======================================================================
Re: News Release - Monday, May 12, 2008
Bankers Announces Strong Operational And Financial Results In The
First Quarter Of 2008
======================================================================
Record Revenue, Net Operating Income and Funds from Operations
CALGARY, May 12, 2008 - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK)
today announced strong operational and financial results as continued
growth was achieved over the first quarter of 2008.
Three months ended March 31
($000s, except as noted) 2008 2007 %
Oil and gas revenue 26,244 10,739 144
Net operating income 13,932 4,510 209
Net income (loss) 306 (1,050) 129
Funds from operations 10,115 2,852 255
First Quarter Highlights:
- In Albania, average production was 5,218 bopd compared to 4,388 bopd
for the same period in 2007 and 5,429 bopd for the fourth quarter of
2007.
- Crude oil inventory in Albania at March 31, 2008, increased to 98,000
barrels to meet required export delivery schedules.
- Exit production for March 2008 was approximately 5,420 bopd in
Albania.
- In the U.S., average gas production was 762 mcf/d compared to 462
mcf/d for the fourth quarter of 2007; average condensate and NGL
production was 107 bopd compared to 37 bopd for the previous quarter.
- On a combined basis, this represented 5,452 boed for the first
quarter of 2008, as compared to 4,388 boed for the first quarter of
2007 and 5,543 boed for the fourth quarter of 2007.
- The Company completed a non-brokered private placement, issuing an
aggregate of 66,666,666 common shares at CAD$0.90 per share, resulting
in net proceeds of $58.3 million.
Albania
- Effective January 1, 2008, the Company renegotiated its domestic
crude oil sales agreement with the Albanian Refining and Marketing
Organization, ARMO Sh.a (ARMO), renewed its export agreement with one
of the Italian refineries and finalized a new agreement with a second
Italian refinery. The new domestic price compares favourably to the
previous contract, becoming competitive with export pricing.
o The average oil price was $51.96 per barrel (54% of Brent); total
export volume represented 42% of production.
- Bankers acquired a 50% working interest in the Kucova oil field in
Albania along with an option to acquire the remaining 50% working
interest by June 30, 2008. The Kucova field has in excess of 490
million barrels of original-oil-in-place.
United States
- In Oklahoma, Bankers finished fracture stimulating its third and
fourth horizontal shale gas wells in the Tishomingo field, the Brock
4-1H and Brock 9-1H.
- The wells continue to flow back fracture fluid and are now producing.
Initial gross production rates were approximately 2.1 mmcfe/d and 1.8
mmcfe/d respectively.
- A gathering system was installed to connect the Brock wells to the
processing facility, which was completed in late March. Bankers is
waiting on a larger compressor to optimize production in May.
- Three new horizontal wells were spud in the Tishomingo gas field in
the quarter and are at various stages of completion.
The Company anticipates that restructuring details of Bankers Petroleum
(US) Inc. will be announced this week.
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 oil field and has a 50% interest in the Kucova oil
field. It also holds an average 50% interest in the Tishomingo gas
field in Oklahoma and varied interests in three other areas in the
Northern and Central regions of the United States, where it is
currently pursuing the exploration, development and production of shale
and tight sand gas plays. 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:
Abby Badwi Chief Executive Officer (403) 513-2694
Doug Urch VP, Finance and Chief Financial Officer (403) 513-2691
Susan J. Soprovich VP, Investor Relations and Corporate Governance
(403) 513-2681
Email: investorrelations@bankerspetroleum.com
Website: www.bankerspetroleum.com
AIM JOINT NOMAD:
Canaccord Adams Limited Tristone Capital Ltd.
Ryan Gaffney/ Henry Fitzgerald-O��Connor Nick Morgan
+44 20 7050 6500 +44 20 7355 5800
Click here to view Complete News release in PDF:
http://www.bankerspete.com/i/pdf/2008-05-12_NR.pdf
229 KB in size, approx. 44 seconds to download at 56.6Kbps
======================================================================
Copyright (c) 2008 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
======================================================================
.
![]()