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SOURCE Bankers Petroleum Ltd.
Average Quarterly Production 18,541 bopd
CALGARY, Oct. 4, 2013 /PRNewswire/ - Bankers Petroleum Ltd. (Bankers or the Company) (TSX: BNK, AIM: BNK) is pleased to announce the Company's third quarter operational update.
Production, Sales and Oil Prices
Average production from the Patos-Marinza oilfield in Albania for the third quarter of 2013 was 18,541 barrels of oil per day (bopd), 3.7% higher than 17,886 bopd in the second quarter. Oil sales during the quarter averaged 18,332 bopd, 1.8% higher than the previous quarter average of 18,008 bopd. The crude oil inventory at September 30, 2013 was 349,000 barrels, 19,000 barrels higher than 330,000 barrels at June 30, 2013.
The Patos-Marinza third quarter average oil price was approximately $86.88 per barrel (representing 79% of the Brent oil price of $110.37 per barrel), as compared with the second quarter average oil price of $80.45 per barrel (representing 79% of the Brent oil price of $102.43 per barrel).
For the nine months ended September 30, 2013 oil sales were 17,655 bopd ($85.26 per barrel) an increase of 23% from 14,393 bopd ($80.21 per barrel) for the comparable 2012 period.
Thirty-four (34) horizontal wells were drilled and rig released during the third quarter in the main area of the Patos-Marinza oilfield: thirty-two (32) horizontal production wells and two (2) horizontal lateral re-drills. Twenty-five (25) of these wells were completed and are on production, and the remaining nine (9) will be placed on production in October pending rig move off the pad, well completion, and facilities build.
Bankers continues to develop the field through pad drilling of multiple zones within the core area of the Patos-Marina oilfield. In conjunction with the primary drilling program, the Company will continue to expand on the water and polymer flood patterns.
In addition, the Company drilled the second exploration well on Block "F" early in the third quarter and has commenced lease construction for the first horizontal development well at Kuçova which is expected to be spud in the fourth quarter.
Secondary and Tertiary Recovery Program
The Company continues to monitor its Upper Marinza water flood and Lower Driza polymer flood patterns with initial production response expected in the first half of 2014. The water flood patterns include three (3) injection wells with the third injector added in August. The polymer flood patterns include two (2) injection wells, plus a third injector which has been converted in September and will commence injection in October. Fourth quarter plans include additional conversion of three (3) polymer injection and up to four (4) water injection wells.
Bankers continues to focus on key infrastructure projects aimed at reducing cost and optimizing operations in the field. Foundation work has been completed for an additional satellite treating facility in the north-central region of the Patos-Marinza field as well as new sludge treatment facilities, with tank construction underway. Additional work on flow-lines, sour treatment facilities, and cascade systems continue in the fourth quarter.
Updated Corporate Presentation
For additional information on this operational update, please see the October version of the Company's corporate presentation at www.bankerspetroleum.com.
The Management of Bankers will host a conference call on October 4, 2013 at 7:00 am MDT to discuss this Operational Update. 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/1234115/1359487.
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 October 18, 2013 by dialing 1-855-859-2056 or 1-416-849-0833 and entering access code 74626638.
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 COO 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.
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