Bankers Petroleum Announces 2013 Third Quarter Financial and Operational Results

Bankers Petroleum Announces 2013 Third Quarter Financial and Operational 
Results 
Accumulated Free Cash Flow of $32 Million and Q4 Average Production to Date 
19,050 bopd 
CALGARY, Nov. 8, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the 
"Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2013 third quarter 
financial and operational results. During the quarter, Bankers achieved its 
third consecutive quarter of free cash flow and record production levels. 
                     Three months ended        Nine months ended
Results at a
Glance                      September 30              September 30 
($000s, except as     2013         % change
noted)                        2012             2013      2012 % change 
Financial                                                              
Oil revenue     146,665 115,054      27% 411,065   316,309      30% 
Net operating            58,159 
income           82,725              42% 225,032   158,882      42% 


    Net income       19,507  12,274      59%  46,708    31,292      49%
       Per - basic                                       0.12      50%
     share ($)        0.08    0.05      60%    0.18
           -                                             0.12      50%
           diluted
           ($)        0.08    0.05      60%    0.18


Funds generated          48,308 
from operations             ( ) 
( )              71,074              47% 198,210   139,539      42% 


       Per - basic                                       0.55      42%
     share ($)        0.28    0.19      47%    0.78


Capital                  53,526 
expenditures     66,199              24% 165,915   168,859     (2%) 
Operating                                                              
Average sales            15,715 
(bopd)           18,332              17%  17,655    14,393      23% 
Average price             79.58 
($/barrel)        86.96               9%   85.29     80.21       6% 
Netback                   40.23 
($/barrel)        49.05              22%   46.69     40.29      16% 
Average Brent            109.50 
oil price 
($/barrel)       110.29               1%  108.46    112.21     (3%) 


                                                                      
                              September 30,
                                       2013 December 31, 2012  % change

Cash and deposits                    40,659            38,740        5%

Working capital                     121,973            88,799       37%

Total assets                        971,587           825,816       18%

Long-term debt                       98,153            97,158        1%

Shareholders'             
equity                              542,655           483,032       12%
    Highlights for the quarter and nine months ended September 30, 2013 are:
    --  Average oil production for the three months ended September 30,
        2013 was 18,541 barrels of oil per day (bopd), 4% higher as
        compared to 17,886 bopd in the second quarter of 2013 and 19%
        higher than 15,616 bopd in the third quarter of 2012.  Average
        oil production for the fourth quarter to-date is approximately
        19,050 bopd.
    --  Oil sales averaged 18,332 bopd for the third quarter of 2013,
        an increase of 2% compared to 18,008 bopd for the previous
        quarter and 17% compared to 15,715 bopd for the third quarter
        of 2012.  For the nine months ended September 30, 2013, oil
        sales were 17,655 bopd, an increase of 23% compared to 14,393
        bopd for the comparable 2012 period.
    --  Revenue was $147 million ($86.96/bbl) for the third quarter of
        2013, an increase of 11% compared to $132 million ($80.45/bbl)
        in the previous quarter and an increase of 27% from $115
        million ($79.58/bbl) in the third quarter of 2012.  Revenue for
        the third quarter of 2013 represented 79% of the Brent oil
        price of $110/bbl, compared to 79% of the Brent oil price of
        $102/bbl in the previous quarter and 73% of the Brent oil price
        of $110/bbl in the third quarter of 2012.
    --  For the third quarter of 2013, royalties to the Albanian
        Government and related entities were $25 million (17% of
        revenue) compared to $22 million (16% of revenue) in the
        previous quarter and $23 million (20% of revenue) for the same
        quarter of 2012.  Total royalties were $70 million (17% of
        revenue) and $60 million (19% of revenue) for the nine months
        ended September 30, 2013 and 2012, respectively.
    --  For the three and nine months periods ended September 30, 2013,
        operating, sales and transportation costs, originating from
        Albanian-based companies and their employees, were $39 million
        and $116 million, respectively, compared to $34 million and $98
        million for the comparable periods of 2012.
    --  The Company recorded net operating income (netback) of $83
        million ($49.05/bbl) in the third quarter of 2013, a 20%
        increase from $69 million ($42.19/bbl) in the previous quarter
        and 42% from $58 million ($40.23/bbl) in the third quarter of
        2012.  For the nine months ended September 30, 2013, net
        operating income was $225 million ($46.69/bbl), a 42% increase
        compared to $159 million ($40.29/bbl) in the comparable 2012
        period.
    --  For the third quarter of 2013, funds generated from operations
        were $71 million, a 15% increase compared to $62 million for
        the previous quarter and a 47% increase compared to $48 million
        for the same period of 2012.
    --  Capital expenditures were $66 million in the third quarter of
        2013.  The Company drilled 34 wells during the quarter,
        comprised of 32 horizontal production wells and two horizontal
        lateral re-drill wells in the main area of the Patos-Marinza
        field.  Capital expenditures were $52 million and $54 million
        for the previous quarter and the same period in 2012,
        respectively.
    --  The Company continues to maintain a strong financial position
        at September 30, 2013 with cash of $41 million and working
        capital of $122 million.  At September 30, 2013, the Company
        had drawn $106 million of its $230 million approved credit
        facilities.  Working capital for December 31, 2012 and
        September 30, 2012 was $89 million and $107 million,
        respectively.

Outlook

The average fourth quarter 2013 production to date from the Patos-Marinza 
oilfield in Albania continues steady growth at approximately 19,050 bopd, 3% 
higher than the third quarter average.

The Company is pleased with the performance of the horizontal drilling program 
with plans to drill an estimated thirty-four (34) horizontal wells and two (2) 
water disposal service wells in the fourth quarter. Delineation activities in 
the South Patos area and previously announced drilling and reactivations at 
Kuçova have been deferred to accommodate permitting and rig availability, 
however, the Company intends to proceed with these plans in early 2014.

Expansion plans of enhanced oil recovery (EOR), polymer flood and water flood 
patterns are moving forward in the fourth quarter. The Company continues to 
monitor and assess pilot performance with initial results expected in the 
first half of 2014.

In the third quarter, the Company increased spending to nearly $5 million on 
facilities and infrastructure projects, nearly double the infrastructure 
spending in the first half of the year with projections in the fourth quarter 
to spend a similar amount. Construction on a new satellite treatment 
facility in the north central region of the Patos-Marinza field and sludge 
treatment facility are in their final stages; both are scheduled to be 
operational in the first quarter of 2014. Other projects include existing 
well-pad retrofits, new well-pad cascade treating facilities, and installation 
of updated fluid measurement equipment.

"These are exciting times for Bankers. We began the year realizing our first 
quarter of free cash flow and we have now hit our third consecutive quarter, 
totalling $32 million free cash flow to date in 2013. We have built a solid 
platform of reliable, disciplined growth through our drilling program and 
expect to bring in a sixth rig by early 2014. I have been very pleased with 
the performance of the business, and our financial strength to grow within 
cash flow gives us lots of options to balance validating EOR with steady 
drilling growth." said David French, President and CEO of Bankers Petroleum.
                                    BANKERS PETROLEUM LTD.
                  CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
    (Unaudited, expressed in thousands of US dollars, except per share
                                amounts)
                              Three months ended     Nine months ended
                                 September 30          September 30
                                 2013       2012       2013       2012
                                                                       

Revenues                    $  146,665 $  115,054 $  411,065 $  316,309

Royalties                     (24,664)   (23,259)   (69,655)   (59,627)
                               122,001     91,795    341,410    256,682

Unrealized loss on             (2,208)    (1,085)    (3,588)    (4,050)
financial commodity
contracts
                               119,793     90,710    337,822    252,632
                                                                       

Operating expenses              22,000     20,229     65,445     56,699

Sales and transportation        17,276     13,407     50,933     41,101
expenses

General and                      4,434      3,999     14,902     11,617
administrative expenses

Depletion and                   25,583     15,644     73,218     43,388
depreciation 

Share-based payments             1,692      1,953      8,053      7,636
                                70,985     55,232    212,551    160,441
                                48,808     35,478    125,271     92,191
                                                                       

Net finance expense              3,311      3,732      8,867      8,449
                                                                       

Income before income tax        45,497     31,746    116,404     83,742

Deferred income tax           (25,990)   (19,472)   (69,696)   (52,450)
expense

Net income for the period       19,507     12,274     46,708     31,292
                                                                       

Other comprehensive                                                    
income (loss)

  Currency translation             263        820      (599)        821
  adjustment

Comprehensive income for    $   19,770 $   13,094 $   46,109 $   32,113
the period
                                                                       

Basic earnings per share    $    0.077 $    0.049 $    0.184 $    0.124

Diluted earnings per        $    0.076 $    0.048 $    0.183 $    0.123
share
                                                                       
                                   BANKERS PETROLEUM LTD.
                  CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
               (Unaudited, expressed in thousands of US dollars)
                                                  ASSETS
                                        September 30      December 31
                                            2013             2012

Current assets                                                       
    Cash and cash equivalents          $       33,550    $      33,740
    Restricted cash                             7,109            5,000
    Accounts receivable                        55,339           35,603
    Inventory                                  35,021           23,517
    Deposits and prepaid expenses              45,349           30,265
    Financial commodity contract                    -            1,550
                                             176,368          129,675

Non-current assets                                                   
    Long-term receivable                       10,261           11,150
    Financial commodity contracts               2,599                -
    Property, plant and equipment             775,766          681,399


Exploration and evaluation                  6,593            3,592 
assets 
                                  $      971,587    $     825,816 
                                          LIABILITIES 
Current liabilities                                                   
Accounts payable and accrued       $       52,676   $       38,787 
liabilities 
Current portion of long-term                1,719            2,089 
debt 


                                              54,395           40,876

Non-current liabilities                                              
    Long-term debt                             98,153           97,158
    Decommissioning obligation                 18,685           16,747
    Deferred tax liabilities                  257,699          188,003
                                             428,932          342,784
                                       SHAREHOLDERS' EQUITY
    Share capital                             338,041          334,764
    Contributed surplus                        79,672           69,435
    Currency translation reserve                6,763            7,362
    Retained earnings                         118,179           71,471
                                             542,655          483,032
                                      $      971,587    $     825,816
                                    BANKERS PETROLEUM LTD.
                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                (Unaudited, expressed in thousands of US dollars)
                            Three months ended       Nine months ended
                               September 30            September 30
                               2013       2012       2013        2012

Cash provided by (used                                                 
in):

Operating activities                                                   

  Net income for the      $   19,507 $   12,274 $    46,708 $    31,292
  period

  Depletion and               25,583     15,644      73,218      43,388
  depreciation

  Accretion of                   424      1,239       2,402       3,565
  long-term debt

  Accretion of                   259        211         750         608
  decommissioning
  obligation

  Unrealized foreign              48        328       (400)         448
  exchange (gain) loss

  Deferred income tax         25,990     19,472      69,696      52,450
  expense

  Share-based payments         1,692      1,953       8,053       7,636

  Unwinding of discount        (681)          -     (2,122)           -
  of long-term
  receivable

  Revaluation loss of            681          -         954           -
  long-term receivable

  Unrealized loss on           2,208      1,085       3,588       4,050
  financial commodity
  contracts

  Cash premiums paid         (4,637)    (3,898)     (4,637)     (3,898)
  for financial
  commodity contracts
                              71,074     48,308     198,210     139,539

  Change in long-term              -          -       2,057           -
  receivable

  Change in non-cash           5,722   (16,153)    (39,227)    (28,767)
  working capital
                              76,796     32,155     161,040     110,772

Investing activities                                                   

  Additions to              (63,879)   (53,506)   (162,914)   (166,957)
  property, plant and
  equipment

  Additions to               (2,320)       (20)     (3,001)     (1,902)
  exploration and
  evaluation assets

  Restricted cash                  -   (13,417)     (2,109)    (13,417)

  Change in non-cash           5,260        736       6,792     (3,373)
  working capital
                            (60,939)   (66,207)   (161,232)   (185,649)

Financing activities                                                   

  Issue of shares for            545          -       1,955      12,177
  cash

  Financing costs                  -          -     (1,994)       (750)

  Change in long-term        (9,191)        290          10      36,107
  debt
                             (8,646)        290        (29)      47,534

Foreign exchange gain             67        160          31          25
on cash and cash
equivalents

Increase (decrease) in         7,278   (33,602)       (190)    (27,318)
cash and cash
equivalents

Cash and cash                 26,272     55,297      33,740      49,013
equivalents, beginning
of period

Cash and cash             $   33,550 $   21,695 $    33,550 $    21,695
equivalents, end of
period
                                                                       

Interest paid             $       44 $      253 $     2,832 $     1,975

Interest received         $       26 $       43 $       145 $       321

Supporting Documents

The full Management Discussion and Analysis (MD&A), Financial Statements and 
updated November corporate presentation are available on 
www.bankerspetroleum.com. The MD&A and Financial Statements will also be 
available on www.sedar.com.

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 reactivations and well recompletions 
of the past will continue and success rates and production rates will be 
similar to those rates experienced for previous well recompletions and 
reactivations; 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.

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 
BNK.





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 
Email:investorrelations@bankerspetroleum.com 
Website:www.bankerspetroleum.com 
AIM NOMAD: Canaccord Genuity Limited Henry Fitzgerald-O'Connor +44 207 523 8000 
AIM BROKER: FirstEnergy Capital LLP Hugh Sanderson / David van Erp +44 0 207 
448 0200 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2013/08/c5599.html 
CO: Bankers Petroleum Ltd.
ST: Alberta
NI: OIL ERN  
-0- Nov/08/2013 13:00 GMT
 
 
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