BNK.L Regulatory News (BNK)

Bankers Petroleum Announces 2013 Third Quarter Financial and OperationalResults Accumulated Free Cash Flow of $32 Million and Q4 Average Production to Date19,050 bopd CALGARY, Nov. 8, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the"Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2013 third quarterfinancial and operational results. During the quarter, Bankers achieved itsthird consecutive quarter of free cash flow and record production levels. Three months ended Nine months endedResults at a Glance September 30 September 30 ($000s, except as noted) 2013 2012 % change 2013 2012 % change Financial Oil revenue 146,665 115,054 27% 411,065 316,309 30% Net operating income 82,725 58,159 42% 225,032 158,882 42% Net income 19,507 12,274 59% 46,708 31,292 49% Per share - basic ($) 0.08 0.05 60% 0.18 0.12 50% - diluted ($) 0.08 0.05 60% 0.18 0.12 50% Funds generated from operations 71,074 48,308 47% 198,210 139,539 42% Per share - basic ($) 0.28 0.19 47% 0.78 0.55 42% Capital expenditures 66,199 53,526 24% 165,915 168,859 (2%) Operating Average sales (bopd) 18,332 15,715 17% 17,655 14,393 23% Average price ($/barrel) 86.96 79.58 9% 85.29 80.21 6% Netback ($/barrel) 49.05 40.23 22% 46.69 40.29 16% Average Brent oil price ($/ 109.50 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, 2013was 18,541 barrels of oil per day (bopd), 4% higher as compared to 17,886 bopdin the second quarter of 2013 and 19% higher than 15,616 bopd in the thirdquarter of 2012. Average oil production for the fourth quarter to-date isapproximately 19,050 bopd. · Oil sales averaged 18,332 bopd for the third quarter of 2013, anincrease 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 monthsended 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 previousquarter and an increase of 27% from $115 million ($79.58/bbl) in the thirdquarter of 2012. Revenue for the third quarter of 2013 represented 79% of theBrent oil price of $110/bbl, compared to 79% of the Brent oil price of $102/bblin the previous quarter and 73% of the Brent oil price of $110/bbl in the thirdquarter of 2012. · For the third quarter of 2013, royalties to the Albanian Governmentand 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) forthe 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, 2013and 2012, respectively. · For the three and nine months periods ended September 30, 2013,operating, sales and transportation costs, originating from Albanian-basedcompanies 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) inthe third quarter of 2012. For the nine months ended September 30, 2013, netoperating income was $225 million ($46.69/bbl), a 42% increase compared to $159million ($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 quarterand 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 horizontalproduction wells and two horizontal lateral re-drill wells in the main area ofthe Patos-Marinza field. Capital expenditures were $52 million and $54 millionfor the previous quarter and the same period in 2012, respectively. · The Company continues to maintain a strong financial position atSeptember 30, 2013 with cash of $41 million and working capital of $122million. At September 30, 2013, the Company had drawn $106 million of its $230million approved credit facilities. Working capital for December 31, 2012 andSeptember 30, 2012 was $89 million and $107 million, respectively. Outlook The average fourth quarter 2013 production to date from the Patos-Marinzaoilfield 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 programwith plans to drill an estimated thirty-four (34) horizontal wells and two (2)water disposal service wells in the fourth quarter. Delineation activities inthe South Patos area and previously announced drilling and reactivations atKuçova 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 floodpatterns are moving forward in the fourth quarter. The Company continues tomonitor and assess pilot performance with initial results expected in the firsthalf of 2014. In the third quarter, the Company increased spending to nearly $5 million onfacilities and infrastructure projects, nearly double the infrastructurespending in the first half of the year with projections in the fourth quarterto spend a similar amount. Construction on a new satellite treatment facilityin the north central region of the Patos-Marinza field and sludge treatmentfacility are in their final stages; both are scheduled to be operational in thefirst quarter of 2014. Other projects include existing well-pad retrofits, newwell-pad cascade treating facilities, and installation of updated fluidmeasurement equipment. "These are exciting times for Bankers. We began the year realizing our firstquarter 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 solidplatform of reliable, disciplined growth through our drilling program andexpect to bring in a sixth rig by early 2014. I have been very pleased withthe performance of the business, and our financial strength to grow within cashflow gives us lots of options to balance validating EOR with steady drillinggrowth." 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 financial commodity contracts (2,208) (1,085) (3,588) (4,050) 119,793 90,710 337,822 252,632 Operating expenses 22,000 20,229 65,445 56,699 Sales and transportation expenses 17,276 13,407 50,933 41,101 General and administrative expenses 4,434 3,999 14,902 11,617 Depletion and depreciation 25,583 15,644 73,218 43,388 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 expense (25,990) (19,472) (69,696) (52,450) Net income for the period 19,507 12,274 46,708 31,292 Other comprehensive income (loss) Currency translation adjustment 263 820 (599) 821 Comprehensive income for the period $ 19,770 $ 13,094 $ 46,109 $ 32,113 Basic earnings per share $ 0.077 $ 0.049 $ 0.184 $ 0.124 Diluted earnings per share $ 0.076 $ 0.048 $ 0.183 $ 0.123 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 assets 6,593 3,592 $ 971,587 $ 825,816 LIABILITIES Current liabilities Accounts payable and accrued $ 52,676 $ 38,787 liabilities Current portion of long-term debt 1,719 2,089 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 period $ 19,507 $ 12,274 $ 46,708 $ 31,292 Depletion and depreciation 25,583 15,644 73,218 43,388 Accretion of long-term debt 424 1,239 2,402 3,565 Accretion of decommissioning obligation 259 211 750 608 Unrealized foreign exchange (gain) loss 48 328 (400) 448 Deferred income tax expense 25,990 19,472 69,696 52,450 Share-based payments 1,692 1,953 8,053 7,636 Unwinding of discount of long-term receivable (681) - (2,122) - Revaluation loss of long-term receivable 681 - 954 - Unrealized loss on financial commodity contracts 2,208 1,085 3,588 4,050 Cash premiums paid for financial commodity (4,637) (3,898) (4,637) (3,898) contracts 71,074 48,308 198,210 139,539 Change in long-term receivable - - 2,057 - Change in non-cash working capital 5,722 (16,153) (39,227) (28,767) 76,796 32,155 161,040 110,772 Investing activities Additions to property, plant and equipment (63,879) (53,506) (162,914) (166,957) Additions to exploration and evaluation assets (2,320) (20) (3,001) (1,902) Restricted cash - (13,417) (2,109) (13,417) Change in non-cash working capital 5,260 736 6,792 (3,373) (60,939) (66,207) (161,232) (185,649) Financing activities Issue of shares for cash 545 - 1,955 12,177 Financing costs - - (1,994) (750) Change in long-term debt (9,191) 290 10 36,107 (8,646) 290 (29) 47,534 Foreign exchange gain on cash and cash equivalents 67 160 31 25 Increase (decrease) in cash and cash equivalents 7,278 (33,602) (190) (27,318) Cash and cash equivalents, beginning of period 26,272 55,297 33,740 49,013 Cash and cash equivalents, end of period $ 33,550 $ 21,695 $ 33,550 $ 21,695 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 andupdated November corporate presentation are available onwww.bankerspetroleum.com. The MD&A and Financial Statements will also beavailable on www.sedar.com. 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 Kuçova 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 reactivations and well recompletions of the pastwill continue and success rates and production rates will be similar to thoserates experienced for previous well recompletions and reactivations; continuedavailability of the necessary equipment, personnel and financial resources tosustain the Company's planned work program; continued political and economicstability in Albania; the existence of reserves as expected; the continuedrelease by Albpetrol of areas and wells pursuant to the Plan of Development andAddendum; the absence of unplanned disruptions; the ability of the Company tosuccessfully drill new wells and bring production to market; and general risksinherent in oil and gas operations. Forward-looking statements and information are based on assumptions thatfinancing, equipment and personnel will be available when required and onreasonable terms, none of which are assured and are subject to a number ofother risks and uncertainties described under "Risk Factors" in the Company'sAnnual Information Form and Management's Discussion and Analysis, which areavailable on SEDAR under the Company's profile at www.sedar.com. There can be no assurance that forward-looking statements will prove to beaccurate. Actual results and future events could differ materially from thoseanticipated in such statements. Readers should not place undue reliance onforward-looking information and forward looking statements. About Bankers Petroleum Ltd. Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration andproduction company focused on developing large oil and gas reserves. InAlbania, Bankers operates and has the full rights to develop the Patos-Marinzaheavy oilfield and has a 100% interest in the Kuçova oilfield, and a 100%interest in Exploration Block "F". Bankers' shares are traded on the TorontoStock Exchange and the AIM Market in London, England under the stock symbolBNK. SOURCE: Bankers Petroleum Ltd. For further information: David FrenchPresident and Chief Executive Officer(403) 513-6930 Doug UrchExecutive VP, Finance and Chief Financial Officer(403) 513-2691 Mark HodgsonVP, Business Development(403) 513-2695 Email: investorrelations@bankerspetroleum.comWebsite: www.bankerspetroleum.com AIM NOMAD:Canaccord Genuity LimitedHenry Fitzgerald-O'Connor+44 207 523 8000 AIM BROKER:FirstEnergy Capital LLPHugh Sanderson / David van Erp+44 0 207 448 0200

(BNK.)