Expanding Margins, Encouraging Initial Water and Polymer Flood Results
and 5-Year Development Outlook
CALGARY, June 9, 2014 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK, AIM: BNK) is pleased to announce cost reduction
initiatives, early stage water and polymer flood results, and the
outline of a 5-year development program. The Toronto Investor Day
presentation will be streamed live through webcast today, Monday, June
9th, 2014 beginning at 12:30 pm EDT. An additional presentation will be
made in London on June 11th at 8:00 am (BST).
Over the past year, Bankers has been focused on a strategy of delivering
consistent, reliable growth through our primary drilling program,
expanding our margins through operational improvements, and evaluating
the potential of water and polymer floods in the Patos-Marinza
oilfield. In today's Investor Day presentation, representatives of
Banker's management and technical teams will discuss performance in
each of these areas.
Drilling and Capital Costs
Over the past several years, the Company has made strong progress in
reducing drilling costs to approximately $1 million per horizontal well
with an average drill time of 12 days through improved well design and
drilling practices. This is a 30% reduction in costs from $1.3 million
per well and an average drilling time of 14 days in 2011.
The Company is focused on continued optimization of well design, as well
as further reduction of costs through improved contracts and supply
Looking forward, the Company is pursuing new initiatives including
drilling the first multi-lateral well in the heavier oil quality Gorani
reservoir in the third quarter of this year, and conducting lateral
drainage testing to further evaluate the optimal horizontal length for
improved well performance.
Expanding our Margins
In the first quarter of this year, the Company announced record netbacks
of $55.75 as a result of cost reduction initiatives underway in both
operating, sales and transportation costs.
Over the past year, the Company has reduced diluent costs by $3.59 per
barrel through optimizing its central treating process, and reducing
usage of diluent in workover fluids. Bankers will continue to pursue
ways to reduce diluent, as well as focus on developing production from
the Marinza and Bubullima reservoir zones which contain lighter oil.
The Company is also improving its energy costs through transition from
diesel generators to natural gas and electric power units in the field,
and the development of gas gathering infrastructure to harness
associated gas produced in conjunction with its heavy oil.
Ongoing analysis of workover trends, and both improved progressive
cavity pump design and artificial lift systems, have resulted in
significantly longer pump run times and well performance over the last
several quarters. In 2014, the Company expects to further reduce
workover costs through the addition of tubing rotators and continuous
Looking forward, Bankers will focus on reducing in-field trucking by
assessing the additional tie-in of over 60 percent of its transported
volumes. Three current flow-line projects are under way targeting a
large portion of this volume, with further infrastructure expansion
expected in 2015.
Water and Polymer Flood Program
In 2013, and through the first half of 2014, Bankers has implemented 3
water and 9 polymer flood patterns and continues to monitor early stage
results. The water flood patterns are in the Marinza (M0) and polymer flood patterns in the Lower Driza (D3, D4, and D5) reservoir sands within the main area of the Patos-Marinza oilfield.
Early Stage Results
Bankers is pleased to announce the following results of these initial
Performance to date from all patterns is exceeding the minimum
performance levels set by the Company with respect to economic
thresholds in offset producer response.
The Company is strongly encouraged by these results and will continue to
expand the water and polymer floods, testing additional areas of the
field and reservoir zones with 14 injector conversions projected in
2014 and increasing to 25 conversions in 2015.
While these results are exciting and could lead to incremental recovery
as well as reduced field declines in successful flood demonstration
areas, investors are cautioned that the response is still early stage.
5-Year Development Plan
Bankers is also pleased to share a five year development outlook based
on continued primary development through horizontal drilling, the
addition of further water and polymer flood patterns and the evaluation
of a potential thermal program.
Through continued execution of the horizontal drilling program, the
Company expects to deliver reliable annual production growth of 10 - 15
%, drilling between 150 - 170 wells per year and focusing on managing
costs to maximize netbacks.
Secondary expansion will continue into the balance of 2014 and 2015,
with pace of development in 2016 and beyond lead by performance
Patos-Marinza's initial results are inline with analogous fields
yielding incremental recovery. The Company looks forward to delineation
of these results in the coming years.
Data collection and evaluation continue for potential thermal recovery
to target the shallow and heavier areas of the Patos-Marinza oilfield.
Over the next two to three years, the Company plans to obtain core data
to evaluate the reservoir suitability, and develop a pilot test in an
area amenable to thermal techniques.
Investor Day Presentation Webcast Details
For those unable to attend today's Investor Day presentation, the live
audio webcast can be accessed through Bankers website at www.bankerspetroleum.com or by entering the following URL into your web browser, http://event.on24.com/r.htm?e=794785&s=1&k=7E3E45837B38B2568044F4DA048A5508.
The 2014 Investor Day presentation is available on the Company's website
London Investor Day
Bankers will be hosting another Investor Day presentation in London on
Wednesday, June 11th, 2014 at the May Fair Hotel. Institutional
investors and analysts that are interested in attending are asked to
register by contacting Laura Bechtel at firstname.lastname@example.org.
London Presentation Agenda
8:30 - 9:15 am (BST) Cost Initiatives
9:25 - 10:10 am (BST) Polymer and Water Flood Results
10:20 - 10:50 am (BST) 5-Year Development Outlook
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:
President and Chief Executive Officer
Executive VP, Finance and Chief Financial Officer
Investor Relations Analyst
Canaccord Genuity Limited
+44 0 207 523 8000
FirstEnergy Capital LLP
Hugh Sanderson / David van Erp
+44 0 207 448 0200