2nd Mar 2016 12:27
LONDON (Alliance News) - Bankers Petroleum Ltd, a Canada-based oil and gas exploration and production company, on Wednesday reported the results of its December 31 independent reserves evaluation, revealing that enhanced oil recovery reserve volumes doubled in the Patos-Marinza oilfield in Albania.
EOR reserve volumes in the Patos-Marinza oilfield increased to 4.6 million, 14.7 million, 21.1 million and 27.3 million barrels on a proved developed producing, proved, proved plus probable, and proved probable plus possible basis, respectively, the company said.
"The doubling of our booked Enhanced Oil Recovery barrels demonstrates the success of the EOR program, and our dedication to prioritize EOR as the most efficient dollars we can spend in this pricing environment," David French, president and chief executive officer, said.
"It also marks an inflection point in our finding and development costs, as the transition to EOR development will reduce our forward capital requirements to sustain and grow the business," French added.
"We have a deep inventory of future drilling locations and injector conversions, and even modest changes in oil price put us in a very enviable position of low cost operations and development," French said.
Proved reserves remained constant at 125 million barrels with after tax value, discounted at 10%, down 12% to USD648 million, the company said, equal to CAD3.42 per share. Proved plus probable reserves also remained "constant" at 202 million barrels with after tax value, discounted at 10%, down 21% to USD1.4 billion, representing CAD7.49 per share.
Bankers Petroleum said that reserves volume increases in the core area of the oilfield were due to "additional future development" in the Marinza formation due to horizontal drilling on reduced spacing of 100 metres and the addition of future EOR patterns.
Reserves volume decreases and overall valuation decreases were due to the "lower price forecast and resulting reduced development plan" in non-core areas, specifically in the Driza Formation in the southern region of the Patos-Marinza oilfield.
Company average production in 2015 was 19,384 barrels of oil equivalents per day for an annual total volume of 7.1 million barrels, equal to 6.0% of total proved reserves, Bankers Petroleum said.
Shares in Bankers Petroleum were untraded in London on Wednesday. The stock closed at 50.00 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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