Bankers Petroleum Operational Update for the First Quarter 2014
CALGARY, April 8, 2014
Average Quarterly Production 19,900 bopd
CALGARY, April 8, 2014 /PRNewswire/ - Bankers Petroleum Ltd. (Bankers or the
Company) (TSX: BNK, AIM: BNK) is pleased to announce the Company's first
quarter operational update.
Production, Sales and Oil Prices
Average production from the Patos-Marinza oilfield in Albania for the first
quarter of 2014 was 19,911 barrels of oil per day (bopd), 3.2% higher than
19,303 bopd in the fourth quarter of 2013.
Oil sales during the quarter averaged 18,435 bopd, 6.5% lower than the
previous quarter average of 19,710 bopd as a result of the final export cargo
of the quarter slipping into the second quarter due to weather delays. The
crude oil inventory at March 31, 2014 increased 43% to 444,000 barrels,
133,000 barrels higher than 311,000 barrels at December 31, 2013.
The Patos-Marinza first quarter average oil price was approximately $87.35 per
barrel (representing 81% of the Brent oil price of $108.22 per barrel), as
compared with the fourth quarter average oil price of $85.71 per barrel
(representing 78% of the Brent oil price of $109.27 per barrel).
Thirty-four (34) wells were drilled and rig released during the first quarter
in the main area of the Patos-Marinza oilfield: twenty-nine (29) horizontal
production wells, three (3) horizontal lateral re-drills and two (2) water
disposal wells. Twenty-three (23) of these wells were completed and are on
production, and the remaining nine (9) will be placed on production in April
pending drilling rig move off the pad, well completions, and facilities build.
The sixth (6) drilling rig spud its first well in the main area of the field
on March 18, 2014 and rig released in fifteen (15) days. The Company continues
to focus drilling on development through pad drilling of multiple zones within
the main area of the Patos-Marina oilfield. The additional rig provides
flexibility to move forward with southern delineation drilling and Kuçova
Secondary Recovery Program
The Company continues to expand its secondary recovery program with the
conversion of four (4) additional polymer injection wells in the Lower Driza
during the first quarter along with additional polymer treatment facilities to
support the expanded program. Bankers continues to monitor the early 2013
water flood and polymer flood patterns with initial production response
expected in the first half of 2014. Injection performance has been maintained
at target rates with no premature breakthrough of fluids to offset producers
which is indicative of good reservoir conformance. Reservoir pressure is
rising and is following current projection models.
To-date, Bankers has implemented three (3) water flood injectors in the Upper
Marinza zone (M0 reservoir sand) and nine (9) polymer flood injectors in three
(3) separate Lower Driza zones (D5, D4, and D3 reservoir sands) in the
southern part of the main Patos-Marinza oilfield. The Company plans to
convert an additional three (3) to six (6) wells to injection in the second
quarter of 2014.
In the first quarter of 2014, the Company completed maintenance turnaround on
the remaining two (2) trains of the Central Treating Facility. The third
satellite treatment facility is in the final stages of construction and will
be operational in the second quarter along with the sludge treatment facility
which is nearing completion as well.
The Company continues to maintain a diluent blend of approximately 8%, a
result of the improved treating process over the past year.
In the coming year, Bankers will remain focused on key infrastructure projects
aimed at reducing costs and optimizing operations, including field
electrification, flow-lines, sour treatment facilities, gas gathering and
additional cascade systems.
Government of Albania Fiscal Changes for 2014
Over the course of the first quarter, Management of Bankers has been in
regular discussions with the Government of Albanian with regard to the
previously announced fiscal changes and tax law related amendments. The
Company has received assurances from the Government that a financial offset
will be offered to mitigate the impact of fiscal changes which were approved
at the end of 2013. A formal agreement is expected to be finalized in the
second quarter of 2014.
"The Company is encouraged by the progress that has been made and expects to
reach a formal agreement with the Government of Albania with regard to an
offset mechanism for Excise Tax which was implemented on April 1, 2014 as well
as other changes included in the 2014 fiscal package. The Company continues to
carry out its 2014 capital program as originally conceived and foresees
minimal impact on our ongoing business with the government assurances. With
the addition of a sixth drilling rig, continued emphasis on margin expansion,
and further validation of our water and polymer flood programs, Bankers is
excited about our continued momentum into 2014," commented David French,
President and Chief Executive Officer of Bankers Petroleum.
Updated Corporate Presentation
For additional information on this Operational Update, please see the
Company's April 2014 corporate presentation at www.bankerspetroleum.com.
The Management of Bankers will host a conference call on April 8, 2014, at
6:30 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/1331909/1471999.
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 April 22, 2014 by dialing 1-855-859-2056 or 1-416-849-0833 and entering
access code 23433364.
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 Chief
Operating Officer 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 FrenchPresident and Chief Executive Officer, (403) 513-6930
Doug UrchExecutive VP, Finance and Chief Financial Officer, (403) 513-2691
Laura BechtelInvestor Relations Analyst, (403) 513-3428
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