Average Quarterly Production 16,900 bopd and Credit Facility Extension
CALGARY, April 5, 2013 /CNW/ - Bankers Petroleum Ltd. (Bankers or the
Company) (TSX: BNK) (AIM: BNK) is pleased to announce the Company's
first quarter operational update.
Production, Sales and Oil Prices
Average production from the Patos-Marinza oilfield in Albania for the
first quarter of 2013 was 16,916 barrels of oil per day (bopd), 4.7%
higher than 16,163 bopd in the fourth quarter of 2012. Oil sales
during the quarter averaged 16,605 bopd, 3.6% higher than the previous quarter average of 16,033 bopd. The
crude oil inventory at March 31, 2013 was 340,000 barrels, 26,000
barrels higher than 313,000 barrels at December 31, 2012.
The Patos-Marinza first quarter average oil price was approximately
$89.42 per barrel (representing 80% of the Brent oil price of $112.43
per barrel), as compared with the 2012 fourth quarter average oil price
of $78.53 per barrel (71% of the Brent oil price of $110.08 per
barrel).
Drilling Update
Thirty-two (32) horizontal wells were drilled during the first quarter:
thirty-one (31) horizontal production wells and one (1) horizontal
lateral re-drill well in the main area of the Patos-Marinza field.
Twenty-eight (28) of these wells were completed and are on production,
and four (4) will be placed on production this month.
The Company continues to focus horizontal drilling in the primary Driza
reservoir zones and has expanded drilling in several Marinza zones with
encouraging results. Pattern development drilling for secondary
recovery techniques in the Marinza and Lower Driza zones has also
commenced in the first quarter.
The drilling rig damaged in January has now been repaired and the
Company has five drilling rigs in operation.
Secondary and Tertiary Recovery Program
The Company commenced preliminary injectivity testing at the first pilot
polymer flood location. Following the test completion, expected within
the second quarter, progression of the pilot will be sanctioned should
results merit further pilot work at this location.
Block "F"
The second exploration drilling location in Block "F" is scheduled to be
drilled in the second quarter of 2013. Lease access has been obtained
and site construction will commence shortly.
Infrastructure Development
Expansion of crude oil storage capacity continues at the Central
Treatment Facility ("CTF") in the Patos-Marinza field with construction
of an additional 12,000 barrel sales tank. Commissioning of the tank
is projected this summer and will improve our operational treating
capability and storage flexibility.
Credit Facility Update
The International Finance Corporation (IFC) has approved an extension of
the Company's existing credit facility to May 2020, subject to final
documentation. No repayments are required until May 2017, at which
time the facility amount will decrease by 25% annually. Additionally,
IFC's revolving loan facility will increase to $60 million from the
existing $50 million. Discussions with the European Bank for
Construction and Development (EBRD) for corresponding changes to the
existing $50 million revolving loan facility are ongoing, with a
decision expected shortly. In addition, the existing $20 million
revolving facility and $1 million term facility from Raiffeisen Bank
will remain in effect.
Updated Corporate Presentation
For additional information on this operational update, please see the
April 2013 version of the Company's corporate presentation at
www.bankerspetroleum.com.
Conference Call
The Management of Bankers will host a conference call on April, 5 2013
at 6:30 am MDT to discuss this Operations Update. Following
Management's presentation, there will be a question and answer session
for analysts and investors. Mr. David French, Bankers' newly appointed
President and CEO will also be participating on the call.
To participate in the conference call, please contact the conference
operator ten minutes prior to the call at 1-888-231-8191 or
1-647-427-7450. A live audio web cast of the conference call will also
be available on Bankers website at http://www.bankerspetroleum.com or by entering the following URL into your web browser http://www.newswire.ca/en/webcast/detail/1136995/1240855
The web cast will be archived two hours after the presentation on the
website, and posted on the website for 90 days. A replay of the call
will be available until April 19, 2013 by dialing 1-855-859-2056 or
1-416-849-0833 and entering access code 30277987.
Annual General Special Meeting
Bankers Petroleum invites all shareholders to attend its Annual General
Special Meeting to be held on Tuesday, May 21 at The Metropolitan
Centre, Calgary Alberta. This years' meeting will be held in the
Travoli room at 3:00 pm (MST).
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Caution Regarding Forward-looking Information
Information in this news release respecting matters such as the expected
future production levels from wells, future prices and netback, work
plans, anticipated total oil recovery of the Patos-Marinza and Kuçova
oilfields constitute forward-looking information. Statements
containing forward-looking information express, as at the date of this
news release, the Company's plans, estimates, forecasts, projections,
expectations, or beliefs as to future events or results and are
believed to be reasonable based on information currently available to
the Company.
Exploration for oil is a speculative business that involves a high
degree of risk. The Company's expectations for its Albanian operations
and plans are subject to a number of risks in addition to those
inherent in oil production operations, including: that Brent oil prices
could fall resulting in reduced returns and a change in the economics
of the project; availability of financing; delays associated with
equipment procurement, equipment failure and the lack of suitably
qualified personnel; the inherent uncertainty in the estimation of
reserves; exports from Albania being disrupted due to unplanned
disruptions; and changes in the political or economic environment.
Production and netback forecasts are based on a number of assumptions
including that the rate and cost of well takeovers, well reactivations
and well recompletions of the past will continue and success rates will
be similar to those rates experienced for previous well
recompletions/reactivations/development; that further wells taken over
and recompleted will produce at rates similar to the average rate of
production achieved from wells recompletions/reactivations/development
in the past; continued availability of the necessary equipment,
personnel and financial resources to sustain the Company's planned work
program; continued political and economic stability in Albania; the
existence of reserves as expected; the continued release by Albpetrol
of areas and wells pursuant to the Plan of Development and Addendum;
the absence of unplanned disruptions; the ability of the Company to
successfully drill new wells and bring production to market; and
general risks inherent in oil and gas operations.
Forward-looking statements and information are based on assumptions that
financing, equipment and personnel will be available when required and
on reasonable terms, none of which are assured and are subject to a
number of other risks and uncertainties described under "Risk Factors"
in the Company's Annual Information Form and Management's Discussion
and Analysis, which are available on SEDAR under the Company's profile
at www.sedar.com.
There can be no assurance that forward-looking statements will prove to
be accurate. Actual results and future events could differ materially
from those anticipated in such statements. Readers should not place
undue reliance on forward-looking information and forward looking
statements.
Review by Qualified Person
This release was reviewed by Suneel Gupta, Executive Vice President and
COO of Bankers Petroleum Ltd., who is a "qualified person" under the
rules and policies of AIM in his role with the Company and due to his
training as a professional petroleum engineer (member of APEGA) with
over 20 years' experience in domestic and international oil and gas
operations.
About Bankers Petroleum Ltd.
Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and
production company focused on developing large oil and gas reserves.
In Albania, Bankers operates and has the full rights to develop the
Patos-Marinza heavy oilfield, has a 100% interest in the Kuçova
oilfield, and a 100% interest in Exploration Block "F". Bankers'
shares are traded on the Toronto Stock Exchange and the AIM Market in
London, England under the stock symbol BNK.
SOURCE: Bankers Petroleum Ltd.
