BNK.L Regulatory News (BNK)

15 Nov 2005 07:00

Bankers Petroleum Limited15 November 2005 BANKERS PETROLEUM LTD. ANNOUNCES THIRD QUARTER RESULTS November 14, 2005 BNK: TSX BNK: AIM November 14, 2005, Calgary, Alberta - Bankers Petroleum Ltd. (TSX: BNK, AIM:BNK) today announced that for the third quarter 2005 the Company reportedrevenues of $4.22 million on sales, as compared to $1.71 million for the sameperiod in 2004. The increase in sales volume is due to the Company's ongoingre-development of the Patos-Marinza oilfield in Albania where oil production forthe third quarter of 2005 increased to 1,793 boepd, an increase of 17.4% and88.3% respectively from Q2 2005 and Q2 2004 periods. The Company continues its workover program at the Patos-Marinza oilfield whereapproximately 57 active wells are now producing an estimated 2,300 boepd. TheCompany does not expect to reach 3,500 boepd by year end as previously reported,however with ongoing optimization, workovers and an additional 10 wells approvedfor takeover, the Company believes production will continue to rise through tothe end of the year. On November 12, 2005, the Company commenced loading its first test export ofcrude oil from the Patos-Marinza oilfield for shipment of approximately 22,000bbls from the Vlore port of Albania to an Italian refinery. It is expected thatthe loading and sale will be completed by November 16, 2005. Crude oil salesprice is expected to range between US $27-$30 per bbl freight on board Albania.This represents an increase of between $4 to $7 per bbl over the existing $22.60per bbl price received from the Albanian Armo refinery under the Sales OilAgreement. A second test export is planned for December 2005 with the samerefinery. The Company expects to submit a final "Plan of Development" for thePatos-Marinza oilfield to Albpetrol Sh.A. in December 2005. Palo Duro Basin As at September 30, 2005, the Company has leased a total of approximately260,000 net acres in the Palo Duro Basin of west Texas and has incurred totallease acquisition costs of approximately US$13.67 million. A total of five initial drilling locations have been identified and the Companyis preparing to file permits with the Texas Railroad Commission to drill thefirst two test wells in Floyd county. A geological model of the Palo Duro Basinhad been undertaken to identify where in the basin to continue to lease.Additional data acquired is being incorporated into the model so that specificdrilling prospects can be optimized for the first quarter of 2006, as well as toidentify any additional leasing prospects and secondary hydrocarbon targets. The Company had previously targeted the spudding of the first test well in thePalo Duro Basin during October 2005. With rig re-commissioning by the contractorstill underway, the Company now expects to commence its first test well duringthe December 2005 to January 2006 drill period. The first three wells will bedrilled in separate areas within the deeper part of the Palo Duro Basin with theobjective of maximizing technical data. The most promising areas of the basinwill be selected for either follow-up vertical wells to gain further technicalknowledge or for possible horizontal wells. The foregoing information should be read together with the unauditedconsolidated financial statements of the Company for the period ended September30, 2005, including the notes thereto, and management's discussion and analysisfor the same period, all of which have been filed and are available for viewingunder the Company's profile at www.sedar.com. About Bankers Petroleum Ltd. Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration andproduction company with significant exploration and development opportunities inthe Palo Duro Basin of west Texas and a 100% working interest in thePatos-Marinza oilfield in Albania. The Company commenced operations in the oiland gas sector in July 2004 and has raised approximately US$50 million sincethat time. * BOE may be misleading, particularly if used in isolation. A BOE conversionratio of 6 mcf: 1 bbl is based on an energy equivalency conversion methodprimarily applicable at the burner tip and does not represent a valueequivalency at the wellhead. On Behalf of the Board of Directors, "Richard Wadsworth" Richard Wadsworth, President For further information, please contact 604-685-2162 The TSX Venture Exchange has not reviewed and does not accept responsibility forthe adequacy or accuracy of this news release. Certain information respecting the Company and the Company's propertiesconstitutes forward-looking information. Such forward-looking information,including but not limited to statements with respect to anticipated rates ofproduction, the estimated costs and timing of the Company's planned work programand reserves determination involve known and unknown risks, uncertainties andother factors which may cause the actual costs and results of the Company andits operations to be materially different from estimated costs or resultsexpressed or implied by such forward-looking statements. Such factors include,among others, risks related to international operations, general risksassociated with petroleum operations and risks associated with equipmentprocurement and equipment failure. Although the Company has attempted to takeinto account important factors that could cause actual costs or results todiffer materially, there may be other factors that cause costs of the Company'sprogram or results not to be as anticipated, estimated or intended. There can beno assurance that such statements will prove to be accurate as actual resultsand future events could differ materially from those anticipated in suchstatements. Accordingly, readers should not place undue reliance onforward-looking information. Paste the following links into your web browser to download the PDF documents related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/1292u_-2005-11-15.pdfhttp://www.rns-pdf.londonstockexchange.com/rns/1292u_2-2005-11-15.pdf This information is provided by RNS The company news service from the London Stock Exchange