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Bankers Petroleum Significantly Increases Revenue And Net
Operating Income In Second Quarter 2007
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Promising Woodford Shale Sections Encountered in Several Oklahoma Wells
Unless otherwise noted, all figures contained in this release are in
U.S. dollars.
CALGARY, August 9, 2007 - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK)
today announced strong results and improvements in all financial areas
in its second quarter of 2007. Revenue for the quarter increased 74% to
$12.9 million compared to $7.4 million in the second quarter of 2006.
Net operating income grew to 1.4 million in the quarter from a loss of
$0.7 million in the second quarter of 2006. Funds from operations were
$4.8 million, compared to $3.2 million for the comparable period in
2006.
"Our ability to increase exports, capturing the discount relative to
our domestic sales and higher international oil prices, have
substantially contributed to increasing our netback to over $16 per
barrel in the quarter," said Richard Wadsworth, President. "Our
continuing efforts to improve operations on all fronts have resulted in
gains in production, revenue, netback and funds from operations while
decreasing operating costs in Albania."
Mr. Wadsworth continued, "In the U.S., we've advanced our exploration
program substantially with the drilling of our first horizontal wells
in Oklahoma and participation in numerous others. While we're still
undergoing testing on the first horizontal well, preliminary flowback
results have been positive, leading us closer to a development plan for
the Ardmore basin. This basin represents a significant growth
opportunity for the Company if production and reserve levels from our
wells are similar to those of other operators in the area. In addition,
we continue to work towards showing repeatability in our drilling
activities for the Palo Duro basin, and are making continuous
progress."
Second Quarter Highlights:
- Average production increased 49% to 4,746 bopd from 3,193 bopd for the
same period in 2006, and 8% compared to 4,380 bopd for the first
quarter of 2007.
- Exit production for June 2007 was approximately 5,000 bopd.
- Oil and gas revenue rose 74% to $12.9 million from $7.4 million in the
comparable period in 2006, and 21% from $10.7 million in the first
quarter of 2007.
- The netback in Albania improved to $16.14 per barrel from $11.42 in the
preceding quarter and $11.09 per barrel for the same period in 2006.
- Funds from operations increased to $4.8 million from $2.9 million and
$3.3 million for the first quarter of 2007 and the corresponding period
in 2006, respectively.
- All required equipment for the Company's cyclical steam pilot is in
country in order to commence testing operations in the second half of
2007.
- Approximately 60% of the Company's crude oil was exported during the
second quarter at an average price of $36.15 per barrel.
- In Oklahoma, Bankers completed its first horizontal well, Greenway
#35-1H, which offsets the Nickel Hill #1-26 discovery well.
Approximately 2,800 feet of horizontal section was successfully
fracture stimulated in the upper, middle and lower Woodford intervals.
The Greenway 35-1H well is currently flowing back fracture fluid and
undergoing testing.
- In Texas, Bankers drilled the Black 4#1 well, which encountered a 280
foot thick Bend Shale interval as well as numerous potentially
productive Granite Wash Sands intervals.
- A second horizontal well was spudded about 10 miles to the southeast of
the Greenway well, the W.L.C. 17-1H. The horizontal portion of the well
is now being drilled, which is projected to extend to a length of 3,000
feet. The analysis of the vertical wellbore indicates a 325 foot thick
Woodford shale section that compares favorably with the other wells
drilled in the area.
Conference Call:
A conference call to discuss these results will be held Friday, August
10 at 9:00 a.m. MDT, 11:00 a.m. EDT, 4:00 p.m. BDT. To participate in
the conference call, please dial 1-866-250-4910 or 1-416-915-5648
approximately 10 minutes prior to the call. A live and archived audio
webcast of the conference call will also be available on Bankers'
website at www.bankerspetroleum.com.
About Bankers Petroleum Ltd.
Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and
production company focused on opportunities in unconventional petroleum
assets. Bankers holds interests in four prospects in the Northern and
Central regions of the United States, where it is currently pursuing
the exploration of shale and tight gas sand plays. It also operates in
the Patos-Marinza oilfield in Albania pursuant to a license agreement,
producing heavy oil. Bankers shares are traded on the Toronto Stock
Exchange and the AIM Market in London, England under the ticker symbol
BNK.
For further information, contact:
Susan J. Soprovich
VP, Investor Relations and Corporate Governance
Ph: (403) 513-2681
Email: investorrelations@bankerspetroleum.com
Website: www.bankerspetroleum.com
AIM NOMAD:
Ryan Gaffney
+44 20 7050 6777
View News Release in PDF Format:
File: http://www.bankerspete.com/i/pdf/BankersQ29Aug07.pdf
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Copyright (c) 2007 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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