13 May 2011 13:00
BANKERS PETROLEUM ANNOUNCES 2011 FIRST QUARTER FINANCIAL AND OPERATIONALRESULTS Record Quarter of Production and Financial Results
CALGARY, May 13 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (AIM: BNK) is pleased to provide its 2011 first quarter Financialand operational results. The complete reporting package, consisting ofManagement's Discussion and Analysis along with Financial Statements and Notes,is posted on the Company's website http://www.bankerspetroleum.com/ and SEDAR: http://www.sedar.com/.Results at a Glance (US$000, Three months ended Three months ended except as noted)(3) March 31 December 31 2011 2010 Change 2010 Change Oil revenue 72,736 35,149 107% 50,945 43% Net operating income 39,834 15,639 155% 25,465 56% Net income (loss) 11,219 (363) 32 x 4,630 142% Funds generated from operations(1) 30,259 13,814 119% 23,292 30% Capital expenditures 51,930 26,170 98% 37,367 39% Average production (bopd) 11,894 8,282 44% 10,424 14% Average price ($/barrel) 67.95 47.16 44% 53.12 28% Netback ($/barrel) 37.22 20.98 77% 26.55 40% March March December 31 31 31 2011 2010 Change 2010 Change Cash and deposits 82,854 67,712 22% 108,119 (23%) Adjusted working capital(2) 111,382 70,626 58% 134,934 (17%) Total assets 522,476 329,036 59% 465,598 12% Bank loans 20,416 26,418 (23%) 25,829 (21%) Shareholders' equity 371,355 226,882 64% 346,267 7%
(1) Includes $6.6 million cash premiums paid for
financial commodity contracts.
(2) Represents working capital net of current
portion of long-term debt.
(3) Effective January 1, 2011, and retroactive to
January 1, 2010, the Company adopted International Financial Reporting Standards (IFRS). Previously, the Company prepared its Financial Statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP). The transition has not resulted in any material variation from prior periods. Full details on the transition adjustments are contained in the Notes to the Consolidated Interim Financial Statements.
Highlights for the quarter ended March 31, 2011 are:
· Bankers achieved record production during the three months endedMarch 31, 2011. Production averaged 11,894 bopd, an increase of 44%, comparedto the same period in 2010. Production at the end of March 31, 2011 exceeded13,500 bopd.
· Revenue increased 107% to $72.7 million ($67.95/bbl) in the first quarter of 2011 from $35.1 million ($47.16/bbl) during the first quarter of 2010.
· Net operating income (netback) increased 155% to $39.8 million ($37.22/bbl) in the first quarter of 2011 from $15.6 million ($20.98/bbl) during the first quarter of 2010.
· Funds generated from operations increased 119% to $30.3 million inthe first quarter of 2011 from $13.8 million over the first quarter of 2010.Included in funds generated from operations are cash premiums paid of $6.6million for financial commodity contracts in February 2011.· Capital expenditures for the first quarter of 2011 were $51.9 millionand included drilling 16 wells, 29 reactivation and related infrastructure/expansion projects. During the comparable 2010 quarter, capital expenditureswere $26.2 million.· The Company continues to maintain a strong balance sheet adjustedworking capital of $111.4 million (including cash and cash equivalentstotalling $82.9 million) and bank loans of $20.4 million. At December 31, 2010the Company had adjusted working capital of $134.9 million and bank loans of$25.8 million. Adjusted working capital at March 31, 2010 was $70.6 million.ANNUAL GENERAL MEETINGThe Company's Annual General Meeting (AGM) will take place on May 24, 2011 at3:00pm MDT (5:00pm EDT) at the Petroleum Club in Calgary, AB, Canada.
For additional information, please see an updated version of the Company's corporate presentation on http://www.bankerspetroleum.com/.
BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited, expressed in thousands of US dollars) ASSETS March 31 December 31 January 1 2011 2010 2010 Current assets Cash and cash equivalents $ 81,354 $ 106,619 $ 59,495 Short-term investments - - 7,275 Restricted cash 1,500 1,500 1,500 Accounts receivable 48,063 29,233 23,358 Inventory 15,890 4,199 2,031 Deposits and prepaid expenses 15,265 16,624 5,899 162,072 158,175 99,558 Non-current assets Note receivable - - 2,749 Deferred financing costs 13,589 13,980 15,824 Financial commodity contracts 5,187 - - Property, plant and equipment 341,628 293,443 187,924 Total assets $ 522,476 $ 465,598 $ 306,055 LIABILITIES Current liabilities Accounts payable and accrued liabilities $ 50,690 $ 23,241 $ 19,505 Current portion of long-term debt 18,565 4,014 4,639 69,255 27,255 24,144 Non-current liabilities Long-term debt 1,851 21,815 23,446 Decommissioning obligation 6,871 6,622 4,796 Deferred tax liabilities 73,144 63,639 38,892 Total liabilities 151,121 119,331 91,278 SHAREHOLDERS' EQUITY Share capital 314,456 309,379 206,058 Warrants 1,597 1,597 1,739 Contributed surplus 35,113 28,135 16,443 Accumulated other comprehensive income 7,908 6,094 - Retained earnings (deficit) 12,281 1,062 (9,463) 371,355 346,267 214,777 $ 522,476 $ 465,598 $ 306,055 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars, except per share amounts) 2011 2010 Revenues $ 72,736 $ 35,149 Royalties (13,755) (7,190) 58,981 27,959 Operating expenses 11,597 7,925 Sales and transportation expenses 7,550 4,395 General and administrative expenses 2,858 2,456 Depletion and depreciation 8,265 4,384 Amortization of deferred financing costs 734 683 Share-based payments 4,645 3,704 Unrealized loss on financial commodity contracts 1,401 - 37,050 23,547 21,931 4,412 Finance income 307 727 Finance expense (1,514) (753) (1,207) (26) Income before income tax 20,724 4,386 Deferred income tax expense (9,505) (4,749) Net income (loss) for the period 11,219 (363) Other comprehensive income Currency translation adjustment 1,814 1,444 Comprehensive income for the period $ 13,033 $ 1,081 Basic earnings (loss) per share $ 0.046 $ (0.002) Diluted earnings (loss) per share $ 0.044 $ (0.002) BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited, expressed in thousands of US dollars, except number of common
shares) Accumulated Number of other Retained common Share Contributed comprehensive earnings shares capital Warrants surplus income (deficit) Total Balance at January 1, 2010 228,272,165 $ 206,058 1,739 $ 16,443 $ - $ (9,463) $ 214,777 Share-based payments - - - 6,608 - - 6,608 Options exercised 1,035,222 2,759 - (952) - - 1,807 Warrants exercised 1,033,334 2,724 (115) - - - 2,609 Net loss for the period - - - - - (363) (363) Currency translation adjustment - - - - 1,444 - 1,444 Balance at March 31, 2010 230,340,721 211,541 1,624 22,099 1,444 (9,826) 226,882 Issue of common shares 12,903,228 96,153 - -
- - 96,153 Share issue costs - (4,333) - - - - (4,333) Share-based payments - - - 7,876 - - 7,876 Options exercised 1,307,108 5,361 - (1,840) - - 3,521 Warrants exercised 243,933 657 (27) - - - 630 Net income for the period - - - - - 10,888 10,888 Currency translation adjustment - - - - 4,650 - 4,650 Balance at December 31, 2010 244,794,990 309,379 1,597 28,135 6,094 1,062 346,267 Share-based payments - - - 8,925 - - 8,925 Options exercised 1,963,444 5,077 - (1,947) - - 3,130 Net income for the period - - - - - 11,219 11,219 Currency translation adjustment - - - - 1,814 - 1,814 Balance at March 31, 2011 246,758,434 $ 314,456 1,597 $ 35,113 $ 7,908 $ 12,281 $ 371,355 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars) 2011 2010 Cash provided by (used in): Operating activities Net income (loss) for the period $ 11,219 $ (363) Depletion and depreciation 8,265 4,384 Amortization of deferred financing costs 734 683 Finance expenses (including accretion) 1,514 753 Interest paid (310) (165) Foreign exchange (gain) loss (126) 69 Deferred income tax expense 9,505 4,749 Share-based payments 4,645 3,704 Unrealized loss on financial commodity contracts 1,401 - Cash premiums paid for financial commodity contracts (6,588) - 30,259 13,814 Change in non-cash working capital (8,012) (1,678) 22,247 12,136 Investing activities Additions to property, plant and equipment (51,930) (26,170) Change in non-cash working capital 5,988 5,022 (45,942) (21,148) Financing activities Issue of shares for cash 3,130 4,416 Short-term deposits - (1,800) Financing costs (26) (152) Decrease in long-term debt (5,413) (1,667) (2,309) 797 Foreign exchange gain on cash and cash equivalents 739 857 Decrease in cash and cash equivalents (25,265) (7,358) Cash and cash equivalents, beginning of period 106,619 59,495 Cash and cash equivalents, end of period $ 81,354 $ 52,137
Caution Regarding Forward-looking Information
Information in this news release respecting matters such as the expected futureproduction levels from wells, future prices and netback, work plans,anticipated total oil recovery of the Patos Marinza and Ku§ova oilfieldsconstitute forward-looking information. Statements containing forward-lookinginformation express, as at the date of this news release, the Company's plans,estimates, forecasts, projections, expectations, or beliefs as to future eventsor results and are believed to be reasonable based on information currentlyavailable to the Company. Exploration for oil is a speculative business that involves a high degree ofrisk. The Company's expectations for its Albanian operations and plans aresubject to a number of risks in addition to those inherent in oil productionoperations, including: that Brent oil prices could fall resulting in reducedreturns and a change in the economics of the project; availability offinancing; delays associated with equipment procurement, equipment failure andthe lack of suitably qualified personnel; the inherent uncertainty in theestimation of reserves; exports from Albania being disrupted due to unplanneddisruptions; and changes in the political or economic environment.Production and netback forecasts are based on a number of assumptions includingthat the rate and cost of well takeovers, well reactivations and wellrecompletions of the past will continue and success rates will be similar tothose rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce atrates similar to the average rate of production achieved from wellsrecompletions/reactivations/development in the past; continued availability ofthe necessary equipment, personnel and financial resources to sustain theCompany's planned work program; continued political and economic stability inAlbania; approval of the Addendum to the Plan of Development; the existence ofreserves as expected; the continued release by Albpetrol of areas and wellspursuant to the Plan of Development and Addendum; the absence of unplanneddisruptions; the ability of the Company to successfully drill new wells andbring production to market; and general risks inherent in oil and gasoperations.Contingent resources disclosed herein represent those quantities of petroleumestimated, as of a given date, to be potentially recoverable from knownaccumulations, using established technology or technology under development,but which are not currently considered to be commercially recoverable due toone or more contingencies. Prospective resources disclosed herein representthose quantities of petroleum estimated, as of a given date, to be potentiallyrecoverable from undiscovered accumulations, by application of futuredevelopment projects.
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 http://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 Abdel F. (Abby) Badwi, President & CEO of BankersPetroleum Ltd., who is a "qualified person" under the rules and policies of AIMin his role with the Company and due to his training as a professionalpetroleum geologist (member of APEGGA) with over 40 years experience indomestic 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 Ku§ova 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.
For further information:Abby President and Chief Executive Officer (403) Badwi 513-2694 Doug Urch Executive VP, Finance and Chief Financial (403) Officer 513-2691 Mark VP, Business Development (403) Hodgson 513-2695
Email: invemailto:investorrelations@bankerspetroleum.com Website: www.bankerspetroleum.com
AIM NOMAD: Canaccord Genuity Limited
Ryan Gaffney/ Henry Fitzgerald-O'Connor
+44 20 7050 6500 AIM JOINT BROKERS: Canaccord Genuity Limited Macquarie Capital Advisors
Ryan Gaffney/ Henry Fitzgerald-O'Connor Ben Colegrave/Paul
Connolly +44 20 7050 6500 +44 20 3037 5639 (BNK.)
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