Bankers Petroleum Operational Update for the Fourth Quarter 2012
Average Quarterly Production 16,160 bopd
CALGARY, Jan. 7, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK, AIM: BNK) is pleased to announce the following fourth
quarter operational update.
PRODUCTION, SALES AND OIL PRICES
Average production for the fourth quarter was 16,163 bopd, representing a 3.5%
increase from 15,616 bopd in the third quarter. While late November and early
December production volumes were impacted by heavy rains, production continued
to grow steadily. Average oil production for 2012 was 15,020 bopd, 15% higher
than 2011 average production of 13,051 bopd.
Oil sales from the Patos-Marinza oilfield in Albania during the fourth quarter
averaged 16,033 bopd. Average oil sales for 2012 were 14,805 bopd, 16% higher
than 2011 sales of 12,784 bopd. Crude oil inventory on December 31st was
313,000 barrels, an increase of 12,000 barrels from September 30th.
The Patos-Marinza fourth quarter average oil price was approximately US$79.12
per barrel, representing 72% of the Brent oil price of US$110.02 per barrel, as
compared with the third quarter average oil price of US$79.58 per barrel (73%
of Brent oil).
The average oil price for 2012 was US$79.91 per barrel (72% of Brent oil), a
10% increase from US$72.84 per barrel (65% of Brent oil) for 2011.
Twenty-nine (29) wells have been drilled during the fourth quarter: twenty (20)
horizontal production wells, six (6) horizontal lateral re-drill wells, one (1)
appraisal well and two (2) vertical core wells in the main area of the
Patos-Marinza field. Nineteen (19) of the horizontal production wells have been
completed and are on production plus an additional two (2) horizontal laterals
that were drilled from the wellbore of the two cored wells.
A total of 128 wells were drilled in 2012: 111 horizontal production wells,
seven (7) lateral re-drills, one (1) appraisal well, four (4) vertical core
delineation wells, and four (4) water disposal wells in the Patos-Marinza
field, plus one (1) exploration well in Block "F".
Four drilling rigs are currently operating at Patos-Marinza and drilling in the
field. The fifth rig was loaned to another operator in the country for an eight
week term and is anticipated to resume operations at Patos-Marinza in the next
SECONDARY AND TERTIARY RECOVERY PROGRAMS
Data gathering and analysis for secondary and enhanced recovery planning
continued with the objective to identify the most suitable reservoir layers and
areas of the field to initiate water-flood, polymer-flood and enhanced oil
Two (2) water-flood patterns, one in each of the Lower Driza and Upper Marinza
formations will be initiated in 2013. A third water-flood pattern in the Lower
Driza is planned for later in the year along with a polymer-flood pattern.
Initial results from these initiatives are expected within 12 months from
With the data collected from the first thermal pilot and additional detailed
data including special core analysis of the expanded 2012 coring program,
prospect areas are being selected and data is being gathered to design a second
EXPLORATION BLOCK "F"
The second Block "F" exploration location has been selected and site
construction is underway. The well is expected to spud within the first
The Central Treatment Facility ("CTF") is being expanded with construction of
an additional 2,000 m3 crude oil sales storage tank to allow additional
operational flexibility in the Patos-Marinza field.
Planning and construction for a new satellite facility in the north-central
area of the field is also underway for scheduled completion in the third
quarter of 2013. These facilities, along with additional in-field flow-lines,
will improve the crude oil treating performance in the field.
Planning and application to gain preliminary approvals for the second phase of
the crude oil sales pipeline extending 35 km from Fier to the export terminal
at Vlore is underway and will continue through 2013.
Geological and engineering evaluations continue with plans to drill a vertical
core well in the second quarter of 2013. Additional horizontal production
drilling targets are scheduled in the third quarter to further test water-flood
recovery in the Arreza Pool.
Well take-over and reactivations are also expected in the Arreza Pool in two
phases, with the first set of well take-overs scheduled for the first quarter
and the second tranche of wells in the third quarter of 2013.
Extensive soil and groundwater assessments were completed in 2012 and it was
determined that impacts from historical operations are less than previous
Environmental cleanup of more than 200 older leases taken-over from Albpetrol
was completed in 2012 in conjunction with the water control program. This
program continues to demonstrate improvement in oil rate and reduced water-cuts
in wells and areas affected by water influx issues.
The Company has initiated design and construction of a commercial scale sludge
treatment operation to help reclaim oil from the sludge on old leases in the
production area as part of on-going lease clean-up activities.
The Company continues discussions with the European Bank for Reconstruction and
Development (EBRD) and the International Finance Corporation (IFC), its
reserve-based lenders, for an increase to its existing $110 million credit
facility. Based on the 2011 year-end independent reserves evaluation, the
underlying valuation of the proved reserve basis increased over 275% on a 10%
discounted net present value basis since the 2008 year-end reserves, upon which
the existing 2009 credit facility is based.
In the interim, the Company has now received approval from the banks to defer
the scheduled October 2013 repayment to January 2014. At December 31, 2012,
Bankers had drawn $86 million on this facility.
UPDATED CORPORATE PRESENTATION
For additional information on this operational update, please see the January
2013 version of the Company's corporate presentation at
The Management of Bankers will host a conference call on January 7, 2013 at 7:
00am MST to discuss this Operational Update. Following Management's
presentation, there will be a question and answer session for analysts and
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
www.bankerspetroleum.com or by entering the following URL into your web browser
http://www.newswire.ca/en/webcast/detail/1095065/1193007. 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 January 21,
2013 by dialing 1-855-859-2056 or 1-416-849-0833 and entering access code
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 Chief
Operating Officer 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 engineer (member of APEGGA) 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 and 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
SOURCE: Bankers Petroleum Ltd.
For further information:
President and Chief Executive Officer
Executive VP, Finance and Chief Financial Officer
VP, Business Development
Canaccord Genuity Limited
+44 0 207 523 8000
FirstEnergy Capital LLP
Hugh Sanderson / David van Erp
+44 0 207 448 0200
-0- Jan/07/2013 13:00 GMT
Press spacebar to pause and continue. Press esc to stop.