BNK.L Regulatory News (BNK)

5 Apr 2006 15:53

Bankers Petroleum Limited05 April 2006 BANKERS PETROLEUM LTD. ANNOUNCES TEXAS AND ALBANIA UPDATE BNK: TSX BNK: AIM April 5, 2006, Calgary, Alberta - Bankers Petroleum Ltd. (the "Company") ispleased to announce that the Company's second well in the Palo Duro basin, Jones#1 is drilling ahead at a depth of approximately 7,000 feet. The well isexpected to reach the target depth of 11,000 feet in the next two weeks afterwhich cores will be analyzed and a fracture stimulation program designed. The Misener #1 well is waiting for the completion of core analysis which istaking longer than expected due to the level of industry activity. This analysisshould be available in the next two weeks and once it has been received, acompletion and fracture stimulation program will be designed and implemented forthe Bend shale interval. The testing of the Bend shale is anticipated tocommence in May 2006, subject to equipment and service availability. During theintervening period the Company plans to gather data on deeper horizons in thewell prior to the completion of the Bend shale. The Company has also permitted Stansell #1, which will be its third well in thePalo Duro basin. It is anticipated that this well will be spudded immediatelyfollowing the drilling of the Jones #1 well. The Company continues to increase its production from the Patos Marinza field inAlbania. During the three months ended March 31, 2006, the Company averaged2,575 bopd compared to 2,184 bopd for Q4 2005 and 1,210 bopd for Q1 2005,increases of 18% and 128% respectively. Average production for March 2006 wasover 2,700 bopd with current production estimated at over 2,900 bopd. The Company continues to export oil to Italy pursuant to its oil exportcontract. During Q1 2006, the Company exported approximately 65,382 barrels atan average price of US$30.50 per barrel. The remainder of production continuesto be sold under the Albanian Refining and Marketing Oil, ARMO Sh.A contract inAlbania at a price of US$ 23.85 per bbl. As previously announced the exportcontract provides for the export of up to 2 cargoes per month of 22,000 bblseach at prices anticipated between US$28-US$31 per bbl, based on Brent prices ofUS$50-65 per bbl. The Company's netback increased throughout 2005 and this trend has continuedinto Q1 2006. During the months of January and February, the Company averaged anetback of approximately US$7.36 per barrel compared to US$6.44 per barrel forthe year ended December 31, 2005, an increase of 14%. Cashflow generated fromthe Albanian operations will be applied to the Patos Marinza 2006 Capitalprogram. On Behalf of the Board of Directors, "Richard Wadsworth" Richard Wadsworth, President For further information, please contact 604-685-2162 Certain information in this news release respecting the Company and theCompany's operations constitutes forward-looking information. Suchforward-looking information, including but not limited to statements withrespect to the estimated timing of the Company's planned work program involveknown and unknown risks, uncertainties and other factors which may cause theactual costs and results of the Company and its operations to be materiallydifferent from estimated costs or results expressed or implied by suchforward-looking statements. Such factors include, among others, general risksassociated with petroleum operations and risks associated with equipmentprocurement and equipment failure. The price received by the Company for crudeoil produced at Patos-Marinza is referenced to the price of Brent crude oil. Tothe extent that the Brent price increases or decreases, the Company's resultswill be similarly affected. Although the Company has attempted to take intoaccount important factors that could cause actual costs or results to differmaterially, there may be other factors that cause costs and timing of theCompany's program or results not to be as anticipated, estimated or intended.There can be no assurance that such statements will prove to be accurate asactual results and future events could differ materially from those anticipatedin such statements. Accordingly, readers should not place undue reliance onforward-looking information. This information is provided by RNS The company news service from the London Stock Exchange