|
16% increase in Oil Sales and 30% increase in Cash Flow
CALGARY, March 15, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2012 Financial Results.
In 2012, Bankers accomplished several key achievements including record production and cash flow. The Company also invested $222.7 million in capital expenditures during 2012.
| |
|
|
|
|
|
| Results at a Glance (US$000, except as noted) |
|
|
|
|
|
| |
Year ended December 31 |
|
| |
2012 |
|
2011 |
|
|
Change
(%) |
| Oil revenue |
432,138 |
|
339,918 |
|
|
27 |
| Net operating income |
218,246 |
|
169,653 |
|
|
29 |
| Net income |
34,413 |
|
35,996 |
|
|
(4) |
| |
Per share - basic ($) |
0.136 |
|
0.146 |
|
|
(7) |
| |
|
- diluted ($) |
0.136 |
|
0.141 |
|
|
(4) |
| Funds generated from operations |
192,589 |
|
147,940 |
|
|
30 |
| |
Per share - basic ($) |
0.763 |
|
0.559 |
|
|
36 |
| Capital expenditures |
222,663 |
|
242,754 |
|
|
(8) |
| |
|
|
|
|
|
|
| Average sales (bopd) |
14,808 |
|
12,784 |
|
|
16 |
| Average price ($/barrel) |
79.73 |
|
72.84 |
|
|
9 |
| Netback ($/barrel) |
40.27 |
|
36.36 |
|
|
11 |
| |
|
|
|
|
|
|
| |
December 31 |
|
| |
|
2012 |
|
|
|
2011 |
| Cash and deposits |
|
38,740 |
|
|
|
54,013 |
| Working capital |
|
88,799 |
|
|
|
80,282 |
| Total assets |
|
825,816 |
|
|
|
661,216 |
| Long-term debt |
|
97,158 |
|
|
|
46,692 |
| Shareholders' equity |
|
483,032 |
|
|
|
412,679 |
| |
|
|
|
|
2012 Highlights:
- Average oil production was 15,020 barrels of oil per day (bopd) 15% higher than 2011 average production of 13,051 bopd.
- Oil sales averaged 14,808 bopd, compared to 12,784 bopd in 2011, an increase of 16%, primarily as a result of the Company's ongoing horizontal drilling program along with continuation of well reactivations.
- Revenue increased by 27% to $432.1 million ($79.73/bbl) from $339.9 million ($72.84/bbl) in 2011. Field price realization represented 71% of the Brent oil price ($112/bbl) as compared to 65% of the Brent price ($111/bbl) in 2011.
- Royalties to the Albanian Government and related entities were $78.4 million, 23% higher than $63.9 million for 2011.
- Operating and sales and transportation costs, originating from Albanian-based companies and their employees, were $135.5 million, compared with $106.3 million for 2011.
- The Company recorded net operating income (netback) of $218.2 million ($40.27/bbl), an increase of 29% compared to $169.7 million ($36.36/bbl) in 2011.
- Funds generated from operations were $192.6 million, a 30% increase compared to $147.9 million for 2011. The fourth quarter of 2012 represents the first time that funds generated from operations of $53.0 million, nearly covered capital expenditures of $53.8 million.
- The Original Oil in Place (OOIP) resource assessment in Albania at year-end was 5.4 billion barrels compared to 8.0 billion barrels in 2011. Reserves on a proved basis were 139.4 million barrels compared to 172.4 million barrels in 2011. On a proved plus probable basis, reserves were 225.7 million barrels compared to 267.1 million barrels in 2011. The corresponding net present value (NPV) after tax (discounted at 10%) of the proved plus probable reserves was $1.9 billion at year-end compared to $2.0 billion in 2011.
- Capital expenditures were $222.7 million compared to $242.8 million in 2011. A total of 128 wells were drilled, including 112 horizontal production wells, seven lateral re-drills, four vertical core delineation wells, and four water disposal wells in the Patos-Marinza field, plus one exploration well in Block "F". In 2011, 84 total wells were drilled.
- Several Patos-Marinza crude oil sales agreements, representing the majority of the export volumes for 2013 are priced at an average of 80% of the Brent oil benchmark, an increase of 14% over the 2012 oil price of 71% of Brent oil.
- Data collection and analysis for secondary and enhanced recovery planning continued in 2012 with the objective to identify the most suitable reservoir layers and areas of the field to initiate water flood, polymer flood and enhanced oil recovery programs, starting in 2013.
- With data collected from the first thermal pilot and additional information including special core analysis of the expanded 2012 coring program, prospect areas are being selected and evaluated to design a second thermal pilot.
- Block "F" contains several seismically defined structural and amplitude anomalies prospective for oil and natural gas. The first exploration well was drilled in 2012 and the second exploration location has been selected and site construction is underway and this well is expected to spud in the second quarter of 2013.
- The central treatment facility (CTF) is being expanded with construction of third crude oil sales tank to increase storage capacity and improve operational flexibility in the Patos-Marinza field.
- Planning and construction for a new satellite facility in the north-central area of the field is also underway for scheduled completion in the third quarter of 2013. This facility, along with additional cascade treating facilities and in-field flow-lines, will improve crude oil treating performance in the field.
- Planning and application to gain preliminary approvals for the second phase of the crude oil sales pipeline, extending 35 kilometer from Fier to the export terminal at Vlore, is underway and will continue through 2013.
- Environmental legacy clean-up as part of the water control program continues to improve the condition of the oilfield and demonstrate improvement in oil rates and reduced water-cuts in wells and areas affected by water influx issues. Over 220 existing wells were isolated in 2012.
- The Company has initiated design and construction of a commercial scale sludge treatment operation to help reclaim oil from the sludge on old leases and from ecological pits in the production area as part of on-going lease clean-up activities.
- The Company continues to maintain a strong financial position at December 31, 2012 with cash of $38.7 million and working capital of $88.8 million. Cash and working capital for December 31, 2011 was $54.0 million and $80.3 million, respectively.
- The Company is in the final approval stages regarding its credit facility expansion with the International Finance Corporation (IFC) and European Bank for Reconstruction and Development (EBRD), its existing reserve-based lenders. It is expected that the new credit facility will envelope the existing $110 million facility, resulting in a new facility having similar terms as the original. The original 2009 facility had a six-year term with repayments scheduled in the latter three years.
- In August 2012, the Company entered into a financial commodity contract representing 4,000 bopd at a floor price of $80/bbl Brent for 2013.
- The Company continues to challenge assessments from the Albanian Government Tax Directorate through the Albanian Courts. In addition to the success in setting aside a recently introduced separate assessment of excise tax on the Company's importation and use of diluent, over the past few months, the Courts have ruled in favor of Bankers for all other cases heard, including the carbon and circulation taxes on diluent imports, which resulted in recent assessments to the Company totalling over $17 million. The Company is now preparing to continue its defense from various levels of appeals.
Operational Update
First quarter 2013 year-to-date average production is 16,850 bopd. Bankers intends to issue the first quarter 2013 operational update and host conference call on Friday, April 5, 2013.
Outlook
The Company's capital program in 2013 will be $247 million, fully funded from projected cash flow based on an average $102.50 Brent oil price. The work program and budget will include the following:
- Drilling of approximately 120 horizontal and vertical wells with 70-80% of the wells focused on increasing production and 20-30% focused on data collection for improved secondary and tertiary recovery techniques in the Patos-Marinza oilfield.
- Continuing the water control and environmental clean-up program with over 200 legacy vertical well isolations to improve new well performance and expanding water disposal capacity with additional wells.
- Initiating water flood and polymer flood operations and drilling additional core wells for assessing future thermal development plans.
- Progressing with social and environmental impact assessments and preliminary approvals for construction of the 35 kilometer second phase of the 70,000 bopd crude oil sales pipeline from the Fier Hub to the Vlore export terminal.
- Drilling new wells and expanding water flood activities at the Kuçova oilfield.
- Drilling an exploration well on Block "F" and identification of further prospects.
- Continuing with the environmental stewardship and social initiatives in our area of operations.
Supporting Documents
The full Management Discussion and Analysis (MD&A), Financial Statements and updated March corporate presentation are available on www.bankerspetroleum.com. The MD&A and Financial Statements will also be available on www.sedar.com.
| |
BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31
(Expressed in thousands of US dollars, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
2011 |
|
|
|
|
|
|
|
| Revenues |
|
$ |
432,138 |
|
$ |
339,918 |
| Royalties |
|
|
(78,361) |
|
|
(63,941) |
|
|
|
353,777 |
|
|
275,977 |
| Realized loss on financial commodity contracts |
|
|
(6,588) |
|
|
- |
| Unrealized gain (loss) on financial commodity contracts |
|
|
556 |
|
|
(2,904) |
| |
|
|
347,745 |
|
|
273,073 |
|
|
|
|
|
|
|
| Operating expenses |
|
|
77,953 |
|
|
60,864 |
| Sales and transportation expenses |
|
|
57,578 |
|
|
45,460 |
| General and administrative expenses |
|
|
16,050 |
|
|
13,773 |
| Depletion and depreciation |
|
|
65,937 |
|
|
40,367 |
| Share-based payments |
|
|
11,205 |
|
|
11,041 |
|
|
|
228,723 |
|
|
171,505 |
| |
|
|
119,022 |
|
|
101,568 |
|
|
|
|
|
|
|
| Net finance expense |
|
|
19,594 |
|
|
6,223 |
|
|
|
|
|
|
|
Income before income tax |
|
|
99,428 |
|
|
95,345 |
| Deferred income tax expense |
|
|
(65,015) |
|
|
(59,349) |
| Net income for the year |
|
|
34,413 |
|
|
35,996 |
|
|
|
|
|
|
|
| Other comprehensive income |
|
|
|
|
|
|
| |
Currency translation adjustment |
|
|
953 |
|
|
315 |
Comprehensive income for the year |
|
$ |
35,366 |
|
$ |
36,311 |
|
|
|
|
|
|
|
| Basic earnings per share |
|
$ |
0.136 |
|
|
0.146 |
| |
|
|
|
|
|
|
| Diluted earnings per share |
|
$ |
0.136 |
|
$ |
0.141 |
|
|
|
|
|
|
|
| |
| BANKERS PETROLEUM LTD. |
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
| AS AT DECEMBER 31 |
| (Expressed in thousands of US dollars) |
| |
| ASSETS |
|
|
2012 |
|
|
2011 |
| Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
33,740 |
|
$ |
49,013 |
|
Restricted cash |
|
5,000 |
|
|
5,000 |
| |
Accounts receivable |
|
35,603 |
|
|
56,006 |
| |
Inventory |
|
23,517 |
|
|
14,412 |
| |
Deposits and prepaid expenses |
|
30,265 |
|
|
17,463 |
| |
Financial commodity contracts |
|
1,550 |
|
|
3,684 |
| |
|
129,675 |
|
|
145,578 |
| Non-current assets |
|
|
|
|
|
|
Long-term receivable |
|
11,150 |
|
|
- |
|
Property, plant and equipment |
|
681,399 |
|
|
514,184 |
|
Exploration and evaluation assets |
|
3,592 |
|
|
1,454 |
| |
$ |
825,816 |
|
$ |
661,216 |
| |
|
| LIABILITIES |
|
| Current liabilities |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
$ |
38,787 |
|
$ |
52,109 |
|
Current portion of long-term debt |
|
2,089 |
|
|
13,187 |
|
|
40,876 |
|
|
65,296 |
| Non-current liabilities |
|
|
|
|
|
|
|
Long-term debt |
|
97,158 |
|
|
46,692 |
|
Decommissioning obligation |
|
16,747 |
|
|
13,561 |
|
Deferred tax liabilities |
|
188,003 |
|
|
122,988 |
|
|
|
342,784 |
|
|
248,537 |
| |
|
| SHAREHOLDERS' EQUITY |
|
| |
Share capital |
|
334,764 |
|
|
318,021 |
|
Warrants |
|
- |
|
|
1,540 |
|
Contributed surplus |
|
69,435 |
|
|
49,651 |
|
Currency translation reserve |
|
7,362 |
|
|
6,409 |
|
Retained earnings |
|
71,471 |
|
|
37,058 |
| |
|
483,032 |
|
|
412,679 |
|
$ |
825,816 |
|
$ |
661,216 |
| |
|
|
|
|
|
| |
| BANKERS PETROLEUM LTD. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| FOR THE YEARS ENDED DECEMBER 31 |
| (Expressed in thousands of US dollars) |
| |
|
|
|
|
| |
|
|
|
2012 |
|
|
2011 |
| Cash provided by (used in): |
|
|
|
|
|
|
|
| Operating activities |
|
|
|
|
|
|
|
| |
Net income for the year |
|
|
$ |
34,413 |
|
$ |
35,996 |
| |
Depletion and depreciation |
|
|
|
65,937 |
|
|
40,367 |
| |
Amortization of deferred financing costs |
|
|
|
- |
|
|
734 |
| |
Accretion of long-term debt |
|
|
|
4,791 |
|
|
2,555 |
| |
Accretion of decommissioning obligation |
|
|
|
829 |
|
|
460 |
| |
Unrealized foreign exchange loss |
|
|
|
636 |
|
|
1,122 |
| |
Deferred income tax expense |
|
|
|
65,015 |
|
|
59,349 |
| |
Share-based payments |
|
|
|
11,205 |
|
|
11,041 |
| |
Discount of long-term receivable |
|
|
|
7,629 |
|
|
- |
| |
Realized loss on financial commodity contracts |
|
|
|
6,588 |
|
|
- |
| |
Unrealized (gain) loss on financial commodity contracts |
|
|
|
(556) |
|
|
2,904 |
| |
Cash premiums paid for financial commodity contracts |
|
|
|
(3,898) |
|
|
(6,588) |
| |
|
|
|
192,589 |
|
|
147,940 |
| |
Change in long-term receivable |
|
|
|
(18,779) |
|
|
- |
| |
Change in non-cash working capital |
|
|
|
(12,064) |
|
|
(15,743) |
| |
|
|
|
161,746 |
|
|
132,197 |
| Investing activities |
|
|
|
|
|
|
|
| |
Additions to property, plant and equipment |
|
|
|
(220,525) |
|
|
(241,300) |
| |
Additions to exploration and evaluation assets |
|
|
|
(2,138) |
|
|
(1,454) |
| |
Restricted cash |
|
|
|
- |
|
|
(3,500) |
| |
Change in non-cash working capital |
|
|
|
(2,762) |
|
|
6,786 |
| |
|
|
|
(225,425) |
|
|
(239,468) |
| Financing activities |
|
|
|
|
|
|
|
| |
Issue of shares for cash |
|
|
|
13,555 |
|
|
5,783 |
| |
Financing costs |
|
|
|
(750) |
|
|
(30) |
| |
Increase in long-term debt |
|
|
|
35,537 |
|
|
44,543 |
| |
Share issue costs |
|
|
|
- |
|
|
(167) |
| |
|
|
|
48,342 |
|
|
50,129 |
| Foreign exchange gain (loss) on cash and cash equivalents |
|
|
|
64 |
|
|
(464) |
| Decrease in cash and cash equivalents |
|
|
|
(15,273) |
|
|
(57,606) |
| Cash and cash equivalents, beginning of year |
|
|
|
49,013 |
|
|
106,619 |
| Cash and cash equivalents, end of year |
|
|
$ |
33,740 |
|
$ |
49,013 |
| |
|
|
|
|
|
|
|
| Interest paid |
|
|
$ |
4,788 |
|
$ |
2,362 |
| Interest received |
|
|
$ |
438 |
|
$ |
574 |
| |
|
|
|
|
|
|
|
| |
| BANKERS PETROLEUM LTD. |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| (Expressed in thousands of US dollars, except number of common shares) |
| |
|
Number of
common
shares |
|
Share
capital |
|
Warrants |
|
Contributed
surplus |
|
Currency
translation
reserve |
|
Retained
earnings |
|
Total |
| Balance at December 31, 2010 |
|
244,794,990 |
|
$ |
309,379 |
|
$ |
1,597 |
|
$ |
28,135 |
|
$ |
6,094 |
|
$ |
1,062 |
|
$ |
346,267 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share-based payments |
|
- |
|
|
- |
|
|
- |
|
|
24,485 |
|
|
- |
|
|
- |
|
|
24,485 |
| Options exercised |
|
2,728,446 |
|
|
8,348 |
|
|
- |
|
|
(2,969) |
|
|
- |
|
|
- |
|
|
5,379 |
| Warrants exercised |
|
174,333 |
|
|
461 |
|
|
(57) |
|
|
- |
|
|
- |
|
|
- |
|
|
404 |
| Share issue costs |
|
- |
|
|
(167) |
|
|
- |
|
|
- |
|
- |
|
|
|
- |
|
|
(167) |
| Net income for the year |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
|
|
35,996 |
|
|
35,996 |
| Currency translation adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
315 |
|
|
- |
|
|
315 |
| Balance at December 31, 2011 |
|
247,697,769 |
|
$ |
318,021 |
|
$ |
1,540 |
|
$ |
49,651 |
|
$ |
6,409 |
|
$ |
37,058 |
|
$ |
412,679 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share-based payments |
|
- |
|
|
- |
|
|
- |
|
|
21,432 |
|
|
- |
|
|
- |
|
|
21,432 |
| Options exercised |
|
1,457,890 |
|
|
4,147 |
|
|
- |
|
|
(1,655) |
|
|
- |
|
|
- |
|
|
2,492 |
| Warrants exercised |
|
4,672,991 |
|
|
12,596 |
|
|
(1,533) |
|
|
- |
|
|
- |
|
|
- |
|
|
11,063 |
| Warrants expired |
|
- |
|
|
- |
|
|
(7) |
|
|
7 |
|
|
- |
|
|
- |
|
|
- |
| Net income for the year |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
34,413 |
|
|
34,413 |
| Currency translation adjustment |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
953 |
|
|
- |
|
|
953 |
| Balance at December 31, 2012 |
|
253,828,650 |
|
$ |
334,764 |
|
$ |
- |
|
$ |
69,435 |
|
$ |
7,362 |
|
$ |
71,471 |
|
$ |
483,032
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 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. 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 Limited
Henry Fitzgerald-O'Connor
+44 0 207 523 8000
AIM BROKER:
FirstEnergy Capital LLP
Hugh Sanderson / David van Erp
+44 0 207 448 0200
| |
