Energy Summary for Jan. 30, 2015................
Energy Summary for Jan. 30, 2015
2015-01-30 20:48 ET - Market Summary
by Stockwatch Business Reporter
In Albania, Bankers Petroleum Ltd. (BNK), up 26 cents to $2.92 on 3.93 million shares, has lowered its budget to $153-million (U.S.) from $218-million (U.S.). The original budget, released in mid-December, assumed $70 (U.S.) Brent, whereas the new one assumes $50 (U.S.). Bankers wants to be able to finance its program using its funds flow and cash. Its production, which comes entirely from the Patos-Marinza field and is benchmarked against Brent, was previously expected to match the 2014 level (which was 20,687 barrels of oil a day), but Bankers is now forecasting a 5-per-cent decrease (implying 19,650 barrels a day). The bulk of the cut is being absorbed by the drill program. In 2014, Bankers drilled 160 wells, but in December it said it would drill just 90 in 2015, and now it says 60. That drilling will take up about half of the new budget. The rest will go toward facilities and other projects, notably the EOR (enhanced oil recovery) water- and polymer flood programs. Bankers began these programs in early 2013 and says the initial results are "in line with or better than simulation expectations." It plans to convert 20 wells for water or polymer injection this year, down from the original goal of 25 to 30. Bankers did not mention its Kucova field at all, suggesting that this asset is once again on the back burner. Kucova was originally supposed to see two or three wells in the second half of 2013. Instead, it did not see its first well until the fourth quarter of 2014, and it has yet to see a second.