Bankers Petroleum Operational Update for the Second Quarter 2013
CALGARY, July 4, 2013
Average Quarterly Production 17,800 bopd
CALGARY, July 4, 2013 /PRNewswire/ - Bankers Petroleum Ltd. (Bankers or the
Company) (TSX: BNK) (AIM: BNK) is pleased to announce the Company's second
quarter operational update.
Production, Sales and Oil Prices
Average production from the Patos-Marinza oilfield in Albania for the second
quarter of 2013 was 17,800 barrels of oil per day (bopd), 5% higher than
16,919 bopd in the first quarter. Oil sales during the quarter averaged
18,008 bopd, 8% higher than the previous quarter average of 16,605 bopd. The
crude oil inventory at June 30, 2013 was 330,000 barrels, 10,000 barrels less
than 340,000 barrels at March 31, 2013.
The Patos-Marinza second quarter average oil price was approximately $80.36
per barrel (representing 78% of the Brent oil price of $102.44 per barrel), as
compared with the first quarter average oil price of $88.70 per barrel
(representing 79% of the Brent oil price of $112.57 per barrel).
For the six months ended June 30, 2013 oil sales were 17,310 bopd ($84.34 per
barrel) an increase of 26% from 13,724 bopd ($80.57 per barrel) for the
comparable 2012 period.
Thirty-nine (39) horizontal wells were drilled and rig released during the
second quarter in the main area of the Patos-Marinza oilfield: thirty-five
(35) horizontal production wells and four (4) horizontal lateral re-drills.
Thirty-four (34) of these wells were completed and are on production, and the
remaining five (5) will be placed on production in July.
The Company continues to focus on pad drilling within production fairways and
ongoing legacy vertical well remediation, where necessary, ahead of the
program. Pattern development drilling for secondary recovery techniques in the
Marinza and Lower Driza zones has continued in the second quarter.
Secondary and Tertiary Recovery Program
The Company progressed with the first polymer flood pilot, converting a second
well to injection. With continued satisfactory results, a further three wells
are expected to be converted in the third quarter. Contingent on pilot
results, commercial polymer preparation equipment has been sourced for
delivery in 2014. A water flood pattern was also initiated with the first well
converted and placed on injection early in the quarter and a second well
converted and placed on injection in July.
The exploration well in Block "F" was spudded June 30^th, 2013, and is
expected to take 21 days to drill. This is the second exploration well in
Block "F" and will complete Bankers two well obligation on the block.
Key 2013 infrastructure projects including flow lines and satellite treatment
facilities, tank storage expansion, and sludge treatment facilities commenced
construction at Patos-Marinza in the second quarter and will continue
throughout the balance of the year.
Updated Corporate Presentation
For additional information on this operational update, please see the July
2013 version of the Company's corporate presentation at
The Management of Bankers will host a conference call on July 5, 2013 at 7:00
am MDT to discuss this Operations Update. Following Management's presentation,
there will be a question and answer session for analysts and investors.
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 July 19, 2013 by dialing 1-855-859-2056 or 1-416-849-0833 and entering
access code 99227901.
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
SOURCE Bankers Petroleum Ltd.
David French President and Chief Executive Officer (403) 513-6930
Doug Urch Executive VP, Finance and Chief Financial Officer (403) 513-2691
Mark Hodgson VP, Business Development (403) 513-2695
Canaccord Genuity Limited
+44 0 207 523 8000
FirstEnergy Capital LLP
Hugh Sanderson / David van Erp
+44 0 207 448 0200
Press spacebar to pause and continue. Press esc to stop.