27 Mar 2009 07:00
Attention Business Editors:
Bankers Petroleum files NI 51-101 Reserves disclosure
Proved and Probable 10% NPV exceeds $1 Billion
CALGARY, March 26 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") is pleased to announce that it has filed its 2008 Reserves disclosure information with the applicable securities regulatory authorities. The NI 51-101 disclosure documents consist of the F1 - Statement of Reserves Data and Other Oil and Gas Information, the F2 - Report of Independent Qualified Reserves Evaluator and the F3 - Report of Management and Directors on Oil and Gas Disclosure.
The evaluations of the Albanian properties were conducted by RPS Energy Canada Ltd. (Patos Marinza oilfield) and by DeGolyer and MacNaughton Canada Limited (Ku§ova oilfield). At December 31, 2008, the reserves have increased in all three categories (proved, probable and possible), along with the corresponding valuations, as shown below. On a Proved plus Probable basis, the 2008 finding and development costs for the Albanian properties represented $5.55 per barrel, inclusive of the 2008 expenditures and change in future capital.
Subsequent to the Company's February 13, 2009 News Release announcing the preliminary reserve amounts, the final assessment for the Patos Marinza oilfield increased slightly, primarily in the "Proved" and the "Proved plus Probable plus Possible" categories. The combined "Proved plus Probable" category has remained consistent at 180 million barrels having an after-tax 10%-discounted valuation of $1 billion.
In the Patos Marinza oilfield, the original-oil-in-place resource estimate increased 140% to 4.7 billion barrels. The reserves growth is primarily attributable to increased resource levels, improved well performance and the Company's 2008 vertical and horizontal development drilling successes. All of Patos Marinza's 2008 reserves estimates are from primary recovery methods.
The Ku§ova oilfield, acquired in 2008, has an original-oil-in-place resource estimate of 300 million barrels. This property is currently in the evaluation stage that will lead to creation of a development plan.
Gross Oil Reserves (Mbbls) - using Forecast Prices --------------------------- ---------------- 2008 2007 --------------------------- Patos Total Total Marinza Ku§ova Albania Albania(x) % ------------------------------------------------------- ---------------- Proved Developed Producing 21,314 - 21,314 13,986 52 Developed Non-Producing - - - - - Undeveloped 45,684 2,400 48,084 36,821 30 --------------------------- ---------------- Total Proved 66,998 2,400 69,398 50,807 36 Probable 102,910 7,683 110,593 96,248 15 --------------------------- ---------------- Total Proved Plus Probable 169,908 10,083 179,991 147,055 22 Possible 105,451 25,443 130,894 93,505 40 --------------------------- ---------------- Total Proved, Probable & Possible 275,359 35,526 310,885 240,560 29 ------------------------------------------------------ ----------------- Net Present Value at 10% - BEFORE Tax Using Forecast Prices ($millions) --------------------------- ---------------- 2008 2007 --------------------------- Patos Total Total Marinza Ku§ova Albania Albania(x) % ------------------------------------------------------- ---------------- Proved Developed Producing 168.0 - 168.0 132.4 27 Developed Non-Producing - - - - - Undeveloped 177.2 23.5 200.7 281.0 (29) --------------------------- ---------------- Total Proved 345.3 23.5 368.7 413.3 (11) Probable 1,026.8 157.3 1,184.1 979.9 21 --------------------------- ---------------- Total Proved Plus Probable 1,372.1 180.7 1,552.8 1,393.2 11 Possible 922.9 213.7 1,136.7 576.6 97 --------------------------- ---------------- Total Proved, Probable & Possible 2,295.0 394.5 2,689.5 1,969.9 37 ------------------------------------------------------- ---------------- Net Present Value at 10% - AFTER Tax Using Forecast Prices ($millions) --------------------------- ---------------- 2008 2007 --------------------------- Patos Total Total Marinza Ku§ova Albania Albania(x) % ------------------------------------------------------- ---------------- Proved Developed Producing 133.1 - 133.1 93.4 43 Developed Non-Producing - - - - - Undeveloped 130.3 16.4 146.7 137.2 7 --------------------------- ---------------- Total Proved 263.4 16.4 279.8 230.6 21 Probable 624.7 102.3 727.0 489.5 49 --------------------------- ---------------- Total Proved Plus Probable 888.1 118.7 1,006.8 720.1 40 Possible 559.5 156.9 716.4 289.1 148 --------------------------- ---------------- Total Proved, Probable & Possible 1,447.6 275.6 1,723.2 1,009.2 71 ------------------------------------------------------- ---------------- (x) All 2007 reserves pertain to Patos Marinza 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 both the Patos Marinza and the Ku§ova heavy oil fields. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.
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 Ku§ova oil fields 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; approval of the Addendum to the Plan of Development; 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 Abdel F. (Abby) Badwi, CEO 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 geologist (member of APEGGA) with over 39 years experience in domestic and international oil and gas operations.
For further information: Abby Badwi, President and Chief Executive Officer, (403) 513-2694; Doug Urch, VP, Finance and Chief Financial Officer, (403) 513-2691, Email: investorrelations(at)bankerspetroleum.com, Website: www.bankerspetroleum.com; AIM NOMAD: Canaccord Adams Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050 6500; AIM JOINT BROKERS: Canaccord Adams Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050 6500; Tristone Capital Ltd., Nick Morgan, +44 20 7355 5800 (BNK. BNK)
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