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Bankers Petroleum Achieves Quarter-Over-Quarter Growth In Third
Quarter 2007
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Positive Results and Natural Gas Sales in Oklahoma Lead to Potential
Development Project
Unless otherwise noted, all figures contained in this release are in
U.S. dollars.
CALGARY, November 8, 2007 -- Bankers Petroleum Ltd. (TSX: BNK, AIM:
BNK) today announced strong results and continued quarter-over-quarter
growth in its third quarter of 2007. Revenue for the quarter increased
77% to $16.4 million compared to $9.4 million in the third quarter of
2006. Net operating income grew to $8.8 million in the quarter from
$4.3 million in the comparable period in 2006. Funds from operations
were $6.4 million, compared to $3.0 million for the third quarter of
2006.
"Continued production growth, strength in our export capacity and
increased international oil prices have resulted in further gains to
our netback to almost $20 in the quarter," said Richard Wadsworth,
President. "We are proving our ability to add value from our primary
production efforts, and are stepping forward in our strategy to
increase reservoir recovery and production from secondary and enhanced
oil recovery technologies. The start-up of testing and steam injection
from our thermal steam project will provide valuable data for expansion
of our pilot in 2008."
Mr. Wadsworth continued, "In the U.S., we've made significant progress
in a very short period in the Ardmore basin: our first vertical and
horizontal wells were put on production at 3.1 mmcfe/d gross; our
second horizontal well is testing with rates around 2.1 mmcfe/d gross;
our third horizontal well is drilled; and our fourth horizontal well
spudded. With these initial results we believe this basin has the
potential for a solid development project that will add significant
upside for the Company and its shareholders."
Third Quarter Highlights:
- Average crude oil production was 4,979 bopd compared to 4,746 bopd
for the second quarter of 2007 and 4,000 bopd for the third quarter of
2006, increases of 5% and 24% respectively.
- Exit crude oil production for September 2007 was approximately 5,000
bopd.
- Bankers began selling natural gas from its Oklahoma properties in
September.
- Consolidated oil and gas revenue rose 77% to $16.4 million from $9.2
million in the comparable period in 2006, and 27% from $12.9 million in
the second quarter of 2007.
- The netback in Albania improved to $19.93 per barrel from $16.14 in
the preceding quarter and $12.44 per barrel for the third quarter of
2006.
- Net operating income was $8.8 million, an increase of 105% and 40%
from the same period in 2006 and the second quarter of 2007,
respectively.
- Net income for the period was $264,000 compared to net income of
$600,000 and loss of $208,000 for the preceding quarter and the third
quarter of 2006. Net income was lower as compared to the second quarter
of 2007 due to the rapidly accelerating non-cash future income tax
expense.
- Funds from operations increased 34% to $6.4 million from $4.8 million
for the second quarter of 2007, and 118% from $3.0 million for the
third quarter of 2006.
- Bankers' available debt facility increased by $10.0 million to $31.0
million.
- Construction of the Company's thermal steam pilot was completed and
testing and steam injection commenced in October.
- Approximately 55% of the Company's Albanian crude oil production was
exported during the third quarter at an average price of $44.37 per
barrel.
- In Oklahoma, Bankers began selling natural gas and liquids from the
Nickel Hill #1-26 and Greenway 35-1H wells. Initial production rates
were:
- The vertical Nickel Hill #1-26 well: approximately 900 mcfe/d.
- The Greenway 35-1H well: approximately 2.2 mmcfe/d.
- Bankers second successful Oklahoma horizontal well, the WLC 17-1H
well, commenced initial production at approximately 2.1 mmcfe/d.
- In Texas, Bankers finished drilling the horizontal leg of the Cogdell
#64-1 well in the Atoka A, Granite Wash Sand formation. Early results
during drilling indicate good natural gas shows from the sand.
Conference Call:
A conference call to discuss these results will be held Friday,
November 9 at 9:00 a.m. MDT, 11:00 a.m. EDT, 4:00 p.m. BDT. To
participate in the conference call, please dial 1-800-594-3615 or
1-416-644- 3426 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 gas 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:
Canaccord Adams Limited
Ryan Gaffney/ Adam Janikowski
+44 20 7050 6500
Click to view the entire news release in pdf:
File: http://www.bankerspete.com/i/pdf/Q320078Nov07-new.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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