Bankers Petroleum Announces 2012 Reserves Report
CALGARY, Feb. 24, 2013
224 Million Barrels of Proved plus Probable (2P) Reserves; NPV of $1.86
Average Production 1^st Quarter to Date 16,800 bopd
CALGARY, Feb. 24, 2013 /PRNewswire/ - 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)
Patos-Marinza Kuçova Total Patos-Marinza Kuçova Total %
Developed 25.6 - 25.6 25.8 - 25.8 -1
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
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
Possible 110.5 21.5 132.0 138.9 20.3 159.2 -17
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 ($7.31 per share);
*2012 Company average production was 15,020 bopd for an annual total volume
of 5.45 million barrels (4.1% of total proved reserves);
*Reserves Life Index is 30+ years;
*Technical adjustments to the estimated ultimate recovery (EUR) per
horizontal well and type curves reflect production performance, improved
geological mapping, reservoir modeling, fluid testing and drilling
*Reserve volumes have been adjusted to reflect reduced recoverable oil
booking in non-core area extensions of the field where drilling to date
has been limited.
Net Present Value at 10% - After Tax Using Forecast Prices ($ millions)
2012 2011 %
Patos-Marinza Kuçova Total Patos-Marinza Kuçova Total
Developed 390 - 390 347 - 347 12
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
Possible 881 354 1,235 1,377 344 1,721 -28
Total Proved, 2,595 495 3,090 3,225 469 3,694 -16
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
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:
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."
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 www.bankerspetroleum.com.
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 www.bankerspetroleum.com or by entering the following URL into your
web browser http://www.newswire.ca/en/webcast/detail/1113879/1214189
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 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 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.
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
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