Production, Operational and Corporate Updates Provided
CALGARY, July 21 /CNW/ - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is
pleased to announce the following production, operational and corporate
Second quarter production averaged 5,822 bopd from the Patos Marinza oil
field in Albania. Daily production increased by 12% over first quarter
production of 5,218 bopd, with quarterly exit production of 5,867 bopd. With
these results, the Company is well on track to meet its production target of
7,000 bopd by the end of this year. 42 re-activation operations of existing
wells were completed during the quarter.
On June 21, Bankers commenced drilling operations in the field with the
spudding of the first vertical infill well. The well has been drilled and
cased to a total depth of 1,343 metres. As the first of four wells to be
drilled off a drilling pad, the well was programmed to test the potential of
multiple Gorani and Driza sandstone formations within the first of numerous
undrilled spacing units in the field that the Company interprets as being
Log analysis indicates that eight individual sandstone units, ranging
from 3 to 18 metres of net pay, are hydrocarbon bearing with combined net pay
of 39 metres. Six of the eight zones were evaluated for reservoir pressure:
data confirms that the zones tested were porous and permeable reservoir
quality sandstones, and that five of the six zones were at or near virgin
reservoir pressure with the sixth interval demonstrating an approximate 50
percent pressure depletion. These positive results confirm the Company's
drainage model and support its plans to drill an additional 110 vertical and
horizontal wells within the field over the next three years.
The second well on the pad reached total depth of 1,390 metres and is
currently being prepared for logging operations. It is anticipated that it
will take three more weeks to finish drilling the remaining two wells on the
pad, following which completion operations will commence and the wells will be
placed on production. The second and third pads have been built and are ready
to drill an additional 10 wells in 2008.
Technical and commercial evaluation for a second drilling rig capable of
drilling horizontal wells and several service rigs tenders are complete;
agreements with the winning contractors will be finalized in the next few
weeks. Bankers anticipates having the rigs available for drilling and workover
operations commencing in October 2008.
Patos Marinza Oil Price & Marketing
The second quarter average oil price was $64.47 per barrel (54% of the
Brent oil price), 24% higher than the first quarter average oil price of
$51.96 per barrel. The average oil price for June 2008 was $70.00 per barrel
(53% of Brent).
Bankers is finalizing arrangements with the developers of the Port of
Vlore oil export terminal for the construction of a 13,000 cubic metre
Company-dedicated oil tank farm and expansion of the terminal. The
availability of this storage facility will improve the Company's export
operations and allow for larger oil liftings when the terminal is ready to
receive larger vessels next year.
Several meetings with the successful bidders of the recently announced
privatization of ARMO, the Albanian refinery, have taken place. The objective
of these meetings is to extend the Company's current oil pricing agreement
beyond its current term of July 2009 and develop a pricing formula that will
provide future sales price for Patos Marinza oil that is competitive with
similar crudes sold in European markets. Based on discussions to date, the
Company is confident that it will reach an acceptable agreement with ARMO that
meets the financial and operational objectives for both firms.
Equity & Liquidity
Approximately 15.0 million options and 4.3 million warrants were
exercised during the second quarter, generating proceeds of approximately
$13.0 million. Total cash on deposit at the end of the second quarter, was
approximately $42.5 million. The Company expects that its strong working
capital position, future cash flow from operations and available credit
facilities are more than sufficient to fund the previously announced
three-year Albanian capital expenditure program, including plans for the
recently acquired Kucova field.
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 oil field and has a 100% interest in the Kucova oil field. Bankers'
shares are traded on the Toronto Stock Exchange and the AIM Market in London,
England under the stock symbol BNK.
For further information:
For further information: Abby Badwi, Chief Executive Officer, (403)
513-2694; Doug Urch, VP, Finance and Chief Financial Officer, (403) 513-2691;
Susan J. Soprovich, VP, Investor Relations and Corporate Governance, (403)
513-2681; Email: email@example.com, 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;
Tristone Capital Ltd., Nick Morgan, +44 20 7355 5800