20 Mar 2008 12:00
Bankers Petroleum Reports 54% Increase in Reserves
Proved plus Probable Reserves of 147.1 Million Barrels for Albania &
9.5 Million Boe for Oklahoma, U.S.
CALGARY, March 20 /CNW/ - Bankers Petroleum Ltd. is pleased to provide the results of its December 31, 2007, independent reserves evaluation. Evaluations were conducted by RPS Energy Canada Ltd. (formerly APA Petroleum Engineering Inc.) for Bankers' Albanian assets and MHA Petroleum Consultants, Inc. for Bankers' U.S. assets, and were prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.
2007 Reserves Summary - Proved reserves (1P) increased 19% to 54.0 million barrels of oil equivalent (MMboe) from 45.3 MMboe in 2006, net of 2007 production of 1.7 MMboe (4,764 bopd) in 2007; - Proved plus Probable reserves (2P) increased 54% to 156.6 MMboe from 101.9 MMboe in 2006; and - Possible reserves of 96.7 MMboe were added to the evaluation for total 3P reserves of 253.3 MMboe.
The majority of the increase in reserves is attributable to the Patos Marinza oilfield in Albania that has 1,957 MMboe of recognized oil-in-place. The increase is attributable to the continuation of well reactivations and a new well development program associated with Bankers three-year plan, which will be announced shortly. No reserves are included for the recent Kucova field acquisition, announced in February 2008.
In Oklahoma, successful discoveries and development drilling in the Tishomingo field established first commercial natural gas production for the Company in September 2007. This resulted in 45.8 Bcfe of Proved plus Probable reserves at December 31, 2007. Additional drilling in this area will continue in 2008.
Summary of Oil and Gas Reserves Forecast Prices and Costs All amounts in the following table represent Bankers' working interestbefore royalties. ------------------------------------------------------ Albania United States ------------------------------------------- Heavy Oil Light & Natural Natural Medium Oil Gas Gas Total Liquids 2007 ------------------------------------------------------------------------- (Mbbl) (Mbbl) (MMcf) (Mbbl) (Mboe) ------------------------------------------------------------------------- Proved Developed Producing 14,000 40 4,717 236 15,062 Undeveloped 36,800 102 9,416 471 38,942 ------------------------------------------------------ Total Proved 50,800 142 14,132 707 54,004 Probable 96,200 210 28,278 1,414 102,537 ------------------------------------------------------ Total Proved Plus Probable 147,100 352 42,411 2,121 156,641 Possible 93,500 - 14,810 740 96,709 ------------------------------------------------------ Total Proved, Probable & Possible 240,600 352 57,220 2,861 253,349 ------------------------------------------------------ ----------------------------- ---------- Total 2006(x) % Change ----------------------------- ---------- (Mboe) ----------------------------- ---------- Proved Developed Producing 10,439 44% Undeveloped 34,855 12% ---------- ---------- Total Proved 45,294 19% Probable 56,558 81% ---------- ---------- Total Proved Plus Probable 101,852 54% Possible - - ---------- ---------- Total Proved, Probable & Possible 101,852 149% ---------- ---------- Note: May not add due to rounding Boe basis: 6,000 mcf to 1 boe (x) All 2006 reserves relate to Albania Net Present Value of Reserves Forecast Prices and Costs - Before Income Taxes ------------------ ------------------ ------------------ 2007 2006 % Change ------------------ ------------------ ------------------ Disc. at Disc. at Disc. at (US$ Millions) Undisc. 10% Undisc. 10% Undisc. 10% --------------------------------- ------------------ ------------------ Albania Proved Developed Producing 176.0 132.0 115.0 89.1 52% 48% Undeveloped 568.0 281.0 268.8 116.1 111% 142% ------------------ ------------------ ------------------ Total Proved 744.0 413.0 384.3 205.2 94% 101% Probable 2,469.0 980.0 1,162.3 396.4 112% 147% ------------------ ------------------ ------------------ Total Proved Plus Probable 3,213.0 1,393.0 1,546.6 601.6 108% 132% Possible 3,174.0 577.0 - - n/a n/a ------------------ ------------------ ------------------ Total Proved, Probable & Possible 6,387.0 1,970.0 1,546.6 601.6 313% 227% --------------------------------- ------------------ ------------------ United States Proved Developed Producing 53.1 13.4 - - n/a n/a Undeveloped 72.7 17.0 - - n/a n/a ------------------ ------------------ ------------------ Total Proved 125.8 30.4 - - n/a n/a Probable 235.9 60.6 - - n/a n/a ------------------ ------------------ ------------------ Total Proved Plus Probable 361.7 91.0 - - n/a n/a Possible 153.5 36.6 - - n/a n/a ------------------ ------------------ ------------------ Total Proved, Probable & Possible 515.2 127.6 - - n/a n/a --------------------------------- ------------------ ------------------ Total Proved Developed Producing 229.1 145.4 115.5 89.1 98% 63% Undeveloped 640.7 298.0 268.8 116.1 138% 157% ------------------ ------------------ ------------------ Total Proved 869.8 443.4 384.3 205.2 126% 116% Probable 2,704.9 1,040.6 1,162.3 396.4 133% 163% ------------------ ------------------ ------------------ Total Proved Plus Probable 3,574.7 1,484.0 1,546.6 601.6 131% 147% Possible 3,327.5 613.6 - - n/a n/a ------------------ ------------------ ------------------ Total Proved, Probable & Possible 6,902.2 2,097.6 1,546.6 601.6 346% 249% --------------------------------- ------------------ ------------------ Note: May not add due to rounding Net Present Value of Reserves Forecast Prices and Costs - After Income Taxes ------------------ ------------------ ------------------ 2007 2006 % Change ------------------ ------------------ ------------------ Disc. at Disc. at Disc. at (US$ Millions) Undisc. 10% Undisc. 10% Undisc. 10% --------------------------------- ------------------ ------------------ Albania Proved Developed Producing 115.0 93.0 77.9 64.5 48% 44% Undeveloped 278.0 137.0 128.1 53.3 117% 157% ------------------ ------------------ ------------------ Total Proved 392.0 231.0 206.0 117.9 90% 96% Probable 1,209.0 490.0 574.9 200.8 110% 144% ------------------ ------------------ ------------------ Total Proved Plus Probable 1,601.0 720.0 780.9 318.7 105% 126% Possible 1,576.0 289.0 - - n/a n/a ------------------ ------------------ ------------------ Total Proved, Probable & Possible 3,175.0 1,009.0 780.9 318.7 307% 217% --------------------------------- ------------------ ------------------ United States Proved Developed Producing 35.2 8.8 - - n/a n/a Undeveloped 48.2 11.2 - - n/a n/a ------------------ ------------------ ------------------ Total Proved 83.4 20.1 - - n/a n/a Probable 156.4 40.2 - - n/a n/a ------------------ ------------------ ------------------ Total Proved Plus Probable 239.8 60.2 - - n/a n/a Possible 101.8 24.3 - - n/a n/a ------------------ ------------------ ------------------ Total Proved, Probable & Possible 341.6 84.5 - - n/a n/a --------------------------------- ------------------ ------------------ Total Proved Developed Producing 150.2 101.8 77.9 64.5 93% 58% Undeveloped 326.2 148.2 128.1 53.3 155% 178% ------------------ ------------------ ------------------ Total Proved 475.4 251.1 206.0 117.9 131% 113% Probable 1,365.4 530.2 574.9 200.8 138% 164% ------------------ ------------------ ------------------ Total Proved Plus Probable 1,840.8 780.2 780.9 318.7 136% 145% Possible 1,675.8 313.3 - - n/a n/a ------------------ ------------------ ------------------ Total Proved, Probable & Possible 3,516.6 1,093.5 780.9 318.7 350% 243% --------------------------------- ------------------ ------------------ Note: May not add due to rounding Shareholder Information
The reserve data in this release is subject to and should be read in conjunction with the entire Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information. The Form 51-101F1, Form 51-101F2 - Report of Independent Qualified Reserves Evaluator and Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure are expected to be filed with Canadian securities regulators by March 31, 2008. Upon filing, this information can be accessed electronically on Bankers website at www.bankerspetroleum.com or on the SEDAR website at www.sedar.com.
Caution Regarding Forward-looking Information
Information in this news release respecting the reserves valuations, expected future production levels, future prices and netback, work plans, anticipated total oil recovery of the Patos Marinza oilfield and the Tishomingo gasfield in Oklahoma, U.S., 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.
Exploration for oil and natural gas is a speculative business that involves a high degree of risk. Few wells that are drilled are ultimately developed commercially, including shale natural gas wells. There is no assurance that expenditures made by the Company on its US properties will result in discovery of commercial qualities of natural gas. 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; delays associated with equipment procurement, equipment failure and the lack of suitably qualified personnel; the inherent uncertainty in 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 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 and volumes 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 other general risks inherent in oil and gas operations.
The Company's actual reserves and future production may be greater than or less than the estimates provided. The estimated future net revenue from the production of the Company's reserves does not represent the fair market value of Bankers' reserves.
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.
Review by Qualified Person
This 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 16 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 50% interest in the Kucova oilfield. It also holds an average 50% interest in the Tishomingo gasfield in Oklahoma and varied interests in three other areas in the Northern and Central regions of the United States, where it is currently pursuing the exploration, development and production of shale and tight sand gas plays. Bankers shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the ticker symbol BNK.
For further information: Abby Badwi, Chief Executive Officer, (403) 513-2694; Doug Urch, VP, Finance and Chief Financial Officer, (403) 513-2691; Susan J. Soprovich, VP, Investor Relations and Corporate Governance, (403) 513-2681; Email: investorrelations(at)bankerspetroleum.com, Website: www.bankerspetroleum.com; AIM NOMAD: Canaccord Adams Limited, Ryan Gaffney, Adam Janikowski, +44 20 7050 6500 (BNK)
BANKERS PETROLEUM LIMITED