5 Jul 2012 13:00
Bankers Petroleum Operational Update for the Second Quarter 2012
June 2012 Average Monthly Production exceeds 14,800 bopd
CALGARY, July 5, 2012 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") is pleased to announce the following second quarter operational update.
Production and Oil Prices
The average second quarter 2012 production was 14,167 barrels of oil per day ("bopd"). Oil sales from the Patos-Marinza oilfield in Albania during the quarter averaged 14,169 bopd, 7% higher than the first quarter 2012 rate. The crude oil inventory at June 30th was 305,000 barrels, relatively consistent with 312,000 barrels at March 31st, 2012. Average production in June was 14,817 bopd.
The Patos-Marinza second quarter average oil price was approximately US$76.53 per barrel (representing 71% of the Brent oil price of US$108.19 per barrel), as compared with the first quarter average oil price of US$84.96 per barrel (72% of the Brent oil price of $118.49 per barrel).
For the six months ended June 30, 2012 oil sales were 13,724 bopd ($80.62 per barrel) an increase of 14% from 12,024 bopd ($72.56 per barrel) for the comparable 2011 period.
Drilling Update
Thirty-eight (38) wells have been drilled during the second quarter: Thirty-six (36) horizontal production wells and one (1) water disposal well and one (1) exploration well in Block "F". Twenty-nine (29) of the horizontal wells have been completed and placed on production with 25 wells averaging 120 bopd per well and four wells have high water cuts. The remaining seven (7) wells are currently undergoing completion operations and will be on production in the next several days. Base production from producing wells at the end of the first quarter declined by approximately 8%, another 300 bopd were shut-in at the end of June while drilling adjacent wells and as reported earlier another 200 bopd were shut-in due to liner re-entry issues during the quarter.
Thermal Program
The second steam cycle for well 5201 started on June 16th and 3000 cubic meters of cold water steam equivalent has been injected until the end of June. It is anticipated that steaming operations will continue until approximately mid-July. The well will be shut-in for a brief soak period then placed on production.
Infrastructure and Remediation
Work is continuing on the water control program with 42 wellbore suspensions completed in the quarter. Two wells with mechanical damage have been repaired and are now on production. Further remediation of liner re-entry continues.
Block "F"
The second exploration drilling location in Block "F" is progressing with reviews of environmental and construction permits. The timeline for drilling the well is late fourth quarter.
Updated Corporate Presentation
For additional information on this operational update, please see the July 2012 version of the Company's corporate presentation at www.bankerspetroleum.com.
Conference Call
The Management of Bankers will host a conference call on July 5, 2012 at 7:00am MDT to discuss this Operations Update. Following Management's presentation, there will be a question and answer session for analysts and investors.
To participate in the conference call, please contact the conference operator ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A live audio web cast of the conference call will also be available on Bankers website at www.bankerspetroleum.com or by entering the following URL into your web browser http://www.newswire.ca/en/webcast/detail/1003289/1083753. 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 available until July 19, 2012 by dialing 1-855-859-2056 or 1-416-849-0833 and entering access code 98497298.
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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 oilfields 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; 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 Suneel Gupta, Executive Vice President and Chief Operating Officer 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 engineer (member of APEGGA) with over 20 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 developing large oil and gas reserves. In Albania, Bankers operates and has the full rights to develop the Patos-Marinza heavy oilfield and has a 100% interest in the Ku§ova oilfield, and a 100% interest in Exploration Block "F". Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.
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 Mark Hodgson VP, Business Development (403) 513-2695 Email: investorrelations@bankerspetroleum.com Website: www.bankerspetroleum.com
AIM NOMAD:Canaccord Genuity LimitedHenry Fitzgerald-O'Connor+44 20 7523 8000AIM JOINT BROKERS:Canaccord Genuity LimitedRyan Gaffney/ Henry Fitzgerald-O'Connor+44 20 7523 8000Macquarie Capital AdvisorsPaul Connolly+44 20 3037 5639(BNK.)
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