14 May 2010 11:00
Bankers Petroleum Announces First Quarter Financial and Operational Results
Current production exceeds 10,000 bopd
CALGARY, May 14 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") is pleased to provide its first quarter 2010 Financial and Operational Results, together with its Management's Discussion and Analysis. The complete reporting package, consisting of Management's Discussion and Analysis along with Financial Statements and Notes, is posted on the Company's website www.bankerspetroleum.com and SEDAR www.sedar.com.
Abby Badwi, President and Chief Executive Officer: "We are very pleased with the results. 10,000 bopd is a significant milestone in the growth of the Company. With the addition of a second drilling rig in January, the Company doubled its capacity to drill horizontal wells and increase production significantly over the quarter as a result."
------------------------------------------------------------------------- Q1 - 2010 Q4 - 2009 Q1 - 2009 ------------------------------------------------------------------------- Production (bopd) 8,282 5,864 7,234 ------------------------------------------------------------------------- Brent Oil Price $/bbl 76.36 74.53 44.40 ------------------------------------------------------------------------- Patos-Marinza Oil Price $/bbl 47.16 45.10 24.73 ------------------------------------------------------------------------- Operating Costs $/bbl 10.63 11.18 10.44 ------------------------------------------------------------------------- Transportation $/bbl 5.90 5.56 2.70 ------------------------------------------------------------------------- Royalties $/bbl 9.65 9.35 6.61 ------------------------------------------------------------------------- Netback $/bbl 20.98 19.01 4.98 ------------------------------------------------------------------------- HIGHLIGHTS - Oil revenue increased 17% from $30.0 million during the previous quarter to $35.1 million in the first quarter of 2010 as a result of increased production and more favourable oil prices. Sales were $13.1 million for the first quarter of 2009. - Production at the end of March 31, 2010 was approximately 9,500 bopd, averaging 8,282 bopd over the first quarter, an increase of 41% compared to the first quarter 2009 average. Current production is in excess of 10,000 bopd. The Company's netback (revenue less royalties, operating, sales and transportation expenses) increased 10% to $20.98/bbl (44% of the average price) compared to $19.01/bbl (42% of the average price) in the fourth quarter of 2009. The netback for the first quarter of 2009 was $4.98/bbl (20% of the average price). The changes in netback were primarily due to more favourable average prices received from export sales and the fluctuation in commodity prices. - Funds generated from operations increased to $13.8 million in the first quarter of 2010 from $10.8 million in the fourth quarter of 2009. - Capital expenditures were $26.7 million during the quarter, an increase of 55% from the previous quarter spending of $17.2 million, compared to $2.8 million of expenditures in the first quarter of 2009. - Operating expenditures decreased to $10.63 per barrel during the quarter from $11.18 per barrel in the previous quarter, primarily due to increased production and efficiencies. - Liquidity as of March 31, 2010 saw the company in a position of financial strength, with working capital of $66.0 million and cash of $62.7 million. An additional $15 million was received in April and May 2010. The Company had also drawn $26.4 million from its $139.6 million in available credit facilities. Three months ended ------------------------------------ March 31 March 31 December 31 Results at a Glance (US$000s) 2010 2009 2009 ------------------------------------------------------------------------- Oil revenue 35,149 13,052 30,014 Net operating income 15,639 2,628 12,650 Net income (loss) 470 (2,492) 2,313 Funds generated from operations 13,819 1,265 10,788 Capital expenditures 26,700 2,835 17,259 March 31 March 31 December 31 2010 2009 2009 ------------------------------------ Cash and deposits 62,712 14,048 68,270 Working capital (deficiency) 65,987 (10,166) 75,414 Total assets 330,371 210,674 304,820 Bank loans 26,418 26,948 28,085 Shareholders' equity 225,548 123,622 213,960 OUTLOOK
Throughout the remainder of 2010, the Company will remain focused on achieving its priorities and implementing its capital programs in Albania:
- In January 2010, a second drilling rig commenced drilling in the Patos-Marinza oilfield and a third rig has now been contracted to start drilling in July 2010. The Company plans to drill a total of 52 horizontal and 5 vertical wells in 2010. Additionally, the Company plans to drill up to 3 vertical wells in Block F in 2010. - With the current 10,000 bopd production level and expected production from the remaining horizontal drilling program, Bankers projected 2010 year-end production target is 15,000 bopd. - Construction of an additional 80,000 barrels of storage capacity at the Vlore export terminal has commenced and is expected to be ready by year-end. To improve its "off-take" capacity, Bankers has initiated a pipeline project that will be implemented in two phases. Phase one, a 14 kilometre oil pipeline connecting the oilfield by rail to the export terminal, is underway and is expected to supplement current truck transport capacity of 15,000 bopd with an additional 9,500 bopd through rail transport by early 2011. Phase two, a 30 kilometre, 70,000 bopd pipeline connecting the oilfield to the export terminal, is planned for construction starting in 2011. - The full collection in April of the $11.8 million outstanding payments owing from the Albanian refineries operated by Albanian Refining & Marketing of Oil Sh.A ("ARMO") has resulted in Bankers resuming oil sales into the domestic market at an equivalent- to-export price. - The 2009 year-end independent assessment of the 1.2 billion barrels of Contingent and Prospective resources at Patos-Marinza validates the Company's plans for a thermal pilot proposed for the 2010 capital program. Success of such initiatives may lead to the conversion of significant volumes of these resources to recoverable reserves and the subsequent implementation of a commercial field expansion in 2012 and beyond. A waterflood program is also planned for the Ku§ova oilfield in 2010. - Bankers expects to fund its $152 million 2010 capital program using funds generated from operations, existing cash resources and a portion of its unutilized $110 million credit facilities. - The second quarter 2010 operations update is expected to be released on July 8. The Financial and Operating results for Q2/10 and Q3/10 will be released on August 13, 2010 and November 12, 2010, respectively. ANNUAL GENERAL MEETING
The Company's Annual General Meeting (AGM) will take place on May 26, 2010 at 3:00pm MDT (5:00pm EDT) at the Hotel Arts in Calgary, AB, Canada. The AGM will include a general corporate update and will be available via webcast at:
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal
sign)3042380
Bankers updated Corporate Presentation is now available at www.bankerspetroleum.com
BANKERS PETROLEUM LTD. CONSOLIDATED BALANCE SHEETS (Unaudited, expressed in thousands of US dollars) ------------------------------------------------------------------------- ASSETS March 31 December 31 2010 2009 -------------------------- Current assets Cash and cash equivalents $ 52,137 $ 59,495 Short-term deposits 9,075 7,275 Restricted cash 1,500 1,500 Accounts receivable 25,295 23,358 Inventory 2,767 2,031 Deposits and prepaid expenses 6,916 5,899 -------------------------- 97,690 99,558 Note receivable 2,749 2,749 Deferred financing costs 13,853 14,383 Property, plant and equipment 216,079 188,130 -------------------------- $ 330,371 $ 304,820 -------------------------- -------------------------- LIABILITIES Current liabilities Accounts payable and accrued liabilities $ 27,064 $ 19,505 Current portion of long-term debt 4,639 4,639 -------------------------- 31,703 24,144 Long-term debt 21,779 23,446 Asset retirement obligations 4,275 3,856 Future income tax liability 47,066 39,414 SHAREHOLDERS' EQUITY Share capital 211,541 206,058 Warrants 1,624 1,739 Contributed surplus 22,562 16,812 Deficit (10,179) (10,649) -------------------------- 225,548 213,960 -------------------------- $ 330,371 $ 304,820 -------------------------- -------------------------- BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF OPERATIONS, COMPREHENSIVE INCOME (LOSS) AND DEFICIT FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars, except per share amounts) ------------------------------------------------------------------------- 2010 2009 -------------------------- Revenue Oil revenue $ 35,149 $ 13,052 Royalties (7,190) (3,486) Interest 149 257 -------------------------- 28,108 9,823 -------------------------- Expenses Operating 7,925 5,512 Sales and transportation 4,395 1,426 General and administrative 1,926 1,204 Interest and bank charges 311 307 Interest on long-term debt 379 170 Foreign exchange (gain) loss (1,504) 253 Stock-based compensation 3,798 562 Amortization of deferred financing costs 683 - Depletion, depreciation and accretion 4,975 4,010 -------------------------- 22,888 13,444 -------------------------- Income (loss) before income tax 5,220 (3,621) Future income tax (expense) recovery (4,750) 1,129 -------------------------- Net income (loss) and comprehensive income (loss) for the period 470 (2,492) Deficit, beginning of period (10,649) (10,499) -------------------------- Deficit, end of period $ (10,179) $ (12,991) -------------------------- -------------------------- Basic earnings (loss) per share $ 0.002 $ (0.014) -------------------------- -------------------------- Diluted earnings (loss) per share $ 0.002 $ (0.014) -------------------------- -------------------------- BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars) ------------------------------------------------------------------------- 2010 2009 -------------------------- Cash provided by (used in): Operating activities Net income (loss) for the period $ 470 $ (2,492) Items not involving cash: Depletion, depreciation and accretion 4,975 4,010 Amortization of deferred financing costs 683 - Future income tax expense (recovery) 4,750 (1,129) Stock-based compensation 3,798 562 Unrealized foreign exchange (gain) loss (857) 314 -------------------------- 13,819 1,265 Change in non-cash working capital (1,153) (2,249) -------------------------- 12,666 (984) Investing activities Additions to property, plant and equipment (26,700) (2,835) Change in non-cash working capital 5,022 (791) -------------------------- (21,678) (3,626) -------------------------- Financing activities Issue of shares for cash 4,416 42 Short-term deposits (1,800) 1,000 Financing costs (152) - Decrease in long-term debt (1,667) (1,177) -------------------------- 797 (135) -------------------------- Foreign exchange gain (loss) on cash and cash equivalents 857 (314) -------------------------- Decrease in cash and cash equivalents (7,358) (5,059) Cash and cash equivalents, beginning of period 59,495 15,607 -------------------------- Cash and cash equivalents, end of period $ 52,137 $ 10,548 -------------------------- --------------------------
Bankers Petroleum Ltd is a Canadian oil company with assets and operations in Albania. The Company operates the Patos-Marinza oilfield, the largest onshore field in Europe. Led by a team of experienced heavy oil specialists, the Company strives to maximize shareholder value through continual growth in production and reserves from this known oil accumulation.
For further information: Abby Badwi, President and Chief Executive Officer, (403) 513-2694, Doug Urch, Executive VP, Finance and Chief Financial Officer, (403) 513-2691, Email: investorrelations(at)bankerspetroleum.com, Website: www.bankerspetroleum.com; AIM NOMAD: (Following a change of name, the Company's Nomad is now known as Canaccord Genuity Limited) Canaccord Genuity Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050 6500; AIM JOINT BROKERS: Canaccord Genuity Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050 6500; Macquarie Capital Advisors, Ben Colegrave, Paul Connolly, +44 20 3037 5639 (BNK.)
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