Bankers Petroleum achieves record production of 7,230 bopd in the fourth
quarter 2009
Exit Production rate exceeds 8,100 bopd
Production and Oil Price
Fourth quarter production averaged 7,230 bopd from the Patos Marinza oil field in
The Patos Marinza fourth quarter average oil price was US$45.10 per barrel representing 61% of the Brent oil price, compared to third quarter's average oil price of US$40.71 per barrel (60% of Brent).
Drilling Update
Five (5) horizontal wells have been drilled and completed during the quarter; four (4) of these wells are on production, and the fifth well is expected to be placed on production next week. Production rates from the four oil wells vary between 120 to 280 bopd. The average production from all nine (9) horizontal wells currently on production is 130 bopd, with the average from the last four wells at 170 bopd.
The Simmons' rig is currently drilling the 12th horizontal well in the field. The second drilling rig provided by Crosco Integrated Drilling & Well Services Co., Ltd., with a capacity to reach 3,000 meters total depth, is now on location at the Patos Marinza field and is expected to spud its first well in January. The Company expects to drill 52 horizontal and four (4) vertical wells this year as part of its US$152 million 2010 capital program. Bankers expects to fund the capital program from funds generated from operations, existing cash resources and from its unutilized US$110 million credit facilities.
Well Re-activations and Re-completions
Ten (10) wells were re-activated in the quarter following takeover from the state oil company and reconfigured with progressing cavity pumping systems. Twenty (20) wells from Bankers' inventory were returned to production following well servicing work including eight (8) re-completions to new oil producing horizons and four (4) re-perforations in existing oil zones to improve inflow performance. Several wells were worked over and returned to production as part of the water control initiative and other wells tested and re-configured as part of the water disposal expansion.
Marketing Update
The Company completed two new contracts for its crude oil export arrangements with BP Oil International Ltd., UK, and Vitol S.A.,
Bankers has initiated the process to start construction of an additional 13,000 Metric tonnes (80,000 barrels) of storage capacity at the Le Petrolifera Italo Albanese (PIA) Terminal in Vlore. Tank construction is expected to be completed by
Liquidity
At
Bankers' January Corporate Presentation has now been updated on its website www.bankerspetroleum.com
Conference Call
The Management of Bankers will host a conference call on
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/viewEvent.cgi?eventID=2929960
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
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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
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: [email protected], Website: www.bankerspetroleum.com; AIM NOMAD: Canaccord Adams Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050 6500; AIM JOINT BROKERS: Canaccord Adams Limited, Ryan Gaffney, Henry Fitzgerald-O'Connor, +44 20 7050 6500; Macquarie Capital Advisors, Paul Connolly, Ben Colegrave, +44 (0) 20 3037 2000
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