Fully Funded US$313 Million Capital Program in Albania
CALGARY, Dec. 12, 2013 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK, AIM: BNK) is pleased to announce its 2014 capital
program of US$313 million, to be fully funded with funds generated from
operations, cash and available credit facilities. This represents a
record annual activity level for the Company. The budget has been
approved by the Company's Board of Directors and submitted to the
Albanian authorities for their approval.
The 2014 capital program will focus on horizontal drilling and expansion
of the secondary recovery program in the Patos-Marinza oilfield. The
Company will also direct capital towards associated projects including
infrastructure and facilities construction, drilling of core wells in
the South area of the field, new development in Kuçova, and exploration
for natural gas in Block "F".
David French, President & CEO commented, "Our 2014 capital budget
extends on Bankers three key strategies of disciplined growth through
drilling, validation of our enhanced recovery potential, and expanding
our operating margins. We have put together a balanced spend profile to
deliver reliable in-year production growth, and at the same time build
on our understanding of the prize of further development over the next
Primary Drilling Capital
With the addition of the sixth drilling rig in the first quarter and a
budget of $216 million, the Company intends to drill a total 150 to 170
wells in 2014. This includes horizontal development wells, lateral
re-drills, vertical delineation wells, and core wells. Approximately
90% of drilling activities will focus on production growth and 10% of
the wells will target new reserves through delineation of zones and
areas. Included in the drilling budget is $15 million for re-activation
and work-over of old vertical wells.
Water and Polymer Flood Program
The 2014 capital program includes $15 million for expansion of polymer
and water flood patterns with up to fourteen (14) injector conversions
as well as associated facilities aimed to offset field declines and
increase recovery of the oil in place. The Company will continue to
evaluate the existing patterns and adjust the secondary recovery plan
based on early results, which are expected in the first half of the
Facilities, Infrastructure, and Associated Capital
A total of $76 million of the 2014 capital program will be allocated to
facilities and infrastructure activities in 2014. Projects include:
construction of additional sales tank storage;
flow lining within the field;
continuation of the water remediation program, as required;
expansion of water disposal capabilities with up to three (3) water
disposal wells; and
continuation of environmental remediation and social initiatives.
The Company plans to spend $4 million on drilling of the first two (2)
horizontal wells in the Kuçova oilfield to produce lighter oil and
evaluate further field development. The budget also includes capital
for re-activation of offset vertical wells for data collection and
Block "F" Exploration Block
The Company has submitted an application to enter into the second
exploration phase of Block "F" for an additional two year period. The
capital program for 2014 includes $2 million dollars for the
acquisition of 20 km2 of 3D seismic, with commitments to drill two (2) exploratory wells in
the following year. As a part of the agreement to extend the
exploration phase, the Company will relinquish 25% of the block within
the first quarter of 2014.
CAPITAL PROGRAM FUNDING
Bankers is pleased to announce that 70% of 2014 crude volumes have been
committed through term contracts to counterparties in the Mediterranean
and extending east into Asia at 81% of Dated Brent.
Utilizing a $100 per barrel Brent oil price forecast and average price
realization of 81% of Brent for Patos-Marinza crude, the Company
expects to fully fund the 2014 capital program with funds generated
from operations, cash and available credit facilities.
With this capital program the Company expects to achieve 10% to 15%
annual growth in production from the 2013 average.
UPDATED CORPORATE PRESENTATION
For additional information on this operational update, please see the
December 2013 version of the Company's corporate presentation at www.bankerspetroleum.com.
Management of Bankers will host a conference call on December 12, 2013
at 6:30 am MST to discuss the 2014 Capital Budget. 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 http://www.bankerspetroleum.com or by entering the following URL into your web browser http://www.newswire.ca/en/webcast/detail/1277883/1409799.
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 December 26, 2013 by dialing 1-855-859- 2056 or
1-416-849-0833 and entering access code 23976676.
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.
For further information:
David French President and Chief Executive Officer (403) 513-6930
Doug Urch Executive VP, Finance and Chief Financial Officer (403) 513-2691
Laura Bechtel Investor Relations Analyst (403) 513-3428
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+44 0 207 523 8000
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Hugh Sanderson / David van Erp
+44 0 207 448 0200