BNK.L Regulatory News (BNK)

Bankers Petroleum Operational Update for the First Quarter 2015 Average Quarterly Production 19,767 bopd CALGARY, April 7, 2015 /CNW/ - Bankers Petroleum Ltd. (Bankers or the Company)(TSX: BNK, AIM: BNK) is pleased to announce the Company's first quarteroperational update. Production Average production from the Patos-Marinza and Kuçova oilfields in Albania forthe first quarter of 2015 (Q1) was 19,767 barrels of oil per day (bopd), 2.7%less than 20,324 bopd in the fourth quarter of 2014 (Q4). Bankers drilled two (2) wells in the Bubullima reservoir sands in the PatosMarinza field during Q1 with positive results. The 30 day average productionrate from the wells is approximately 200 bopd per well at 75% watercut and 16degrees API lighter quality oil. The Company plans to drill two to threeadditional Bubullima wells in 2015 utilizing recent 3D seismic data forprospect evaluation. As previously disclosed, several high-water cut wells were shut-in toaccommodate temporary reduced water handling capacity in Q4. Additionally, inearly February, Albania experienced severe flooding that caused Bankers toshut-in 81 wells in the northern and central area of the Patos-Marinza oilfielddue to limited surface access. Full water handling capacity resumed in earlyFebruary and by mid-month shut-in wells were brought back on line and havelargely returned to previous production rates after a period of clean-up andoptimization. On April 1st, the Company experienced a non-routine surface release of carbondioxide (CO2) gas during drilling operations and activated its EmergencyResponse Plan (ERP). Control of the well was established shortly thereafterand returned to normal well operations with no injuries reported. Bankers iscurrently coordinating with authorities regarding the release. According toDavid French, President and CEO "We are working closely with governmentagencies and local Prefect and Commune representatives to recover from thisdisruption to the lives of the villagers of Marinza. Some of our employeeslive and work in this same community. Efforts to further review the incidentare ongoing, although our highest priority is assisting the residents inrestoring their day-to-day activities." Sales and Oil Prices Oil sales during the quarter averaged 20,284 bopd, 1.6% lower than the previousquarter average of 20,619 bopd. Crude oil inventory at March 31, 2015, was270,000 barrels, down from 315,500 barrels at December 31, 2014. The Patos-Marinza first quarter average oil price was approximately $39.65 perbarrel (representing 73% of the average Brent oil price of $53.97 per barrel),as compared with the fourth quarter average oil price of $57.31 per barrel(representing 75% of the average Brent oil price of $76.27 per barrel). Exportsales during Q1 represented 47% of total sales, at an average export price of77% of Brent. Bankers realized $14.1 million (representing $7.76 per barrel) during Q1 inproceeds from corporate hedges. The Company has hedged 6,000 bopd at a Brentprice of $80 per barrel for 2015. Additionally, Bankers received $3.6 million(representing $1.96 per barrel) in legacy accounts receivable realization aspart of its domestic sales program. Drilling Update Twenty-one (21) wells were drilled during the first quarter in the main area ofthe Patos-Marinza oilfield: twenty (20) horizontal production wells and one (1)lateral re-drill. As of March 31st, seventeen (17) of these wells were onproduction, and the remaining four (4) waiting on completion. Bankers reducedits active rig count from three (3) to two (2) in February in response todecreased commodity prices. Enhanced Oil Recovery (EOR) Program The polymer and water flood patterns in the Patos-Marinza oilfield continue toperform to model expectations from the nineteen (19) polymer and four (4) waterflood patterns installed by year end 2014. Reservoir pressure and productionresponse are positive with good reservoir flood conformance. In Q1, Bankers converted four (4) additional wells to injectors. As of March31st, two (2) wells were on-line injecting with the remaining two (2) wellsexpected to begin injection by mid-April. The Company continues to be stronglyencouraged by the results to date and plans to move forward with 20 to 25additional conversions in 2015. Infrastructure Development Bankers infrastructure projects in the first quarter continued to focus onoperating cost structure improvements. Completion and commencement in Februaryof the water disposal pipeline from the central and satellite facilities to thesandstone disposal area significantly reduces in-field fluid trucking. Alsoduring Q1, construction continued in full swing on the northern gatheringsystem with completion projected in the third quarter of 2015. This willenable additional transportation cost savings and allow gathered gas to furtheroffset diesel energy usage. Updated Corporate Presentation For additional information on this Operational Update, please see the Company'sApril 2015 corporate presentation at http://www.bankerspetroleum.com/. Conference Call The Management of Bankers will host a conference call on April 7, 2015, at 6:30am MDT to discuss this Operational Update. Following Management's presentationthere will be a question and answer session for analysts and investors. To participate in the conference call, please contact the conference operatorten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A liveaudio web cast of the conference call will also be available on Bankers websiteat http://www.bankerspetroleum.com/ or by entering the following URL into yourweb browser, http://www.newswire.ca/en/webcast/detail/1509253/1682457 The web cast will be archived two hours after the presentation on the website,and posted on the website for 90 days. A replay of the call will be availableuntil April 22, 2014 by dialing 1-855-859-2056 or 1-416-849-0833 and enteringaccess code 17653223. ------------ Caution Regarding Forward-looking Information Information in this news release respecting matters such as the expected futureproduction levels from wells, future prices and netback, work plans,anticipated total oil recovery of the Patos-Marinza and Kuçova oilfieldsconstitute forward-looking information. Statements containing forward-lookinginformation express, as at the date of this news release, the Company's plans,estimates, forecasts, projections, expectations, or beliefs as to future eventsor results and are believed to be reasonable based on information currentlyavailable to the Company. Exploration for oil is a speculative business that involves a high degree ofrisk. The Company's expectations for its Albanian operations and plans aresubject to a number of risks in addition to those inherent in oil productionoperations, including: that Brent oil prices could fall resulting in reducedreturns and a change in the economics of the project; availability offinancing; delays associated with equipment procurement, equipment failure andthe lack of suitably qualified personnel; the inherent uncertainty in theestimation of reserves; exports from Albania being disrupted due to unplanneddisruptions; and changes in the political or economic environment. Production and netback forecasts are based on a number of assumptions includingthat the rate and cost of well takeovers, well reactivations and wellrecompletions of the past will continue and success rates will be similar tothose rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce atrates similar to the average rate of production achieved from wellsrecompletions/reactivations/development in the past; continued availability ofthe necessary equipment, personnel and financial resources to sustain theCompany's planned work program; continued political and economic stability inAlbania; the existence of reserves as expected; the continued release byAlbpetrol of areas and wells pursuant to the Plan of Development and Addendum;the absence of unplanned disruptions; the ability of the Company tosuccessfully drill new wells and bring production to market; and general risksinherent in oil and gas operations. Forward-looking statements and information are based on assumptions thatfinancing, equipment and personnel will be available when required and onreasonable terms, none of which are assured and are subject to a number ofother risks and uncertainties described under "Risk Factors" in the Company'sAnnual Information Form and Management's Discussion and Analysis, which areavailable on SEDAR under the Company's profile at http://www.sedar.com/. There can be no assurance that forward-looking statements will prove to beaccurate. Actual results and future events could differ materially from thoseanticipated in such statements. Readers should not place undue reliance onforward-looking information and forward looking statements. Review by Qualified Person This release was reviewed by Suneel Gupta, Executive Vice President and ChiefOperating Officer of Bankers Petroleum Ltd., who is a "qualified person" underthe rules and policies of AIM in his role with the Company and due to histraining as a professional petroleum engineer (member of APEGA) with over 20years' experience in domestic and international oil and gas operations. About Bankers Petroleum Ltd. Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration andproduction company focused on developing large oil and gas reserves. InAlbania, Bankers operates and has the full rights to develop the Patos-Marinzaheavy oilfield, has a 100% interest in the Kuçova oilfield, and a 100% interestin Exploration Block "F". Bankers' shares are traded on the Toronto StockExchange and the AIM Market in London, England under the stock symbol BNK. David French, President and Chief Executive Officer, (403) 513-6930; Doug Urch,Executive VP, Finance and Chief Financial Officer, (403) 513-2691; LauraBechtel, Investor Relations Analyst, (403) 513-3428; Email:investorrelations@bankerspetroleum.com; Website: www.bankerspetroleum.com; AIMNOMAD: Canaccord Genuity Limited, Henry Fitzgerald-O'Connor, +44 0 207 5238000; AIM BROKER: FirstEnergy Capital LLP, Hugh Sanderson / David van Erp, +440 207 448 0200