SYS-CON MEDIA Authors: Greg Ness, Elizabeth White, Glenn Rossman, Pat Romanski, Cynthia Dunlop

News Feed Item

Bankers Petroleum announces 2013 year-end reserves

232 Million Barrels of Proved plus Probable (2P) Reserves; NPV of US$2.24 billion
Average Production First Quarter to Date 19,700 bopd

CALGARY, Feb. 21, 2014 /PRNewswire/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to provide the results of its December 31, 2013, independent reserves evaluation. Evaluations were conducted by RPS Energy Canada Ltd. (RPS) for the Patos-Marinza oilfield, Albania, and by DeGolyer and McNaughton Canada Ltd. (D&M) for the Kuçova oilfield, Albania; and were prepared in accordance with Canadian National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

Total Company Reserves Summary

Gross Oil Reserves - Using Forecast Prices (Million barrels)

                 
  2013   2012    
  Patos-
Marinza
Kuçova Total
Albania
  Patos-
Marinza
Kuçova Total
Albania
  %
Proved                  
  Developed Producing 40.3 - 40.3   25.4 - 25.4   59
  Developed Non-Producing 0.7 - 0.7   3.0 - 3.0   -
  Undeveloped 102.3 3.4 105.7   107.6 3.4 111.0   -5
Total Proved (1P) 143.3 3.4 146.7   136.0 3.4 139.4   5
Probable 77.0 8.5 85.5   77.8 8.5 86.3   -1
Total Proved Plus Probable (2P) 220.3 11.9 232.2   213.8 11.9 225.7   3
Possible 104.0 21.4 125.4   110.8 21.5 132.3   -5
Total Proved, Probable &
Possible (3P)
324.3 33.3 357.6   324.6 33.4 358.0   0

Patos-Marinza Contingent and Prospective Resources (MMbbls - P50)

       
  2013 2012 %
Contingent Resource 505 534 -5
Prospective Resource 259 254 2
Total Resources 764 788 -3

Highlights

  • 1P Reserves after tax value discounted at 10% increased 27% to US$1.2 billion (representing CAD$5.27 per share);
  • 2P Reserves after tax value discounted at 10% increased 20% to US$2.2 billion (representing CAD$9.72 per share);
  • Main drivers for the increased valuation are operational improvements, an accelerated drilling program and lower future development costs. Operating costs per unit have decreased with reduction in diluent usage, treating system improvements, reduced energy consumption, and improved pump performance;
  • 2013 Company average production was 18,169 bopd for an annual total volume of 6.6 million barrels (4.5% of total proved reserves);
  • Reserves Life Index for 1P and 2P is 22 years and 35 years respectively;

Net Present Value at 10% - After Tax Using Forecast Prices (US$ millions)

                 
  2013   2012   %
  Patos-
Marinza
Kuçova Total
Albania
  Patos-
Marinza
Kuçova Total
Albania
   
Proved                  
  Developed Producing 568 - 568   372 - 372   55
  Developed Non-Producing 11 - 11   44 - 44   -
  Undeveloped 614 23 637   517 26 543   22
Total Proved 1,193 23 1,216   932 26 958   27
Probable 926 98 1,024   793 115 908   13
Total Proved Plus Probable 2,119 121 2,240   1,724 141 1,865   20
Possible 1,003 296 1,299   860 354 1,214   7
Total Proved, Probable &
Possible
3,122 417 3,539   2,584 495 3,079   15

       
Reserves Value
10% Discounted, After Tax
CAD$/Share   US$/bbl
1P reserves $5.27   $8.49
2P reserves $9.72   $9.77
3P reserves $15.36   $9.98

Basic shares outstanding of as of December 31, 2013, were approximately 256 million (281 million diluted).

Values are based on RPS (Patos-Marinza) and D&M (Kuçova) January 1, 2014, price forecast tables summarized below:

Reserve Auditor Price Decks - Dated Brent

   
BRENT Oil Price Forecast US$/bbl  
Year RPS D&M
2014 $105.20 $106.00
2015 $100.60 $101.80
2016 $95.80 $101.64
2017 $95.50 $101.51
2018 $97.40 $101.42
2019 $99.40 $101.58
2020 $101.40 $103.61
2021 $103.40 $105.68
2022 $105.40 $107.79
2023 $107.60 $109.95
2024 $109.70 $112.15
2025 +2.0% Thereafter +2.0% Thereafter

Patos-Marinza Crude Pricing

The average sales price for export sales is approximately 81% of Brent (an increase of 2% over the 2013 average realized pricing of 79% of Brent). The average realized sales price the Company is receiving for crude oil from the Patos-Marinza and Kuçova oilfields is at a discount to Brent oil.

Albanian Fiscal Changes

Pursuant to the 2014 Albanian fiscal changes, these reserve reports are based on the assumption that the Company and Government of Albania will reach agreement on adequate offsets in recognition of the economic stabilization provisions of the hydrocarbon agreements and that the previously exempted value added tax will be fully reimbursed in a timely manner.  Precedent for such an offset arrangement was established during the 2008 Royalty Tax implementation.

Finding and Development Costs (F&D)

In the Patos-Marinza 2P development case, the future horizontal well count has decreased from 1,085 to 995. The average cost per well is $1.2 million.

Total future undiscounted capital costs for Patos-Marinza and Kuçova are projected to be US$2.2 billion, US$2.3 billion and US$2.5 billion on a 1P, 2P and 3P basis, respectively. This represents the following F&D costs, calculated as total future development capital divided by recoverable reserves excluding currently developed PDP and PDNP reserves:

     
  2013 2012
F&D Costs US$/bbl US$/bbl
1P reserves $20.45 $20.90
2P reserves $12.08 $12.27
3P reserves $7.85 $8.08

Oil Initially in Place

In Patos-Marinza, the Oil Initially in Place ("OIIP") volumes in the reserves area remain at 2.4 billion barrels and the OIIP outside the reserves area remains at 2.7 billion barrels in 2013.

The Kuçova OIIP resource estimate remains at 297 million barrels.

David French, President and CEO commented "The Company is very pleased to announce an increase in our reserves on the back of a year of record production in the field. The 2013 reserve report reflects our strategy of engineering momentum through drilling efficient, predictable horizontal wells and enhancing the operating margin of every barrel we produce.  These new reserves reflect a 20% increase in the net present value of our 2P reserve base and reinforce the strength of our base business - optimizing the performance of this world class heavy-oil asset."

Operational Update

Average production for the first quarter to date was 19,700 bopd; this rate is 2% higher than the fourth quarter average production of 19,303 bopd.

The sixth drilling rig is now in country undergoing final inspection. It will commence drilling in the first quarter of 2014.

Further details, including the February 2014 Corporate Presentation, are available on the Company's website www.bankerspetroleum.com.

Conference Call

Bankers' Management will host a conference call on February 21, 2014 at 6:30 am MST to discuss this reserves report. 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 www.bankerspetroleum.com or by entering the following URL into your web browser http://www.newswire.ca/en/webcast/detail/1301697/1436315.

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 March 07, 2014 by dialing 1-855-859-2056 or 1-416-849-0833 and entering access code 89045312.

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 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 Suneel Gupta, Executive Vice President and Chief Operating Officer 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 APEGA) 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, 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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, will examine three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and...
When an enterprise builds a hybrid IaaS cloud connecting its data center to one or more public clouds, security is often a major topic along with the other challenges involved. Security is closely intertwined with the networking choices made for the hybrid cloud. Traditional networking approaches for building a hybrid cloud try to kludge together the enterprise infrastructure with the public clou...
Internet of @ThingsExpo Silicon Valley announced on Thursday its first 12 all-star speakers and sessions for its upcoming event, which will take place November 4-6, 2014, at the Santa Clara Convention Center in California. @ThingsExpo, the first and largest IoT event in the world, debuted at the Javits Center in New York City in June 10-12, 2014 with over 6,000 delegates attending the conference. ...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at Internet of @ThingsExpo, Jesse Shiah, CEO / ...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validati...
SYS-CON Events announced today that TeleStax, the main sponsor of Mobicents, will exhibit at Internet of @ThingsExpo, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. TeleStax provides Open Source Communications software and services that facilitate the shift from legacy SS7 based IN networks to IP based LTE and IMS networks hosted on private (...
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a pr...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutio...
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and ca...
SYS-CON Events announced today that Stratogent will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Stratogent is a custom managed services organization based in San Mateo, California. We design, implement, and support mission critical infrastructure 24x7 on premises, in datacenters and in t...