15th Jul 2009 07:00
Bankers Petroleum Provides operational and corporate update
First Oil Shipment from New Port Terminal
CALGARY, July 14 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") is pleased to announce the following operational and corporate updates.
New Vlore Port Export Terminal
Bankers' inaugural oil export sales shipment out of the Petrolifera Italo Albanese Terminal ("PIA Terminal") in the new port of Vlore, Albania was completed on July 13, 2009. The export operations went efficiently and three additional export cargos are scheduled for the month of July and four cargos in August.
Bankers' 13,000 cubic meter storage capacity at the PIA Terminal will facilitate faster and larger oil shipments, ensure safer transport and offloading operations and can lead to the ability to realize higher oil sales prices.
Production and Oil Price
Second quarter production averaged 6,385 bopd from the Patos Marinza oil field in Albania compared to first quarter production of 5,864 bopd. The Patos Marinza average oil price for the second quarter was $35.11 per barrel, representing 55% of the Brent oil price, as compared to the first quarter average price of $24.73 per barrel (56% of Brent oil price). The Company realized in excess of 60% of the Brent oil price in June for some exports as a result of narrowing light and heavy oil differentials.
Drilling Update
Drilling on the second horizontal well No. 5014 in the Patos Marinza field commenced on July 8th and is scheduled to reach total measured depth of 2,000 meters with 500 to 600 meters of lateral section by the end of this month. The first horizontal well No. 5013, drilled in December 2008, is currently producing at a rate of 170 bopd and has produced in excess of 26,000 barrels since starting production in January 2009. Fluid levels in the well remain high. Nine additional horizontal wells are planned for the remainder of 2009 and Bankers exit production target is 8,000 bopd.
IFC / EBRD Warrants
The Company is also pleased to announce that the International Finance Corporation ("IFC", a member of the World Bank Group) has exercised its entire warrant holdings of 8.0 million warrants, issued on May 8, 2009 and priced at CDN$1.50/share, generating proceeds of CDN$12.0 million. We await a decision from the European Bank for Reconstruction and Development ("EBRD") on the exercise of their equal number of warrants prior to expiry on July 23rd, 2009. The warrants were granted to both institutions as part of the previously announced US$110 million credit facility. Application has been made to admit the 8.0 million common shares issued upon the IFC warrant exercise to AIM and admission is expected to be effective on July 20, 2009.
Bankers is not aware of any intention by IFC to sell any of the 8.0 million shares received on exercise of the warrants. IFC is a global investor and advisor committed to promoting sustainable projects in developing member countries that are economically beneficial, financially and commercially sound, and environmentally and socially sustainable.
With Brent oil prices now above $55, the Company expects to have access to this credit facility as soon as the remaining outstanding standard conditions precedent, including security sharing agreements between IFC, EBRD and Raiffeisen Bank, are satisfied.
Liquidity
Total cash on deposit at the end of June 2009 was approximately US$41 million; this amount does not include the CDN$12 million received this month from IFC. The Company's current outstanding debt with Raiffeisen Bank is approximately US$32 million.
Bankers Petroleum Albania Subsidiary Appointments
Mr. Leonidha Cobo has been promoted from Production Director to Vice President and Deputy General Director of Bankers Petroleum Albania Ltd., Mr. Suneel Gupta, Bankers Petroleum Ltd. Vice President Production and Operations will also act as Deputy General Director of Bankers Petroleum Albania Ltd. Mr. Cobo and Mr. Gupta will be reporting to Mr. Abby Badwi who has also assumed the added role of President and General Director of Bankers Petroleum Albania Ltd. effective July 1st, 2009 replacing Mr. Bob Petryk who is leaving the Company. Bankers' is appreciative of Mr. Petryk's contribution to the Company's growth during the last three years.
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 and Kucova heavy oil fields. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.
For further information: Abby Badwi, President and Chief Executive Officer, (403) 513-2694; Doug Urch, VP, Finance and Chief Financial Officer, (403) 513-2691; Email: investorrelations(at)bankerspetroleum.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 (BNK.)
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BNK.L