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Bankers Petroleum Announces 2012 Reserves Report

224 Million Barrels of Proved plus Probable (2P) Reserves; NPV of $1.86 billion Average Production 1st Quarter to Date 16,800 bopd

CALGARY, Feb. 24, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to provide the results of its December 31, 2012 independent reserves evaluation. Evaluations were conducted by RPS Energy Canada Ltd. (RPS) for the Patos-Marinza oilfield, Albania and by DeGolyer and McNaughton Canada Ltd. (D&M) for the Kuçova oilfield, Albania and were prepared in accordance with Canadian National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

Total Company Reserves Summary

Gross Oil Reserves - Using Forecast Prices (Million barrels)

                    2012                           2011                             

Patos-Marinza Kuçova Total Patos-Marinza Kuçova Total %

                                     Albania                        Albania     

Developed 25.6 - 25.6 25.8 - 25.8 -1 Producing

      Developed     1.8           -      1.8       -             -      -           

Undeveloped 106.9 3.4 110.3 143.4 3.2 146.6 -25

Total Proved 134.3 3.4 137.7 169.2 3.2 172.4 -20 (1P)

Probable 77.9 8.5 86.4 87.1 7.6 94.7 -9


Total Proved 212.2 11.9 224.1 256.3 10.8 267.1 -16 Plus Probable


Possible 110.5 21.5 132.0 138.9 20.3 159.2 -17

    Total Proved,                                                                   
    Probable &                                                                      

Possible (3P) 322.7 33.4 356.1 395.2 31.1 426.3 -16


· 2P Reserves after tax value at 10% is $1.86 billion ($7.31 per share);

· 2012 Company average production was 15,020 bopd for an annual total volume of 5.45 million barrels (4.1% of total proved reserves);

· Reserves Life Index is 30+ years;

· Technical adjustments to the estimated ultimate recovery (EUR) per horizontal well and type curves reflect production performance, improved geological mapping, reservoir modeling, fluid testing and drilling results;

· Reserve volumes have been adjusted to reflect reduced recoverable oil booking in non-core area extensions of the field where drilling to date has been limited.

Net Present Value at 10% - After Tax Using Forecast Prices ($ millions)

                  2012                           2011                           % 
                  Patos-Marinza Kuçova Total     Patos-Marinza Kuçova Total     
                                         Albania                        Albania     


Developed 390 - 390 347 - 347 12 Producing

    Developed     16            -      16        -             -      -           

Undeveloped 515 26 541 647 22 669 - 19


Total Proved 921 26 947 994 22 1,016 - 7

Probable 793 115 908 854 103 957 - 5


Total Proved 1,714 141 1,855 1,848 125 1,973 - 6 Plus Probable

Possible 881 354 1,235 1,377 344 1,721 - 28

Total Proved, 2,595 495 3,090 3,225 469 3,694 - 16 Probable &


    Reserves Value 10% Discounted, After Tax US$/Share US$/bbl

1P $3.73 $6.88

2P $7.31 $8.28

3P $12.17 $8.68

Basic shares outstanding of as of December 31, 2012 were approximately 254 million (274 million diluted).

Values are based on RPS (Patos-Marinza) and D&M (Kuçova) January 1, 2013 price forecast tables summarized below:

Reserve Auditor Price Decks - Dated Brent

BRENT Oil Price Forecast US$/bbl

Year RPS D&M

2013 $108.00 $111.00

2014 $102.30 $108.35

2015 $98.20 $105.72

2016 $94.80 $107.88

2017 $97.42 $106.62

2018 $99.37 $107.10

2019 $101.35 $110.36

2020 $103.38 $112.57

2021 $105.45 $114.82

2022 $107.56 $117.12

2023 $109.71 $119.46

2024 $111.90 $121.85

2025 $114.14 +2.0% Thereafter

Patos-Marinza Crude Pricing

The average realized sales price the Company is receiving for crude oil from the Patos-Marinza and Kuçova oilfields are at a discount to Brent oil. Currently, the average sales price for export sales is approximately 80% of Brent (an increase of 13% over the 2012 average realized pricing of 71% of Brent).

Finding and Development Costs (F&D)

In the 2012 2P development case, the horizontal well count has been increased from 910 wells at a cost of $1.4 million per well in the previous year to 1,085 total wells at a cost of $1.2 million per well in 2013 and beyond.

Total future undiscounted capital costs for Patos-Marinza and Kuçova are projected to be US$2.3 billion, US$2.4 billion and US$2.7 billion on a 1P, 2P and 3P basis, respectively. This represents the following F&D costs, calculated as total future development capital divided by recoverable reserves excluding currently developed PDP and PDNP reserves:

Reserves US$/bbl

1P reserves $21.04

2P reserves $12.31

3P reserves $8.10


Original Oil in Place

The Original Oil in Place ("OOIP") volumes in the reserves area of the field
has been revised to 2.4 billion barrels, compared to 2.6 billion barrels at the
end of 2011. OOIP outside the reserves area is 2.7 billion barrels compared to
5.1 billion barrels in 2011.

Kucova OOIP resource estimate remains at 297 million barrels.

Abby Badwi, President and CEO of Bankers commented "The 2012 reserves are
attributable to primary recovery methods by continued implementation of
horizontal drilling which has been demonstrating positive results based on
extended periods of actual well and reservoir performance. Well counts have
increased marginally from the 2011 forecast, however, individual well and
project economic metrics remain strong. While additional drilling capital and
corresponding reserves could have been added to the development plan in lower
recovery areas and zones in the field, the Company elected to defer these plans
until further evaluation drilling is conducted in these areas. Looking forward
to the waterflood and polymer flood development opportunities, a successful
thermal pilot and confirming an economic source for natural gas, the Company
will be able to increase and accelerate the overall recovery from this world
class asset."

Operational Update

Average production for the first quarter to date was 16,800 bopd; this rate is
4.0% higher than the fourth quarter average production of 16,163 bopd.

Last month one of the five drilling rigs operating for the Company in Albania
was damaged during mobilization between locations. The rig is currently being
repaired and is expected to resume drilling next week. Bankers 2012 production
forecast remains unchanged.

The Government of Albania declared last week that the process for the
privatization of Albpetrol was unsuccessful and has been terminated. There was
no further disclosure regarding future plans for proceeding with this process.

Further details, including the February 2013 Corporate Presentation, are
available on the Company's website

Conference Call

The Management of Bankers will host a conference call on February 25, 2013 at
6:30 am MST to discuss this reserves report. 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 or by entering the following URL into your web browser

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 March 11, 2013 by dialing 1-855-859-2056 or 1-416-849-0833 and entering
access code 11243361.

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

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 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:

Abby Badwi
President and Chief Executive Officer
(403) 513-2694

Doug Urch
Executive VP, Finance and Chief Financial Officer
(403) 513-2691

Mark Hodgson
VP, Business Development
(403) 513-2695



Canaccord Genuity Limited
Henry Fitzgerald-O'Connor
+44 0 207 523 8000


FirstEnergy Capital LLP
Hugh Sanderson / David van Erp
+44 0 207 448 0200



-0- Feb/25/2013 07:19 GMT

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