Current Production Exceeds 16,000 barrels of oil per day
CALGARY, Jan. 9, 2012 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK, AIM: BNK) is pleased to announce the following
fourth quarter operational update.
Production and oil prices
Exit 2011 production was 15,535 barrels of oil per day ("bopd"), 9%
higher than the third quarter 2011 exit rate and 30% higher than the
2010 exit rate. With three new wells drilled in December 2011 and
placed on production in the first week of January, current production
is 16,048 bopd.
Average production for the fourth quarter was 13,833 bopd, representing
a 5% increase from 13,232 bopd in the third quarter.
Average oil production for 2011 was 13,051 bopd, 33% higher than 2010
production of 9,806 bopd.
Oil sales from the Patos-Marinza oilfield in Albania during the fourth
quarter averaged 13,399 bopd. Average oil sales for 2011 were 12,784
bopd, 33% higher than 2010 sales of 9,597 bopd. Crude oil inventory on
December 31st was 241,000 barrels, an increase of 40,000 barrels from September 30th.
The Patos-Marinza fourth quarter average oil price was approximately
US$71.67 per barrel (representing 66 per cent of the Brent oil price of
US$109.31 per barrel, as compared with the third quarter average oil
price of US$74.46 per barrel (66% of Brent oil). The average oil price
for 2011 was US$72.84 per barrel (66% of Brent oil), a 50% increase
from US$48.64 per barrel (61% of Brent oil) for 2010.
Drilling update and well reactivations
Twenty-six (26) wells have been drilled during the fourth quarter:
twenty-five (25) horizontal production wells and one (1) water disposal
well. All of the horizontal production wells have been completed and
are on production. Eighty-four (84) wells were drilled in 2011:
seventy-six (76) horizontal production wells, two (2) vertical
delineation wells, two (2) cyclic steam horizontal wells, and four (4)
water disposal wells.
Several step-out wells in the western extension of the field (Area 3)
were drilled in the fourth quarter. Six (6) of these wells are in the
Driza 1 formation with encouraging production rates ranging from 70 to
270 bopd. In addition, several step-out wells in the southern area of
the field (Area 2) were drilled with three (3) wells in the Upper and
Middle Gorani having good production rates in the range of 90 to 150
bopd. The new production using horizontal well completions in these
formations will contribute to additional development of recoverable
reserves in these areas of the field.
The fifth drilling rig is currently operating at Patos-Marinza and
drilling its third well in the field.
Reactivation and recompletion work continued in the fourth quarter with
five (5) new reactivations and five (5) recompletions, including
expansion into the northern part of the contract area targeting the
deeper Bubullima sandstone formation. The first well in this area (K-8)
was reactivated in December and initial production monitoring is
underway with good fluid recovery and early traces of oil. An
additional well will be reactivated in the Bubullima zone during the
first quarter with new drilling activity later in the year as part of
the Company's development plans for this formation and area of the
Thermal operations commenced at the southern Patos Cyclic Steam Pilot in
December 2011 with steam test injection into thermal horizontal well
5201. The steam generator was calibrated and tested at full capacity
with injection rates of 230 m3/d of cold water equivalent steam. The steam generator, well operating
and injection conditions are within forecasted parameters.
Currently, two offset wells have been taken over from the State oil
company ("Albpetrol") for remedial work and are being equipped to
monitor the adjacent temperature and pressure conditions during full
cycle operation of the Steam Pilot.
Full steam injection will resume in January and the first production
cycle on the well (5201) is projected to commence later in the first
quarter, with stabilized production results available in the second
quarter. The second thermal horizontal well (5202) will be steamed
subsequent to the injection cycle on the first well, followed by a
production cycle later in the year.
Exploration Block "F"
The first Block "F" exploration location has been selected and land
access is underway along with environmental permitting to commence
surface lease construction. This first well is expected to spud in the
first quarter of 2012.
The first phase of the crude oil sales pipeline, which connects the
Patos-Marinza oilfield to Bankers' storage and loading hub facility at
Fier is built and scheduled to commence operations in January.
Construction of the expanded central treatment facility is finished and
will also be operational in January, expanding Bankers' treating
capacity to handle 25,000 bopd.
The Seman River Bridge, in the northern area of the Patos-Marinza
oilfield, is complete and was open for traffic in December.
Water injection into well F-38 commenced in May and two offset wells F34
and F41 were placed on production in December. The Company intends to
expand the waterflood pilot project with an additional injector and
producers in the Ferme pool and expansion into the Ciflik and Arreza
pools later this year.
Environmental cleanup of former Albpetrol leases continued throughout
the fourth quarter. Results of the remediation trials have been
tabulated and Bankers completed the environmental remediation and
reclamation of 62 leases and 5 former pump stations as part of the
Sector III project.
Plans have been developed and budget funds allocated for 2012 to
continue with the cleanup of additional leases and remnant hydrocarbon
spill material from historic operations. The plans include expansion of
the sludge treatment facility and the introduction of a commercial high
temperature thermal desorption unit to treat hydrocarbon materials.
Updated Corporate Presentation
For additional information on this operational update, please see the
January 2012 version of the Company's corporate presentation at www.bankerspetroleum.com.
The Management of Bankers will host a conference call on January 9, 2012
at 6:45am MST to discuss this Operations Update. Following Management's
presentation, there will be a question and answer session for analysts
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/902171/962215. 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 January 23, 2012 by dialing 1-855-859-2056 or
1-416-849-0833 and entering access code 41364101.
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
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 engineer (member of
APEGGA) 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 and 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:
| Abby Badwi || || || || President and Chief Executive Officer || || || || (403) 513-2694 |
| Doug Urch || || || || Executive VP, Finance and Chief Financial Officer || || || || (403) 513-2691 |
| Mark Hodgson || || || || VP, Business Development || || || || (403) 513-2695 |
Canaccord Genuity Limited
Ryan Gaffney/ Henry Fitzgerald-O'Connor
+44 20 7050 6500
AIM JOINT BROKERS:
Canaccord Genuity Limited Macquarie Capital Advisors
Ryan Gaffney/ Henry Fitzgerald-O'Connor Ben Colegrave/Paul Connolly
+44 20 7050 6500 +44 20 3037 5639