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
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...
At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
In this presentation, you will learn first hand what works and what doesn't while architecting and deploying OpenStack. Some of the topics will include:- best practices for creating repeatable deployments of OpenStack- multi-site considerations- how to customize OpenStack to integrate with your existing systems and security best practices.
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In a world where the internet rules all, where 94% of business buyers conduct online research, and where e-commerce sales are poised to fall between $427 billion and $443 billion by the end of this year, we think it's safe to say that your website is a vital part of your business strategy. Whether you're a B2B company, a local business, or an e-commerce site, digital presence is key to maintain in your drive towards success. Digital Performance will take priority in 2018 for the following reason...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...