Average Quarterly Production 17,800 bopd
CALGARY, July 4, 2013 /PRNewswire/ - Bankers Petroleum Ltd. (Bankers or the Company) (TSX: BNK) (AIM: BNK) is pleased to announce the Company's second quarter operational update.
Production, Sales and Oil Prices
Average production from the Patos-Marinza oilfield in Albania for the second quarter of 2013 was 17,800 barrels of oil per day (bopd), 5% higher than 16,919 bopd in the first quarter. Oil sales during the quarter averaged 18,008 bopd, 8% higher than the previous quarter average of 16,605 bopd. The crude oil inventory at June 30, 2013 was 330,000 barrels, 10,000 barrels less than 340,000 barrels at March 31, 2013.
The Patos-Marinza second quarter average oil price was approximately $80.36 per barrel (representing 78% of the Brent oil price of $102.44per barrel), as compared with the first quarter average oil price of $88.70 per barrel (representing 79% of the Brent oil price of $112.57per barrel).
For the six months ended June 30, 2013 oil sales were 17,310 bopd ($84.34 per barrel) an increase of 26% from 13,724 bopd ($80.57 per barrel) for the comparable 2012 period.
Thirty-nine (39) horizontal wells were drilled and rig released during the second quarter in the main area of the Patos-Marinza oilfield: thirty-five (35) horizontal production wells and four (4) horizontal lateral re-drills. Thirty-four (34) of these wells were completed and are on production, and the remaining five (5) will be placed on production in July.
The Company continues to focus on pad drilling within production fairways and ongoing legacy vertical well remediation, where necessary, ahead of the program. Pattern development drilling for secondary recovery techniques in the Marinza and Lower Driza zones has continued in the second quarter.
Secondary and Tertiary Recovery Program
The Company progressed with the first polymer flood pilot, converting a second well to injection. With continued satisfactory results, a further three wells are expected to be converted in the third quarter. Contingent on pilot results, commercial polymer preparation equipment has been sourced for delivery in 2014. A water flood pattern was also initiated with the first well converted and placed on injection early in the quarter and a second well converted and placed on injection in July.
The exploration well in Block "F" was spudded June 30th, 2013, and is expected to take 21 days to drill. This is the second exploration well in Block "F" and will complete Bankers two well obligation on the block.
Key 2013 infrastructure projects including flow lines and satellite treatment facilities, tank storage expansion, and sludge treatment facilities commenced construction at Patos-Marinza in the second quarter and will continue throughout the balance of the year.
Updated Corporate Presentation
For additional information on this operational update, please see the July 2013 version of the Company's corporate presentation at www.bankerspetroleum.com.
The Management of Bankers will host a conference call on July 5, 2013 at 7:00 am 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 http://www.bankerspetroleum.com or by entering the following URL into your web browser http://www.newswire.ca/en/webcast/detail/1136995/1240855
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, 2013 by dialing 1-855-859-2056 or 1-416-849-0833 and entering access code 99227901.
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 Kuçova 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 COO 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 (member of APEGA) 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, has a 100% interest in the Kuçova 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.
SOURCE Bankers Petroleum Ltd.