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Bankers Petroleum Announces Second Quarter Financial And
Operational Results
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2009 Horizontal Drilling Update
CALGARY, August 14, 2009 - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK, AIM: BNK) is pleased to announce today its
financial and operating results for the period ended June 30th, 2009:
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Q2 - 2009 Q1 - 2009 Q2 - 2008
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Capital Expenditures ($000) 6,126 2,835 17,100
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Brent Oil Price $/bbl 58.79 44.40 121.51
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Patos Marinza Oil Price $/bbl 34.63 24.73 64.36
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Operating Costs $/bbl 9.90 10.44 14.03
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Transportation $/bbl 3.45 2.70 3.27
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Royalties $/bbl 9.28 6.61 12.43
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Netback $/bbl 12.00 4.98 34.63
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HIGHLIGHTS
- Production averaged 6,383 bopd, an increase of 9% over the first
quarter of 2009.
- Revenue increased by 53% to $20.1 million ($34.63/bbl - 59% of Brent)
in the second quarter of 2009 from $13.1 million ($24.73/bbl - 56% of
Brent) in the first quarter. The fluctuation in the sales prices
reflected the change in Brent prices, which averaged $58.79 for the
second quarter of 2009. Comparatively, average Brent prices were
$44.40 for the preceding quarter.
- Net operating income (netbacks) increased to $7.0 million
($12.00/bbl) from $3.7 million ($4.98/bbl) over the first quarter of
2009.
- Operating expenses have decreased to $9.90/bbl in the second quarter
of 2009 from the preceding quarter of $10.44/bbl.
- Funds generated from operations increased to $6.0 million in the
second quarter of 2009 from $1.3 million over the previous quarter.
- Capital expenditures were limited to $6.1 million to minimize balance
sheet risk and to focus on forward planning in a stable oil price
environment.
- To strengthen its balance sheet, on May 7, Bankers completed a
bought-deal equity issue with a syndicate of underwriters of
25,143,800 common shares of the Company at CAD$1.75 per common share,
generating gross proceeds of CAD$44.0 million.
- On May 8, Bankers announced it had finalized a $110.0 million
reserve-based long-term credit facility with the International
Finance Corporation (IFC), a member of the World Bank Group, and the
European Bank for Reconstruction and Development (EBRD) to supplement
the Company's existing $32.0 million credit facility with Raiffeisen
Bank.
- IFC and EBRD each received warrants in conjunction with the financing
to purchase eight million common shares of the company at a price of
CAD$1.50 per share. The warrants were exercised in July 2009
generating proceeds of CAD$24.0 million resulting in IFC and EBRD
each having a 3.6% equity interest in the Company.
- In July 2009, Bankers commenced export operations at the new Port of
Vlore export terminal for the storage and handling of its oil in a
13,000 cubic meter Company-dedicated oil tank. The storage facility
has significantly improved the Company's export operations and is
expected to lead to additional export contracts.
Results at a Glance Six months ended June 30
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2009 2008
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Financial ($000s, except as noted)
Oil revenue 33,159 58,833
Net operating income 9,595 31,144
Net income (loss) (4,171) 1,544
Basic and diluted earnings (loss) per share (0.022) 0.009
Funds generated from operations 7,263 26,241
June 30
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2009 2008
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Cash and deposits 41,147 42,516
Working capital 28,161 27,918
Total assets 257,689 201,093
Bank loans 32,651 29,004
Other long-term liabilities 35,491 30,181
Shareholders' equity 174,640 119,964
PATOS MARINZA DRILLING UPDATE
successful first horizontal well (375 metre lateral section) which is
currently producing at an average rate of 150 bopd and has produced in
excess of 31,000 barrels since January 2009.
The second horizontal well (475 metre lateral) was placed on production
on August 3, 2009, and is currently producing at a rate of 160 bopd and
improving. The third horizontal well was drilled and cased as an oil
well (600 metre lateral) and is expected to be completed and commenced
production on August 14.
The drilling program is continuing with the spudding of the fourth
horizontal well on August 12, 2009. The Company is planning to drill
seven additional horizontal wells and three vertical locations before
year-end 2009.
With excellent horizontal well productivities and improved drilling
time and well costs, the Company has solicited bid proposals for a
second drilling rig and is currently evaluating several offers. Bankers
expects to have the second rig on location by early 2010 and is
planning a significant increase of the number of horizontal wells to be
drilled in 2010 and beyond.
The well re-activation and re-completion program of existing wells will
continue simultaneously with the new well drilling program.
Current production is 6,200 bopd with an additional 600 bopd from
shut-in wells which we expect to bring back on production over the next
few weeks as the Company continues with its full operational well
service activities that were curtailed during the first half of 2009
due to low oil prices.
Bankers second quarter results have now been incorporated into the
corporate presentation and will be posted on Bankers website later
today.
Abby Badwi, President and Chief Executive Officer will host a
conference call and webcast on Monday, August 17, 2009 at 9:00 a.m.
MST. For complete details please go to www.bankerspetroleum.com.
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 both the
Patos Marinza and the Ku�ova heavy oil fields. Bankers' shares are
traded on the Toronto Stock Exchange and the AIM Market in London,
England under the stock symbol BNK.
For further information, contact:
Abby Badwi
President and Chief Executive Officer
(403) 513-2694
Doug Urch
VP, Finance and Chief Financial Officer
(403) 513-2691
Email: investorrelations@bankerspetroleum.com
Website: www.bankerspetroleum.com
AIM NOMAD:
Canaccord Adams Limited
Ryan Gaffney/ Henry Fitzgerald-O'Connor
+44 20 7050 6500
AIM JOINT BROKERS:
Canaccord Adams Limited
Ryan Gaffney/ Henry Fitzgerald-O'Connor
+44 20 7050 6500
Tristone Capital Ltd.
Nick Morgan
+44 20 7355 5800
Click to view the entire news release in PDF:
Associated File:
http://www.bankerspete.com/i/pdf/Q2-2009-Bankers-NR-MDA-FIN.pdf
246 KB in size, approx. 47 seconds to download at 56.6Kbps
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Copyright (c) 2009 BANKERS PETROLEUM LTD. (BNK.H) All rights reserved.
For more information visit our website at http://www.bankerspete.com/
or send mailto:info@bankerspetroleum.com
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Bankers Petroleum Ltd.
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CODE : BNK.TO |
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CUSIP : 38142Q |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Bankers Petroleum is a oil exploration company based in Canada. Bankers Petroleum produces oil, natural gas in Albania, and holds various exploration projects in Albania. Its main asset in production is PATOS-MARINZA in Albania and its main exploration properties are KUÇOVA and KUCOVA HEAVY OILFIELD in Albania. Bankers Petroleum is listed in Canada, in Germany and in United Kingdom. Its market capitalisation is CA$ 2.8 billions as of today (US$ 2.1 billions, € 1.9 billions). Its stock quote reached its lowest recent point on December 31, 2007 at CA$ 0.35, and its highest recent level on April 26, 2024 at CA$ 10.81. Bankers Petroleum has 261 560 000 shares outstanding. |