BANKERS PETROLEUM ANNOUNCES 2011 FIRST QUARTER FINANCIAL AND OPERATIONAL RESULTS

Record Quarter of Production and Financial Results

CALGARY, May 13 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2011 first quarter Financial and operational results. The complete reporting package, consisting of Management's Discussion and Analysis along with Financial Statements and Notes, is posted on the Company's website www.bankerspetroleum.com and SEDAR: www.sedar.com.

Results at a Glance (US$000,
except as noted)(3)
    Three months ended
March 31
    Three months ended
December 31
                               
      2011     2010     Change     2010     Change
Oil revenue     72,736     35,149     107%     50,945     43%
Net operating income     39,834     15,639     155%     25,465     56%
Net income (loss)     11,219     (363)     32 x     4,630     142%
Funds generated from operations(1)     30,259     13,814     119%     23,292     30%
Capital expenditures     51,930     26,170     98%     37,367     39%
Average production (bopd)     11,894     8,282     44%     10,424     14%
Average price ($/barrel)     67.95     47.16     44%     53.12     28%
Netback ($/barrel)     37.22     20.98     77%     26.55     40%
                               
      March 31
2011
    March 31
2010
    Change     December 31
2010
    Change
Cash and deposits     82,854     67,712     22%     108,119     (23%)
Adjusted working capital(2)     111,382     70,626     58%     134,934     (17%)
Total assets     522,476     329,036     59%     465,598     12%
Bank loans     20,416     26,418     (23%)     25,829     (21%)
Shareholders' equity     371,355     226,882     64%     346,267     7%
                               
(1)      Includes $6.6 million cash premiums paid for financial commodity contracts.
(2)      Represents working capital net of current portion of long-term debt.
(3)      Effective January 1, 2011, and retroactive to January 1, 2010, the Company adopted International Financial Reporting Standards (IFRS). Previously, the Company prepared its Financial Statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP). The transition has not resulted in any material variation from prior periods. Full details on the transition adjustments are contained in the Notes to the Consolidated Interim Financial Statements.


Highlights for the quarter ended March 31, 2011 are:

  • Bankers achieved record production during the three months ended March 31, 2011. Production averaged 11,894 bopd, an increase of 44%, compared to the same period in 2010. Production at the end of March 31, 2011 exceeded 13,500 bopd.

  • Revenue increased 107% to $72.7 million ($67.95/bbl) in the first quarter of 2011 from $35.1 million ($47.16/bbl) during the first quarter of 2010.

  • Net operating income (netback) increased 155% to $39.8 million ($37.22/bbl) in the first quarter of 2011 from $15.6 million ($20.98/bbl) during the first quarter of 2010.

  • Funds generated from operations increased 119% to $30.3 million in the first quarter of 2011 from $13.8 million over the first quarter of 2010. Included in funds generated from operations are cash premiums paid of $6.6 million for financial commodity contracts in February 2011.

  • Capital expenditures for the first quarter of 2011 were $51.9 million and included drilling 16 wells, 29 reactivation and related infrastructure/expansion projects. During the comparable 2010 quarter, capital expenditures were $26.2 million.

  • The Company continues to maintain a strong balance sheet adjusted working capital of $111.4 million (including cash and cash equivalents totalling $82.9 million) and bank loans of $20.4 million. At December 31, 2010 the Company had adjusted working capital of $134.9 million and bank loans of $25.8 million. Adjusted working capital at March 31, 2010 was $70.6 million.

ANNUAL GENERAL MEETING
The Company's Annual General Meeting (AGM) will take place on May 24, 2011 at 3:00pm MDT (5:00pm EDT) at the Petroleum Club in Calgary, AB, Canada.

For additional information, please see an updated version of the Company's corporate presentation on www.bankerspetroleum.com.


BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Unaudited, expressed in thousands of US dollars)
                                 
ASSETS
                March 31
2011
      December 31
2010
      January 1
2010
Current assets                                
  Cash and cash equivalents              $ 81,354     $ 106,619       $ 59,495
  Short-term investments               -       -       7,275
  Restricted cash               1,500       1,500       1,500
  Accounts receivable               48,063       29,233       23,358
  Inventory               15,890       4,199       2,031
  Deposits and prepaid expenses               15,265       16,624       5,899
                162,072       158,175       99,558
Non-current assets                                
  Note receivable               -       -       2,749
  Deferred financing costs               13,589       13,980       15,824
  Financial commodity contracts               5,187       -       -
  Property, plant and equipment               341,628       293,443       187,924
Total assets             $ 522,476     $ 465,598     $ 306,055
                                 
LIABILITIES
Current liabilities                                
  Accounts payable and accrued liabilities             $ 50,690     $ 23,241       $ 19,505
  Current portion of long-term debt               18,565       4,014       4,639
                69,255       27,255       24,144
Non-current liabilities                                
  Long-term debt               1,851       21,815       23,446
  Decommissioning obligation               6,871       6,622       4,796
  Deferred tax liabilities               73,144       63,639       38,892
Total liabilities               151,121       119,331       91,278
                                 
SHAREHOLDERS' EQUITY
Share capital               314,456       309,379       206,058
Warrants               1,597       1,597       1,739
Contributed surplus               35,113       28,135       16,443
Accumulated other comprehensive income               7,908       6,094       -
Retained earnings (deficit)               12,281       1,062       (9,463)
                371,355       346,267       214,777
              $ 522,476     $ 465,598     $ 306,055



BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31
(Unaudited, expressed in thousands of US dollars, except per share amounts)
                                             
                        2011       2010
                                             
Revenues                       $       72,736       $       35,149
Royalties                             (13,755)             (7,190)
                              58,981             27,959
                                             
Operating expenses                               11,597             7,925
Sales and transportation expenses                               7,550             4,395
General and administrative expenses                               2,858             2,456
Depletion and depreciation                               8,265             4,384
Amortization of deferred financing costs                               734             683
Share-based payments                               4,645             3,704
Unrealized loss on financial commodity contracts                             1,401             -
                              37,050             23,547
                              21,931             4,412
                                             
Finance income                             307             727
Finance expense                             (1,514)             (753)
                              (1,207)             (26)
                                             
Income before income tax                             20,724             4,386
Deferred income tax expense                             (9,505)             (4,749)
Net income (loss) for the period                             11,219             (363)
                                             
Other comprehensive income                                            
  Currency translation adjustment                             1,814             1,444
Comprehensive income for the period                     $       13,033     $       1,081
                                             
Basic earnings (loss) per share                     $       0.046     $       (0.002)
                                             
Diluted earnings (loss) per share                     $       0.044     $       (0.002)




BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Unaudited, expressed in thousands of US dollars, except number of common shares)
            Number of
common
shares
      Share capital       Warrants       Contributed
surplus
      Accumulated
other
comprehensive
income
      Retained
earnings
(deficit)
      Total
Balance at January 1, 2010           228,272,165       $     206,058       $     1,739     $     16,443     $     -     $     (9,463)     $     214,777
                                                                                     
Share-based payments             -           -           -           6,608           -           -           6,608
Options exercised           1,035,222           2,759           -           (952)           -           -           1,807
Warrants exercised           1,033,334           2,724           (115)           -           -           -           2,609
Net loss for the period           -           -           -           -           -           (363)           (363)
Currency translation adjustment           -           -           -           -           1,444           -           1,444
Balance at March 31, 2010           230,340,721           211,541           1,624           22,099           1,444           (9,826)            226,882
                                                                                     
Issue of common shares           12,903,228           96,153           -           -           -           -           96,153
Share issue costs           -           (4,333)           -           -           -           -           (4,333)
Share-based payments             -           -           -           7,876           -           -           7,876
Options exercised           1,307,108           5,361           -           (1,840)           -           -           3,521
Warrants exercised           243,933           657           (27)           -           -           -           630
Net income for the period           -           -           -           -           -           10,888           10,888
Currency translation adjustment           -           -           -           -           4,650           -           4,650
Balance at December 31, 2010           244,794,990           309,379           1,597           28,135           6,094           1,062           346,267
                                                                                     
Share-based payments           -           -           -           8,925           -           -           8,925
Options exercised           1,963,444           5,077           -           (1,947)           -           -           3,130
Net income for the period           -           -           -           -           -           11,219           11,219
Currency translation adjustment           -           -           -           -           1,814           -           1,814
Balance at March 31, 2011           246,758,434      $     314,456     $     1,597     $     35,113     $     7,908     $     12,281     $     371,355



BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31
(Unaudited, expressed in thousands of US dollars)
                                   
              2011       2010
Cash provided by (used in):                                  
Operating activities                                  
  Net income (loss) for the period           $       11,219     $       (363)
  Depletion and depreciation                   8,265             4,384
  Amortization of deferred financing costs                   734             683
  Finance expenses (including accretion)                   1,514             753
  Interest paid                   (310)             (165)
  Foreign exchange (gain) loss                   (126)             69
  Deferred income tax expense                   9,505             4,749
  Share-based payments                   4,645             3,704
  Unrealized loss on financial commodity contracts                   1,401             -
  Cash premiums paid for financial commodity contracts                   (6,588)             -
                    30,259             13,814
Change in non-cash working capital                   (8,012)             (1,678)
                    22,247             12,136
Investing activities                                  
  Additions to property, plant and equipment                   (51,930)             (26,170)
  Change in non-cash working capital                   5,988             5,022
                    (45,942)             (21,148)
Financing activities                                  
  Issue of shares for cash                   3,130             4,416
  Short-term deposits                   -             (1,800)
  Financing costs                   (26)             (152)
  Decrease in long-term debt                   (5,413)             (1,667)
                    (2,309)             797
Foreign exchange gain on cash and cash equivalents                   739             857
Decrease in cash and cash equivalents                   (25,265)             (7,358)
Cash and cash equivalents, beginning of period                   106,619             59,495
Cash and cash equivalents, end of period           $       81,354     $       52,137


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; approval of the Addendum to the Plan of Development;  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.

Contingent resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Prospective resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations, by application of future development projects.

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 Abdel F. (Abby) Badwi, President & CEO 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 geologist (member of APEGGA) with over 40 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

Email: investorrelations@bankerspetroleum.com
Website: www.bankerspetroleum.com

AIM NOMAD:               
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

Organization Profile

Bankers Petroleum Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890