11 Jan 2007 07:00
Bankers Petroleum Meets 2006 Exit Production Target and Evaluates Further Opportunities to Add Value
Project Being Evaluated for Future Growth of Production and Reserves
CALGARY, Jan. 10 /CNW/ - Bankers Petroleum Ltd. is pleased to announce that its Albanian operations had a 2006 exit production of 4,406 bopd, which is in line with the Company's revised target for the year. This represents an increase of 91 percent over the 2005 production exit volume of 2,305 bopd.
"I'm pleased with the accomplishments of our Albanian team in reaching these production targets," said Richard Wadsworth, President. "This represents an annual growth of approximately 2,000 bopd, which is in line with our goal of reaching 10,000 to 15,000 bopd from primary recovery techniques. This illustrates the potential of the Patos Marinza field to continue to provide year-over-year production growth, adding value to our shareholders and Albania."
Bankers has renegotiated its domestic sales price for the heavy crude oil effective January 1, 2007. At current exchange rates, the Company's average domestic sales price increased to approximately US$27 per barrel. The revised price results in a new equivalent Brent ceiling price of US$39 per barrel from the previous US$37 per barrel, and is not expected to decrease unless Brent drops below US$39 per barrel or the Albanian currency depreciates against the U.S. dollar. The renegotiated sales price is denominated in Albanian currency.
In 2006, the Company's average domestic and export sales prices were approximately US$24 per barrel and US$30 per barrel, respectively.
In pursuing its long-term growth strategy, Bankers is focused on accessing the heavy oil upside from its Albanian assets, which includes the effective implementation of the Patos Marinza development plan as well as identifying enhanced recovery techniques to increase the field's reserves. In addition, the Company's strategy involves identifying and integrating other potential opportunities in Albania to increase overall value.
In September, Bankers initiated a scoping study for an enhanced oil recovery (EOR) thermal pilot project for the southern part of the Patos Marinza field to further improve total recovery to the Company. The team is progressing with the evaluation, modeling, economic analysis and engineering of an EOR project. The Company is currently in the process of finalizing the study and will then seek approval of the pilot project from the Board and appropriate Albanian parties. Further detail surrounding the project will be available upon required approvals.
Caution Regarding Forward-looking Information
Information in this news release respecting expected future production levels and anticipated total oil recovery at the Patos-Marinza heavy oilfield and potential opportunities constitutes 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.
Production and oil recovery targets are based on a number of assumptions including that the rate of well takeovers and well recompletions of the past will continue and success rates will be similar to those rates experienced for previous well recompletions/development; that further wells taken over and recompleted will produce at rates similar to the average rate of production achieved from wells recompleted/redeveloped 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; the existence of reserves as expected; the continued release by Albpetrol of areas and wells pursuant to the Plan of Development; the absence of unplanned disruptions; the ability of the Company to bring production to market; and general risks inherent in oil and gas operations.
Statements including forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements. Such factors include, among others, the risk that future well redevelopment will not have the same success rates or rates of recompletion as those experienced in the recent months, that Brent oil prices could fall resulting in reduced returns and a change in the economics of the project, general risks and uncertainties associated with exploration and petroleum operations including delays associated with equipment procurement, equipment failure, lack of suitably qualified personnel, the inherent uncertainty in estimation of reserves, exports from Albania being disrupted due to unplanned disruptions, changes in the political or economic environment, and other factors described under "Risk Factors" in the Company's Annual Information Form, NI 51-101F1 and in each of the Company's management's discussion and analysis filed with the Securities Commissions of the provinces of British Columbia, Alberta, and Ontario, which are available on SEDAR 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.
Review by Qualified Person
This operations update was reviewed by Richard Wadsworth, President 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 engineer with over 14 years experience in domestic 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 opportunities in unconventional petroleum assets. Bankers holds interests in four prospects in the Northern and Central regions of the United States, where it is currently pursuing the exploration of shale gas plays. It also operates in the Patos-Marinza oilfield in Albania pursuant to a license agreement, producing heavy oil. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the ticker symbol BNK.
For further information: Susan J. Soprovich, VP, Investor Relations and Corporate Governance, (403) 541-5313, Email: investorrelations(at)bankerspetroleum.com, Website: www.bankerspetroleum.com (BNK.)
BANKERS PETROLEUM LIMITED