Bankers Petroleum Announces 2013 Capital Budget and Work Program

Fully Funded US$247 Million Capital Program in Albania

CALGARY, Dec. 10, 2012 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to announce its 2013 capital program of US$247 million, to be fully funded with funds generated from operations. This represents a record annual activity level and takes Bankers cumulative capital investment in Albania to over $1 billion. The budget has been approved by the Company's Board of Directors and submitted to the Albanian authorities for their approval.

The 2013 capital program will focus on major development activities at the Patos-Marinza oilfield  including production and reserves growth through new horizontal and vertical drilling, reactivation and workover of existing wells and implementation of water and polymer flood programs. The Company will also direct capital towards associated field infrastructure and progression of our thermal program.

The 2013 work plan will include expansion of the waterflood program and new drilling at the Kuçova oilfield as well as exploration drilling in Block F.

Abby Badwi, President & CEO commented, "Our 2013 capital budget is designed to deliver sustainable production growth and to implement the Company's long term objectives of increasing reserves through primary, secondary and tertiary recovery methods. We will constantly review our projects' economic returns and prevailing oil prices to allow for flexibility to expand or contract our capital programs to remain funded from our cash flow."


Drilling and Reactivation Capital

With five drilling rigs and a budget of $159 million, the Company intends to drill a total of 110 to 120 wells, primarily horizontal production wells, along with horizontal lateral re-drills, vertical delineation, core wells, and water-injection wells. Approximately 70% to 80% of drilling activities will focus on production growth and 20% to 30% of the wells will target new reserves through delineation of zones and areas, both within and outside the field where no reserves have been booked to date. Reactivation and workover of old vertical wells will continue and the $7 million costs associated with these activities are included in the drilling budget.

Water and Polymer Flood Program

The 2013 budget includes $10 million for implementation of three waterflood and one polymer flood patterns, which will be expanded in 2014 and beyond to offset field declines and increase recovery of the oil in place.

Facilities and Infrastructure

There will be $68 million in capital allocated to facilities and infrastructure activities, including:

  • construction of additional satellite treatment facilities;
  • planning for our second leg of the crude oil pipeline, 35 kilometre route that will connect the central Fier hub loading facility to the Vlore Port export terminal;
  • expanded remediation program targeting over 200 old vertical wells;
  • expansion of water disposal capabilities with two to three new water disposal wells; and
  • continuation of environmental remediation and social initiatives.

Thermal Pilot Project

Coring programs and simulation studies will continue throughout the year to determine the best location and zone for the next thermal pilot, which could lead to future development of the field's large contingent and prospective resources. Cost estimates for these activities are included in the 2013 capital program.

Patos-Marinza Field Study and Production Optimization

The Company recently expanded the scope of its current master service agreement with Weatherford International, one of the world's largest oilfield services provider, to provide integrated solutions for its various activities at Patos-Marinza including but not limited to, artificial lift optimization, well construction design and in-depth reservoir geo-mechanics review and modeling.

Weatherford's technical experts will be assigned to the project and, in cooperation with Bankers' technical team, are expected to enhance our operational practices and determine the best technology required to improve oil recovery.

The multi-faceted study will be completed in three phases over several quarters. The first phase focusing on production optimization recommendations will be available for implementation during the first quarter of 2013.

Cost estimates for this project are included in the 2013 capital program.


An additional $7 million will be directed towards the Kuçova oilfield with focus on expanding the waterflood pilot project, drilling three new wells and, developing localized infrastructure including gathering lines to a centralized oil treating facility.


One exploration well is planned for 2013 in Block F and comprises the majority of the $3 million capital expenditure.


Utilizing a $103 Brent oil price forecast ($105 for Q1/Q2 and $100 for Q3/Q4) and average price realization of 80% of Brent for Patos-Marinza crude, Bankers expects to fully fund the 2013 capital program with funds generated from operations.


With this capital program Bankers expects to achieve 10% to 15% annual growth from its 2012 average production while continuing to focus capital on reserves growth initiatives.


FirstEnergy Capital LLP has been appointed to act as the Company's Broker for the London AIM Exchange effective January 1, 2013. FirstEnergy is a leading energy-focused bank, providing full-service energy investment banking operations.

Canaccord Genuity will continue to act exclusively as our Nominated Advisor (NOMAD) to Bankers Petroleum Ltd.


For additional information on this operational update, please see the December 2012 version of the Company's corporate presentation at


Management of Bankers will host a conference call on December 10, 2012 at 7:00 am MST to discuss the 2013 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 or by entering the following URL into your web browser 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 24, 2012 by dialing 1-855-859- 2056 or 1-416-849-0833 and entering access code 78994621.

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 operations.

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

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 COO 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 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
Henry Fitzgerald-O'Connor
+44 20 7023 8000

AIM Joint Brokers
Canaccord Genuity Limited
Henry Fitzgerald-O'Connor
+44 20 7023 8000

Macquarie Capital Advisors
Jeffrey Auld
+44 20 3037 5639

Profil de l'entreprise

Bankers Petroleum Ltd.

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