Bankers Petroleum Operational Update for the Third Quarter 2013
CALGARY, Oct. 4, 2013
Average Quarterly Production 18,541 bopd
CALGARY, Oct. 4, 2013 /PRNewswire/ - Bankers Petroleum Ltd. (Bankers or the
Company) (TSX: BNK, AIM: BNK) is pleased to announce the Company's third
quarter operational update.
Production, Sales and Oil Prices
Average production from the Patos-Marinza oilfield in Albania for the third
quarter of 2013 was 18,541 barrels of oil per day (bopd), 3.7% higher than
17,886 bopd in the second quarter. Oil sales during the quarter averaged
18,332 bopd, 1.8% higher than the previous quarter average of 18,008 bopd.
The crude oil inventory at September 30, 2013 was 349,000 barrels, 19,000
barrels higher than 330,000 barrels at June 30, 2013.
The Patos-Marinza third quarter average oil price was approximately $86.88 per
barrel (representing 79% of the Brent oil price of $110.37 per barrel), as
compared with the second quarter average oil price of $80.45 per barrel
(representing 79% of the Brent oil price of $102.43 per barrel).
For the nine months ended September 30, 2013 oil sales were 17,655 bopd
($85.26 per barrel) an increase of 23% from 14,393 bopd ($80.21 per barrel)
for the comparable 2012 period.
Thirty-four (34) horizontal wells were drilled and rig released during the
third quarter in the main area of the Patos-Marinza oilfield: thirty-two (32)
horizontal production wells and two (2) horizontal lateral re-drills.
Twenty-five (25) of these wells were completed and are on production, and the
remaining nine (9) will be placed on production in October pending rig move
off the pad, well completion, and facilities build.
Bankers continues to develop the field through pad drilling of multiple zones
within the core area of the Patos-Marina oilfield. In conjunction with the
primary drilling program, the Company will continue to expand on the water and
polymer flood patterns.
In addition, the Company drilled the second exploration well on Block "F"
early in the third quarter and has commenced lease construction for the first
horizontal development well at Kuçova which is expected to be spud in the
Secondary and Tertiary Recovery Program
The Company continues to monitor its Upper Marinza water flood and Lower Driza
polymer flood patterns with initial production response expected in the first
half of 2014. The water flood patterns include three (3) injection wells with
the third injector added in August. The polymer flood patterns include two
(2) injection wells, plus a third injector which has been converted in
September and will commence injection in October. Fourth quarter plans
include additional conversion of three (3) polymer injection and up to four
(4) water injection wells.
Bankers continues to focus on key infrastructure projects aimed at reducing
cost and optimizing operations in the field. Foundation work has been
completed for an additional satellite treating facility in the north-central
region of the Patos-Marinza field as well as new sludge treatment facilities,
with tank construction underway. Additional work on flow-lines, sour treatment
facilities, and cascade systems continue in the fourth quarter.
Updated Corporate Presentation
For additional information on this operational update, please see the October
version of the Company's corporate presentation at www.bankerspetroleum.com.
The Management of Bankers will host a conference call on October 4, 2013 at
7:00 am MDT 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/1234115/1359487.
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 October 18, 2013 by dialing 1-855-859-2056 or 1-416-849-0833 and
entering access code 74626638.
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.
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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