$4.50 Price Target)
Operationally June is likely to be a quiet month for Bankers. However, Albania’s elections on
23rd June may generate some uncertainty; but as Bankers produces ~95% of the country’s oil
and it is a major investor in the region we are not expecting any disruption.
In early July we expect management to publish its Q2/13 operating update. We currently
forecast Q2/13 production of 17,600b/d and sales of 17,250b/d (up from 16,600b/d in
Q1/13) with an average realisation of $85.80/bbl. As output in May was running at
~17,500b/d our forecast could be a little light on volumes, but given Brent benchmark crude
price is currently running below our $108/bbl Q2/13 forecast our $135m Q2/13 revenue
forecast remains reasonable, in our view.
With respect to ongoing activity, the company may confirm in July that its F block exploration
well, which is targeting gas for power generation/EOR, has spudded.
This month we have finessed our Bankers sum-of-the-parts valuation to better reflect the
distinction between core NAV and risked upside. Our new PV10% is C$5.46/share, up from
C$5.24/share, which comprises of a C$4.47/share (280p) core NAV dominated by the
~160mmbbl of remaining reserves in the core area of the Patos Marinza field; our risked
upside of C$0.98/share comprises of the remaining ~60mmbbl of 2P reserves that are
located in the southern and peripheral Patos Marinza field and the Kucova redevelopment.