Welcome!

News Feed Item

Bankers Petroleum announces 2013 year-end reserves

232 Million Barrels of Proved plus Probable (2P) Reserves; NPV of US$2.24 billion
Average Production First Quarter to Date 19,700 bopd

CALGARY, Feb. 21, 2014 /PRNewswire/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to provide the results of its December 31, 2013, independent reserves evaluation. Evaluations were conducted by RPS Energy Canada Ltd. (RPS) for the Patos-Marinza oilfield, Albania, and by DeGolyer and McNaughton Canada Ltd. (D&M) for the Kuçova oilfield, Albania; and were prepared in accordance with Canadian National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

Total Company Reserves Summary

Gross Oil Reserves - Using Forecast Prices (Million barrels)

                 
  2013   2012    
  Patos-
Marinza
Kuçova Total
Albania
  Patos-
Marinza
Kuçova Total
Albania
  %
Proved                  
  Developed Producing 40.3 - 40.3   25.4 - 25.4   59
  Developed Non-Producing 0.7 - 0.7   3.0 - 3.0   -
  Undeveloped 102.3 3.4 105.7   107.6 3.4 111.0   -5
Total Proved (1P) 143.3 3.4 146.7   136.0 3.4 139.4   5
Probable 77.0 8.5 85.5   77.8 8.5 86.3   -1
Total Proved Plus Probable (2P) 220.3 11.9 232.2   213.8 11.9 225.7   3
Possible 104.0 21.4 125.4   110.8 21.5 132.3   -5
Total Proved, Probable &
Possible (3P)
324.3 33.3 357.6   324.6 33.4 358.0   0

Patos-Marinza Contingent and Prospective Resources (MMbbls - P50)

       
  2013 2012 %
Contingent Resource 505 534 -5
Prospective Resource 259 254 2
Total Resources 764 788 -3

Highlights

  • 1P Reserves after tax value discounted at 10% increased 27% to US$1.2 billion (representing CAD$5.27 per share);
  • 2P Reserves after tax value discounted at 10% increased 20% to US$2.2 billion (representing CAD$9.72 per share);
  • Main drivers for the increased valuation are operational improvements, an accelerated drilling program and lower future development costs. Operating costs per unit have decreased with reduction in diluent usage, treating system improvements, reduced energy consumption, and improved pump performance;
  • 2013 Company average production was 18,169 bopd for an annual total volume of 6.6 million barrels (4.5% of total proved reserves);
  • Reserves Life Index for 1P and 2P is 22 years and 35 years respectively;

Net Present Value at 10% - After Tax Using Forecast Prices (US$ millions)

                 
  2013   2012   %
  Patos-
Marinza
Kuçova Total
Albania
  Patos-
Marinza
Kuçova Total
Albania
   
Proved                  
  Developed Producing 568 - 568   372 - 372   55
  Developed Non-Producing 11 - 11   44 - 44   -
  Undeveloped 614 23 637   517 26 543   22
Total Proved 1,193 23 1,216   932 26 958   27
Probable 926 98 1,024   793 115 908   13
Total Proved Plus Probable 2,119 121 2,240   1,724 141 1,865   20
Possible 1,003 296 1,299   860 354 1,214   7
Total Proved, Probable &
Possible
3,122 417 3,539   2,584 495 3,079   15

       
Reserves Value
10% Discounted, After Tax
CAD$/Share   US$/bbl
1P reserves $5.27   $8.49
2P reserves $9.72   $9.77
3P reserves $15.36   $9.98

Basic shares outstanding of as of December 31, 2013, were approximately 256 million (281 million diluted).

Values are based on RPS (Patos-Marinza) and D&M (Kuçova) January 1, 2014, price forecast tables summarized below:

Reserve Auditor Price Decks - Dated Brent

   
BRENT Oil Price Forecast US$/bbl  
Year RPS D&M
2014 $105.20 $106.00
2015 $100.60 $101.80
2016 $95.80 $101.64
2017 $95.50 $101.51
2018 $97.40 $101.42
2019 $99.40 $101.58
2020 $101.40 $103.61
2021 $103.40 $105.68
2022 $105.40 $107.79
2023 $107.60 $109.95
2024 $109.70 $112.15
2025 +2.0% Thereafter +2.0% Thereafter

Patos-Marinza Crude Pricing

The average sales price for export sales is approximately 81% of Brent (an increase of 2% over the 2013 average realized pricing of 79% of Brent). The average realized sales price the Company is receiving for crude oil from the Patos-Marinza and Kuçova oilfields is at a discount to Brent oil.

Albanian Fiscal Changes

Pursuant to the 2014 Albanian fiscal changes, these reserve reports are based on the assumption that the Company and Government of Albania will reach agreement on adequate offsets in recognition of the economic stabilization provisions of the hydrocarbon agreements and that the previously exempted value added tax will be fully reimbursed in a timely manner.  Precedent for such an offset arrangement was established during the 2008 Royalty Tax implementation.

Finding and Development Costs (F&D)

In the Patos-Marinza 2P development case, the future horizontal well count has decreased from 1,085 to 995. The average cost per well is $1.2 million.

Total future undiscounted capital costs for Patos-Marinza and Kuçova are projected to be US$2.2 billion, US$2.3 billion and US$2.5 billion on a 1P, 2P and 3P basis, respectively. This represents the following F&D costs, calculated as total future development capital divided by recoverable reserves excluding currently developed PDP and PDNP reserves:

     
  2013 2012
F&D Costs US$/bbl US$/bbl
1P reserves $20.45 $20.90
2P reserves $12.08 $12.27
3P reserves $7.85 $8.08

Oil Initially in Place

In Patos-Marinza, the Oil Initially in Place ("OIIP") volumes in the reserves area remain at 2.4 billion barrels and the OIIP outside the reserves area remains at 2.7 billion barrels in 2013.

The Kuçova OIIP resource estimate remains at 297 million barrels.

David French, President and CEO commented "The Company is very pleased to announce an increase in our reserves on the back of a year of record production in the field. The 2013 reserve report reflects our strategy of engineering momentum through drilling efficient, predictable horizontal wells and enhancing the operating margin of every barrel we produce.  These new reserves reflect a 20% increase in the net present value of our 2P reserve base and reinforce the strength of our base business - optimizing the performance of this world class heavy-oil asset."

Operational Update

Average production for the first quarter to date was 19,700 bopd; this rate is 2% higher than the fourth quarter average production of 19,303 bopd.

The sixth drilling rig is now in country undergoing final inspection. It will commence drilling in the first quarter of 2014.

Further details, including the February 2014 Corporate Presentation, are available on the Company's website www.bankerspetroleum.com.

Conference Call

Bankers' Management will host a conference call on February 21, 2014 at 6:30 am MST to discuss this reserves report. Following Management's presentation, there will be a question and answer session for analysts and investors.

To participate in the conference call, please contact the conference operator ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450.  A live audio web cast of the conference call will also be available on Bankers' website at www.bankerspetroleum.com or by entering the following URL into your web browser http://www.newswire.ca/en/webcast/detail/1301697/1436315.

The web cast will be archived two hours after the presentation on the website, and posted on the website for 90 days.  A replay of the call will be available until March 07, 2014 by dialing 1-855-859-2056 or 1-416-849-0833 and entering access code 89045312.

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 takeovers, well reactivations and well recompletions of the past will continue and success rates will be similar to those rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce at rates similar to the average rate of production achieved from wells recompletions/reactivations/development in the past; 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.

Review by Qualified Person

This release was reviewed by Suneel Gupta, Executive Vice President and Chief Operating Officer of Bankers Petroleum Ltd., who is a "qualified person" under the rules and policies of AIM in his role with the Company and due to his training as a professional petroleum engineer (member of APEGA) with over 20 years' experience in domestic and international oil and gas operations. 

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, 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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
With over 720 million Internet users and 40–50% CAGR, the Chinese Cloud Computing market has been booming. When talking about cloud computing, what are the Chinese users of cloud thinking about? What is the most powerful force that can push them to make the buying decision? How to tap into them? In his session at 18th Cloud Expo, Yu Hao, CEO and co-founder of SpeedyCloud, answered these questions and discussed the results of SpeedyCloud’s survey.
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...