|
Bankers Petroleum Announces 2013 Third Quarter Financial and Operational Results
Accumulated Free Cash Flow of $32 Million and Q4 Average Production to Date 19,050 bopd
CALGARY, Nov. 8, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2013 third quarter financial and operational results. During the quarter, Bankers achieved its third consecutive quarter of free cash flow and record production levels.
| Results at a Glance |
Three months ended
September 30 |
Nine months ended
September 30 |
| ($000s, except as noted) |
2013 |
2012 |
% change |
2013 |
2012 |
% change |
| Financial |
|
|
|
|
|
|
| |
Oil revenue |
146,665 |
115,054 |
27% |
411,065 |
316,309 |
30% |
| |
Net operating income |
82,725 |
58,159 |
42% |
225,032 |
158,882 |
42% |
| |
Net income |
19,507 |
12,274 |
59% |
46,708 |
31,292 |
49% |
| |
|
Per share |
- basic ($) |
0.08 |
0.05 |
60% |
0.18 |
0.12 |
50% |
| |
|
|
- diluted ($) |
0.08 |
0.05 |
60% |
0.18 |
0.12 |
50% |
| |
Funds generated from operations |
71,074 |
48,308 |
47% |
198,210 |
139,539 |
42% |
| |
|
Per share |
- basic ($) |
0.28 |
0.19 |
47% |
0.78 |
0.55 |
42% |
| |
Capital expenditures |
66,199 |
53,526 |
24% |
165,915 |
168,859 |
(2%) |
| Operating |
|
|
|
|
|
|
| |
Average sales (bopd) |
18,332 |
15,715 |
17% |
17,655 |
14,393 |
23% |
| |
Average price ($/barrel) |
86.96 |
79.58 |
9% |
85.29 |
80.21 |
6% |
| |
Netback ($/barrel) |
49.05 |
40.23 |
22% |
46.69 |
40.29 |
16% |
| |
Average Brent oil price ($/barrel) |
110.29 |
109.50 |
1% |
108.46 |
112.21 |
(3%) |
| |
|
|
|
|
|
| |
|
|
|
September 30, 2013 |
December 31, 2012 |
% change |
| Cash and deposits |
|
|
|
40,659 |
38,740 |
5% |
| Working capital |
|
|
|
121,973 |
88,799 |
37% |
| Total assets |
|
|
|
971,587 |
825,816 |
18% |
| Long-term debt |
|
|
|
98,153 |
97,158 |
1% |
| Shareholders' equity |
|
|
|
542,655 |
483,032 |
12% |
Highlights for the quarter and nine months ended September 30, 2013 are:
- Average oil production for the three months ended September 30, 2013 was 18,541 barrels of oil per day (bopd), 4% higher as compared to 17,886 bopd in the second quarter of 2013 and 19% higher than 15,616 bopd in the third quarter of 2012. Average oil production for the fourth quarter to-date is approximately 19,050 bopd.
- Oil sales averaged 18,332 bopd for the third quarter of 2013, an increase of 2% compared to 18,008 bopd for the previous quarter and 17% compared to 15,715 bopd for the third quarter of 2012. For the nine months ended September 30, 2013, oil sales were 17,655 bopd, an increase of 23% compared to 14,393 bopd for the comparable 2012 period.
- Revenue was $147 million ($86.96/bbl) for the third quarter of 2013, an increase of 11% compared to $132 million ($80.45/bbl) in the previous quarter and an increase of 27% from $115 million ($79.58/bbl) in the third quarter of 2012. Revenue for the third quarter of 2013 represented 79% of the Brent oil price of $110/bbl, compared to 79% of the Brent oil price of $102/bbl in the previous quarter and 73% of the Brent oil price of $110/bbl in the third quarter of 2012.
- For the third quarter of 2013, royalties to the Albanian Government and related entities were $25 million (17% of revenue) compared to $22 million (16% of revenue) in the previous quarter and $23 million (20% of revenue) for the same quarter of 2012. Total royalties were $70 million (17% of revenue) and $60 million (19% of revenue) for the nine months ended September 30, 2013 and 2012, respectively.
- For the three and nine months periods ended September 30, 2013, operating, sales and transportation costs, originating from Albanian-based companies and their employees, were $39 million and $116 million, respectively, compared to $34 million and $98 million for the comparable periods of 2012.
- The Company recorded net operating income (netback) of $83 million ($49.05/bbl) in the third quarter of 2013, a 20% increase from $69 million ($42.19/bbl) in the previous quarter and 42% from $58 million ($40.23/bbl) in the third quarter of 2012. For the nine months ended September 30, 2013, net operating income was $225 million ($46.69/bbl), a 42% increase compared to $159 million ($40.29/bbl) in the comparable 2012 period.
- For the third quarter of 2013, funds generated from operations were $71 million, a 15% increase compared to $62 million for the previous quarter and a 47% increase compared to $48 million for the same period of 2012.
- Capital expenditures were $66 million in the third quarter of 2013. The Company drilled 34 wells during the quarter, comprised of 32 horizontal production wells and two horizontal lateral re-drill wells in the main area of the Patos-Marinza field. Capital expenditures were $52 million and $54 million for the previous quarter and the same period in 2012, respectively.
- The Company continues to maintain a strong financial position at September 30, 2013 with cash of $41 million and working capital of $122 million. At September 30, 2013, the Company had drawn $106 million of its $230 million approved credit facilities. Working capital for December 31, 2012 and September 30, 2012 was $89 million and $107 million, respectively.
Outlook
The average fourth quarter 2013 production to date from the Patos-Marinza oilfield in Albania continues steady growth at approximately 19,050 bopd, 3% higher than the third quarter average.
The Company is pleased with the performance of the horizontal drilling program with plans to drill an estimated thirty-four (34) horizontal wells and two (2) water disposal service wells in the fourth quarter. Delineation activities in the South Patos area and previously announced drilling and reactivations at Kuçova have been deferred to accommodate permitting and rig availability, however, the Company intends to proceed with these plans in early 2014.
Expansion plans of enhanced oil recovery (EOR), polymer flood and water flood patterns are moving forward in the fourth quarter. The Company continues to monitor and assess pilot performance with initial results expected in the first half of 2014.
In the third quarter, the Company increased spending to nearly $5 million on facilities and infrastructure projects, nearly double the infrastructure spending in the first half of the year with projections in the fourth quarter to spend a similar amount. Construction on a new satellite treatment facility in the north central region of the Patos-Marinza field and sludge treatment facility are in their final stages; both are scheduled to be operational in the first quarter of 2014. Other projects include existing well-pad retrofits, new well-pad cascade treating facilities, and installation of updated fluid measurement equipment.
"These are exciting times for Bankers. We began the year realizing our first quarter of free cash flow and we have now hit our third consecutive quarter, totalling $32 million free cash flow to date in 2013. We have built a solid platform of reliable, disciplined growth through our drilling program and expect to bring in a sixth rig by early 2014. I have been very pleased with the performance of the business, and our financial strength to grow within cash flow gives us lots of options to balance validating EOR with steady drilling growth." said David French, President and CEO of Bankers Petroleum.
| BANKERS PETROLEUM LTD. |
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
| (Unaudited, expressed in thousands of US dollars, except per share amounts) |
| |
|
|
Three months ended
September 30 |
|
Nine months ended
September 30 |
| |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| |
|
|
|
|
|
|
|
|
|
| Revenues |
|
$ |
146,665 |
$ |
115,054 |
$ |
411,065 |
$ |
316,309 |
| Royalties |
|
|
(24,664) |
|
(23,259) |
|
(69,655) |
|
(59,627) |
| |
|
|
122,001 |
|
91,795 |
|
341,410 |
|
256,682 |
| Unrealized loss on financial commodity contracts |
|
|
(2,208) |
|
(1,085) |
|
(3,588) |
|
(4,050) |
| |
|
|
119,793 |
|
90,710 |
|
337,822 |
|
252,632 |
| |
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
22,000 |
|
20,229 |
|
65,445 |
|
56,699 |
| Sales and transportation expenses |
|
|
17,276 |
|
13,407 |
|
50,933 |
|
41,101 |
| General and administrative expenses |
|
|
4,434 |
|
3,999 |
|
14,902 |
|
11,617 |
| Depletion and depreciation |
|
|
25,583 |
|
15,644 |
|
73,218 |
|
43,388 |
| Share-based payments |
|
|
1,692 |
|
1,953 |
|
8,053 |
|
7,636 |
| |
|
|
70,985 |
|
55,232 |
|
212,551 |
|
160,441 |
| |
|
|
48,808 |
|
35,478 |
|
125,271 |
|
92,191 |
| |
|
|
|
|
|
|
|
|
|
| Net finance expense |
|
|
3,311 |
|
3,732 |
|
8,867 |
|
8,449 |
| |
|
|
|
|
|
|
|
|
|
| Income before income tax |
|
|
45,497 |
|
31,746 |
|
116,404 |
|
83,742 |
| Deferred income tax expense |
|
|
(25,990) |
|
(19,472) |
|
(69,696) |
|
(52,450) |
| Net income for the period |
|
|
19,507 |
|
12,274 |
|
46,708 |
|
31,292 |
| |
|
|
|
|
|
|
|
|
|
| Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
| |
Currency translation adjustment |
|
|
263 |
|
820 |
|
(599) |
|
821 |
| Comprehensive income for the period |
|
$ |
19,770 |
$ |
13,094 |
$ |
46,109 |
$ |
32,113 |
| |
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
|
$ |
0.077 |
$ |
0.049 |
$ |
0.184 |
$ |
0.124 |
| Diluted earnings per share |
|
$ |
0.076 |
$ |
0.048 |
$ |
0.183 |
$ |
0.123 |
| |
|
|
|
|
|
|
|
|
|
| BANKERS PETROLEUM LTD. |
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
| (Unaudited, expressed in thousands of US dollars) |
| |
| ASSETS |
| |
|
|
September 30
2013 |
|
December 31
2012 |
| Current assets |
|
|
|
|
|
| |
Cash and cash equivalents |
|
$ |
33,550 |
$ |
33,740 |
| |
Restricted cash |
|
|
7,109 |
|
5,000 |
| |
Accounts receivable |
|
|
55,339 |
|
35,603 |
| |
Inventory |
|
|
35,021 |
|
23,517 |
| |
Deposits and prepaid expenses |
|
|
45,349 |
|
30,265 |
| |
Financial commodity contract |
|
|
- |
|
1,550 |
| |
|
|
176,368 |
|
129,675 |
| Non-current assets |
|
|
|
|
|
| |
Long-term receivable |
|
|
10,261 |
|
11,150 |
| |
Financial commodity contracts |
|
|
2,599 |
|
- |
| |
Property, plant and equipment |
|
|
775,766 |
|
681,399 |
| |
Exploration and evaluation assets |
|
|
6,593 |
|
3,592 |
| |
|
$ |
971,587 |
$ |
825,816 |
| |
| LIABILITIES |
| Current liabilities |
|
|
|
|
|
| |
Accounts payable and accrued liabilities |
|
$ |
52,676 |
$ |
38,787 |
| |
Current portion of long-term debt |
|
|
1,719 |
|
2,089 |
| |
|
|
54,395 |
|
40,876 |
| Non-current liabilities |
|
|
|
|
|
| |
Long-term debt |
|
|
98,153 |
|
97,158 |
| |
Decommissioning obligation |
|
|
18,685 |
|
16,747 |
| |
Deferred tax liabilities |
|
|
257,699 |
|
188,003 |
| |
|
|
428,932 |
|
342,784 |
| |
| SHAREHOLDERS' EQUITY |
| |
Share capital |
|
|
338,041 |
|
334,764 |
| |
Contributed surplus |
|
|
79,672 |
|
69,435 |
| |
Currency translation reserve |
|
|
6,763 |
|
7,362 |
| |
Retained earnings |
|
|
118,179 |
|
71,471 |
| |
|
|
|
542,655 |
|
483,032 |
| |
|
|
$ |
971,587 |
$ |
825,816 |
| BANKERS PETROLEUM LTD. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (Unaudited, expressed in thousands of US dollars) |
| |
|
Three months ended
September 30 |
|
Nine months ended
September 30 |
| |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| Cash provided by (used in): |
|
|
|
|
|
|
|
|
|
| Operating activities |
|
|
|
|
|
|
|
|
|
| |
Net income for the period |
|
$ |
19,507 |
$ |
12,274 |
$ |
46,708 |
$ |
31,292 |
| |
Depletion and depreciation |
|
|
25,583 |
|
15,644 |
|
73,218 |
|
43,388 |
| |
Accretion of long-term debt |
|
|
424 |
|
1,239 |
|
2,402 |
|
3,565 |
| |
Accretion of decommissioning obligation |
|
|
259 |
|
211 |
|
750 |
|
608 |
| |
Unrealized foreign exchange (gain) loss |
|
|
48 |
|
328 |
|
(400) |
|
448 |
| |
Deferred income tax expense |
|
|
25,990 |
|
19,472 |
|
69,696 |
|
52,450 |
| |
Share-based payments |
|
|
1,692 |
|
1,953 |
|
8,053 |
|
7,636 |
| |
Unwinding of discount of long-term receivable |
|
|
(681) |
|
- |
|
(2,122) |
|
- |
| |
Revaluation loss of long-term receivable |
|
|
681 |
|
- |
|
954 |
|
- |
| |
Unrealized loss on financial commodity contracts |
|
|
2,208 |
|
1,085 |
|
3,588 |
|
4,050 |
| |
Cash premiums paid for financial commodity contracts |
|
|
(4,637) |
|
(3,898) |
|
(4,637) |
|
(3,898) |
| |
|
|
|
71,074 |
|
48,308 |
|
198,210 |
|
139,539 |
| |
Change in long-term receivable |
|
|
- |
|
- |
|
2,057 |
|
- |
| |
Change in non-cash working capital |
|
|
5,722 |
|
(16,153) |
|
(39,227) |
|
(28,767) |
| |
|
|
|
76,796 |
|
32,155 |
|
161,040 |
|
110,772 |
| Investing activities |
|
|
|
|
|
|
|
|
|
| |
Additions to property, plant and equipment |
|
|
(63,879) |
|
(53,506) |
|
(162,914) |
|
(166,957) |
| |
Additions to exploration and evaluation assets |
|
|
(2,320) |
|
(20) |
|
(3,001) |
|
(1,902) |
| |
Restricted cash |
|
|
- |
|
(13,417) |
|
(2,109) |
|
(13,417) |
| |
Change in non-cash working capital |
|
|
5,260 |
|
736 |
|
6,792 |
|
(3,373) |
| |
|
|
|
(60,939) |
|
(66,207) |
|
(161,232) |
|
(185,649) |
| Financing activities |
|
|
|
|
|
|
|
|
|
| |
Issue of shares for cash |
|
|
545 |
|
- |
|
1,955 |
|
12,177 |
| |
Financing costs |
|
|
- |
|
- |
|
(1,994) |
|
(750) |
| |
Change in long-term debt |
|
|
(9,191) |
|
290 |
|
10 |
|
36,107 |
| |
|
|
(8,646) |
|
290 |
|
(29) |
|
47,534 |
| Foreign exchange gain on cash and cash equivalents |
|
|
67 |
|
160 |
|
31 |
|
25 |
| Increase (decrease) in cash and cash equivalents |
|
|
7,278 |
|
(33,602) |
|
(190) |
|
(27,318) |
| Cash and cash equivalents, beginning of period |
|
|
26,272 |
|
55,297 |
|
33,740 |
|
49,013 |
| Cash and cash equivalents, end of period |
|
$ |
33,550 |
$ |
21,695 |
$ |
33,550 |
$ |
21,695 |
| |
|
|
|
|
|
|
|
|
|
| Interest paid |
|
$ |
44 |
$ |
253 |
$ |
2,832 |
$ |
1,975 |
| Interest received |
|
$ |
26 |
$ |
43 |
$ |
145 |
$ |
321 |
Supporting Documents
The full Management Discussion and Analysis (MD&A), Financial Statements and updated November corporate presentation are available on www.bankerspetroleum.com. The MD&A and Financial Statements will also be available on www.sedar.com.
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 reactivations and well recompletions of the past will continue and success rates and production rates will be similar to those rates experienced for previous well recompletions and reactivations; 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.
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:
David French
President and Chief Executive Officer
(403) 513-6930
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
+44 207 523 8000
AIM BROKER:
FirstEnergy Capital LLP
Hugh Sanderson / David van Erp
+44 0 207 448 0200
| |
