Bankers Petroleum Announces First Quarter Financial and Operational Results

Current production exceeds 10,000 bopd

CALGARY, May 14 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to provide its first quarter 2010 Financial and Operational Results, together with its Management's Discussion and Analysis. 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.

Abby Badwi, President and Chief Executive Officer: "We are very pleased with the results. 10,000 bopd is a significant milestone in the growth of the Company. With the addition of a second drilling rig in January, the Company doubled its capacity to drill horizontal wells and increase production significantly over the quarter as a result."

    
    -------------------------------------------------------------------------
                                         Q1 - 2010    Q4 - 2009    Q1 - 2009
    -------------------------------------------------------------------------
    Production (bopd)                        8,282        5,864        7,234
    -------------------------------------------------------------------------
    Brent Oil Price $/bbl                    76.36        74.53        44.40
    -------------------------------------------------------------------------
    Patos-Marinza Oil Price $/bbl            47.16        45.10        24.73
    -------------------------------------------------------------------------
    Operating Costs $/bbl                    10.63        11.18        10.44
    -------------------------------------------------------------------------
    Transportation $/bbl                      5.90         5.56         2.70
    -------------------------------------------------------------------------
    Royalties $/bbl                           9.65         9.35         6.61
    -------------------------------------------------------------------------
    Netback $/bbl                            20.98        19.01         4.98
    -------------------------------------------------------------------------
    

HIGHLIGHTS

    
        -  Oil revenue increased 17% from $30.0 million during the previous
           quarter to $35.1 million in the first quarter of 2010 as a result
           of increased production and more favourable oil prices. Sales were
           $13.1 million for the first quarter of 2009.

        -  Production at the end of March 31, 2010 was approximately 9,500
           bopd, averaging 8,282 bopd over the first quarter, an increase of
           41% compared to the first quarter 2009 average. Current production
           is in excess of 10,000 bopd. The Company's netback (revenue less
           royalties, operating, sales and transportation expenses) increased
           10% to $20.98/bbl (44% of the average price) compared to
           $19.01/bbl (42% of the average price) in the fourth quarter of
           2009. The netback for the first quarter of 2009 was $4.98/bbl (20%
           of the average price). The changes in netback were primarily due
           to more favourable average prices received from export sales and
           the fluctuation in commodity prices.

        -  Funds generated from operations increased to $13.8 million in the
           first quarter of 2010 from $10.8 million in the fourth quarter of
           2009.

        -  Capital expenditures were $26.7 million during the quarter, an
           increase of 55% from the previous quarter spending of $17.2
           million, compared to $2.8 million of expenditures in the first
           quarter of 2009.

        -  Operating expenditures decreased to $10.63 per barrel during the
           quarter from $11.18 per barrel in the previous quarter, primarily
           due to increased production and efficiencies.

        -  Liquidity as of March 31, 2010 saw the company in a position of
           financial strength, with working capital of $66.0 million and cash
           of $62.7 million. An additional $15 million was received in April
           and May 2010. The Company had also drawn $26.4 million from its
           $139.6 million in available credit facilities.

                                                  Three months ended
                                         ------------------------------------
                                          March 31     March 31  December 31
    Results at a Glance (US$000s)             2010         2009         2009
    -------------------------------------------------------------------------
    Oil revenue                             35,149       13,052       30,014
    Net operating income                    15,639        2,628       12,650
    Net income (loss)                          470       (2,492)       2,313
    Funds generated from operations         13,819        1,265       10,788
    Capital expenditures                    26,700        2,835       17,259


                                          March 31     March 31  December 31
                                              2010         2009         2009
                                         ------------------------------------
    Cash and deposits                       62,712       14,048       68,270
    Working capital (deficiency)            65,987      (10,166)      75,414
    Total assets                           330,371      210,674      304,820
    Bank loans                              26,418       26,948       28,085
    Shareholders' equity                   225,548      123,622      213,960
    

OUTLOOK

Throughout the remainder of 2010, the Company will remain focused on achieving its priorities and implementing its capital programs in Albania:

    
        -  In January 2010, a second drilling rig commenced drilling in the
           Patos-Marinza oilfield and a third rig has now been contracted to
           start drilling in July 2010. The Company plans to drill a total of
           52 horizontal and 5 vertical wells in 2010. Additionally, the
           Company plans to drill up to 3 vertical wells in Block F in 2010.

        -  With the current 10,000 bopd production level and expected
           production from the remaining horizontal drilling program, Bankers
           projected 2010 year-end production target is 15,000 bopd.

        -  Construction of an additional 80,000 barrels of storage capacity
           at the Vlore export terminal has commenced and is expected to be
           ready by year-end. To improve its "off-take" capacity, Bankers has
           initiated a pipeline project that will be implemented in two
           phases. Phase one, a 14 kilometre oil pipeline connecting the
           oilfield by rail to the export terminal, is underway and is
           expected to supplement current truck transport capacity of 15,000
           bopd with an additional 9,500 bopd through rail transport by early
           2011. Phase two, a 30 kilometre, 70,000 bopd pipeline connecting
           the oilfield to the export terminal, is planned for construction
           starting in 2011.

        -  The full collection in April of the $11.8 million outstanding
           payments owing from the Albanian refineries operated by Albanian
           Refining & Marketing of Oil Sh.A ("ARMO") has resulted in Bankers
           resuming oil sales into the domestic market at an equivalent-
           to-export price.

        -  The 2009 year-end independent assessment of the 1.2 billion
           barrels of Contingent and Prospective resources at Patos-Marinza
           validates the Company's plans for a thermal pilot proposed for the
           2010 capital program. Success of such initiatives may lead to the
           conversion of significant volumes of these resources to
           recoverable reserves and the subsequent implementation of a
           commercial field expansion in 2012 and beyond. A waterflood
           program is also planned for the Kuçova oilfield in 2010.

        -  Bankers expects to fund its $152 million 2010 capital program
           using funds generated from operations, existing cash resources and
           a portion of its unutilized $110 million credit facilities.

        -  The second quarter 2010 operations update is expected to be
           released on July 8. The Financial and Operating results for Q2/10
           and Q3/10 will be released on August 13, 2010 and November 12,
           2010, respectively.
    

ANNUAL GENERAL MEETING

The Company's Annual General Meeting (AGM) will take place on May 26, 2010 at 3:00pm MDT (5:00pm EDT) at the Hotel Arts in Calgary, AB, Canada. The AGM will include a general corporate update and will be available via webcast at:

http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3042380

Bankers updated Corporate Presentation is now available at www.bankerspetroleum.com

    
                           BANKERS PETROLEUM LTD.
                         CONSOLIDATED BALANCE SHEETS
              (Unaudited, expressed in thousands of US dollars)
    -------------------------------------------------------------------------

                                   ASSETS

                                                       March 31  December 31
                                                           2010         2009
                                                   --------------------------
    Current assets
      Cash and cash equivalents                     $    52,137  $    59,495
      Short-term deposits                                 9,075        7,275
      Restricted cash                                     1,500        1,500
      Accounts receivable                                25,295       23,358
      Inventory                                           2,767        2,031
      Deposits and prepaid expenses                       6,916        5,899
                                                   --------------------------
                                                         97,690       99,558

    Note receivable                                       2,749        2,749

    Deferred financing costs                             13,853       14,383

    Property, plant and equipment                       216,079      188,130
                                                   --------------------------
                                                    $   330,371  $   304,820
                                                   --------------------------
                                                   --------------------------

                                 LIABILITIES

    Current liabilities
      Accounts payable and accrued liabilities      $    27,064  $    19,505
      Current portion of long-term debt                   4,639        4,639
                                                   --------------------------
                                                         31,703       24,144

    Long-term debt                                       21,779       23,446

    Asset retirement obligations                          4,275        3,856

    Future income tax liability                          47,066       39,414

                             SHAREHOLDERS' EQUITY

    Share capital                                       211,541      206,058
    Warrants                                              1,624        1,739
    Contributed surplus                                  22,562       16,812
    Deficit                                             (10,179)     (10,649)
                                                   --------------------------
                                                        225,548      213,960
                                                   --------------------------
                                                    $   330,371  $   304,820
                                                   --------------------------
                                                   --------------------------



                           BANKERS PETROLEUM LTD.
      CONSOLIDATED STATEMENT OF OPERATIONS, COMPREHENSIVE INCOME (LOSS)
                                 AND DEFICIT
                     FOR THE THREE MONTHS ENDED MARCH 31
              (Unaudited, expressed in thousands of US dollars,
                          except per share amounts)
    -------------------------------------------------------------------------

                                                           2010         2009
                                                   --------------------------
    Revenue
      Oil revenue                                   $    35,149  $    13,052
      Royalties                                          (7,190)      (3,486)
      Interest                                              149          257
                                                   --------------------------
                                                         28,108        9,823
                                                   --------------------------
    Expenses
      Operating                                           7,925        5,512
      Sales and transportation                            4,395        1,426
      General and administrative                          1,926        1,204
      Interest and bank charges                             311          307
      Interest on long-term debt                            379          170
      Foreign exchange (gain) loss                       (1,504)         253
      Stock-based compensation                            3,798          562
      Amortization of deferred financing costs              683            -
      Depletion, depreciation and accretion               4,975        4,010
                                                   --------------------------
                                                         22,888       13,444
                                                   --------------------------
    Income (loss) before income tax                       5,220       (3,621)
    Future income tax (expense) recovery                 (4,750)       1,129
                                                   --------------------------
    Net income (loss) and comprehensive
     income (loss) for the period                           470       (2,492)
    Deficit, beginning of period                        (10,649)     (10,499)
                                                   --------------------------
    Deficit, end of period                          $   (10,179) $   (12,991)
                                                   --------------------------
                                                   --------------------------

    Basic earnings (loss) per share                 $     0.002  $    (0.014)
                                                   --------------------------
                                                   --------------------------

    Diluted earnings (loss) per share               $     0.002  $    (0.014)
                                                   --------------------------
                                                   --------------------------



                           BANKERS PETROLEUM LTD.
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                     FOR THE THREE MONTHS ENDED MARCH 31
              (Unaudited, expressed in thousands of US dollars)
    -------------------------------------------------------------------------

                                                           2010         2009
                                                   --------------------------
    Cash provided by (used in):
    Operating activities
      Net income (loss) for the period              $       470  $    (2,492)
    Items not involving cash:
      Depletion, depreciation and accretion               4,975        4,010
      Amortization of deferred financing costs              683            -
      Future income tax expense (recovery)                4,750       (1,129)
      Stock-based compensation                            3,798          562
      Unrealized foreign exchange (gain) loss              (857)         314
                                                   --------------------------
                                                         13,819        1,265

    Change in non-cash working capital                   (1,153)      (2,249)
                                                   --------------------------
                                                         12,666         (984)
    Investing activities
      Additions to property, plant and equipment        (26,700)      (2,835)
      Change in non-cash working capital                  5,022         (791)
                                                   --------------------------
                                                        (21,678)      (3,626)
                                                   --------------------------
    Financing activities
      Issue of shares for cash                            4,416           42
      Short-term deposits                                (1,800)       1,000
      Financing costs                                      (152)           -
      Decrease in long-term debt                         (1,667)      (1,177)
                                                   --------------------------
                                                            797         (135)
                                                   --------------------------
    Foreign exchange gain (loss) on cash and
     cash equivalents                                       857         (314)
                                                   --------------------------
    Decrease in cash and cash equivalents                (7,358)      (5,059)
    Cash and cash equivalents, beginning of period       59,495       15,607
                                                   --------------------------
    Cash and cash equivalents, end of period        $    52,137  $    10,548
                                                   --------------------------
                                                   --------------------------
    

Bankers Petroleum Ltd is a Canadian oil company with assets and operations in Albania. The Company operates the Patos-Marinza oilfield, the largest onshore field in Europe. Led by a team of experienced heavy oil specialists, the Company strives to maximize shareholder value through continual growth in production and reserves from this known oil accumulation.

SOURCE Bankers Petroleum Ltd.

For further information: 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, Email: investorrelations@bankerspetroleum.com, Website: www.bankerspetroleum.com; AIM NOMAD: (Following a change of name, the Company's Nomad is now known as Canaccord Genuity Limited) Canaccord Genuity Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050 6500; AIM JOINT BROKERS: Canaccord Genuity Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050 6500; Macquarie Capital Advisors, Ben Colegrave, Paul Connolly, +44 20 3037 5639

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