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1st Quarter Results

Date : 05/14/2012 @ 8:00AM
Source : UK Regulatory (RNS & others)
Stock : Bankers Pet (BNK)
Quote : 307.5  5.0 (1.65%) @ 5:50AM
Bankers Pet share price Chart

1st Quarter Results


 
TIDMBNK 
 
Bankers Petroleum Announces 2012 First Quarter Financial and Operational 
Results 
 
Record Quarter of Revenue, Netback and Cash Flow 
 
CALGARY, May 14, 2012 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the 
"Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2012 first quarter 
financial and operational results.  During the quarter, Bankers achieved 
several key milestones, including record revenue, netback and cash flow. 
 
The complete reporting package, consisting of Management's Discussion and 
Analysis along with Financial Statements and Notes, is posted on the Company's 
website www.bankerspetroleum.com and SEDAR: www.sedar.com. 
 
 
 
Results at a Glance                  Three months ended 
(US$000, except as noted)                 March 31 
 
 
 
                                2012     2011        Change 
 
Oil revenue                     102,668  72,736      41% 
 
Net operating income            53,471   39,834      34% 
 
Net income                      7,765    11,219      (31%) 
 
  Per share - basic ($)         0.031    0.046       (33%) 
 
 
 
Funds generated from operations 48,072   29,948      61% 
 
  Per share - basic ($)         0.192    0.122       57% 
 
Capital expenditures            62,701   51,930      21% 
 
Average sales (bopd)            13,279   11,894      12% 
 
Average price ($/barrel)        84.96    67.95       25% 
 
Netback ($/barrel)              44.24    37.22       19% 
 
 
 
                                March 31 December 31 March 31 
                                2012     2011        2011 
 
Cash and deposits               77,150   54,013      82,854 
 
Working capital                 118,989  80,282      92,817 
 
Total assets                    747,029  661,216     522,476 
 
Long-term debt                  92,009   46,692      1,851 
 
Shareholders' equity            441,101  412,679     371,355 
 
 
 
 
Highlights for the quarter ended March 31, 2012 are: 
 
· Oil sales averaged 13,279 bopd, an increase of 12% compared to 11,894 
bopd for the same period in 2011, and 13,399 bopd during the previous quarter. 
 
 
· Revenue increased by 16% to $102.7 million ($84.96/bbl) from $88.3 million 
($71.67/bbl) in the previous quarter and by 41% from $72.7 million ($67.95/bbl) 
in the first quarter of 2011. Revenue represented 72% of the Brent oil price of 
$119 per barrel. 
 
 
· Royalties in favor of the Albanian Government and related entities, 
totalled $19.1 million for the quarter, up from $13.8 million for the first 
quarter of 2011.  Total royalties for 2011 were $64 million, representing 19% 
of revenue. 
 
 
· Operating, sales and transportation costs were $30 million in the 
first quarter, which include Albanian based companies and their employees. 
This compares with $19 million for the first quarter of 2011 and $106 million 
for 2011. 
 
 
· The Company recorded net operating income (netback) of $53.5 million 
($44.24/bbl) in the first quarter of 2012, compared to $37.7 million ($30.56/ 
bbl) during the previous quarter and $39.8 million ($37.22/bbl) in the same 
period of 2011. 
 
 
· In the first quarter of 2012, funds generated from operations were 
$48.1 million, an increase of 47% from the preceding quarter of $32.7 million 
and an increase of 61% from $29.9 million in the first quarter of 2011. 
 
 
· Capital expenditures were $62.7 million in the first quarter of 2012. 
The Company drilled 27 wells during the quarter, of which 24 were horizontal 
production wells and 3 were water disposal wells. Reactivation and recompletion 
work continued with 7 new reactivations and recompletions.  During the same 
period of 2011, capital expenditures were $51.9 million. 
 
 
· Equity proceeds from warrant and option exercises during the period 
raised $12.1 million. 
 
 
· The Company continues to maintain a strong financial position at 
March 31, 2012 with cash of $77.2 million and working capital of $119.0 
million.  Working capital for December 31, 2011 and March 31, 2011 was $80.3 
million and $92.8 million, respectively. 
 
 
Operational Update and Outlook 
 
Average second quarter production to date is 13,600 bopd. Flat production over 
the last few months is primarily due to operational challenges associated with 
mature heavy oilfield development including interference from old well bores, 
sand production, and water disposal capacity, all of which are impacting new 
well performance and the overall production growth rate. The Company is 
undertaking several technical and operational initiatives to enhance well and 
field performance as it continues to implement the necessary actions required 
to mitigate or lessen these operational challenges. 
 
Over the next few months, the Company will focus its development drilling 
campaign in high impact areas of the Patos-Marinza oilfield along with 
reviewing secondary pressure support programs in the Gorani and Driza 
formations. Steam injection at the thermal pilot will resume shortly and a new 
drilling location is being finalized for the exploration of Block F. 
 
The Company will be releasing an operational update on the morning of June 4, 
2012, followed immediately by a Company hosted Capital Markets day in Calgary 
to present a detailed description of its development activities for the 
remainder of this year. Further details on time and venue will be announced 
closer to the event. 
 
Bankers' Annual General Meeting will be held at The Metropolitan Centre, 333 - 
4 Avenue SW, Calgary, Alberta, on June 27, 2012 at 3:00 p.m. (Calgary time). 
 
For additional information, please see an updated version of the Company's May 
corporate presentation on www.bankerspetroleum.com. 
 
 
 
BANKERS PETROLEUM LTD. 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
FOR THE THREE MONTHS ENDED MARCH 31 
(Unaudited, expressed in thousands of US dollars, except per share 
amounts) 
 
 
 
                                                 2012       2011 
 
 
 
Revenues                                         $ 102,668  $ 72,736 
 
Royalties                                          (19,154)   (13,755) 
 
                                                   83,514     58,981 
 
Unrealized loss on financial commodity contracts   (3,209)    (1,401) 
 
                                                   80,305     57,580 
 
 
 
Operating expenses                                 17,432     11,597 
 
Sales and transportation expenses                  12,611     7,550 
 
General and administrative expenses                4,110      2,858 
 
Depletion and depreciation                         13,677     8,265 
 
Share-based payments                               4,236      4,645 
 
                                                   52,066     34,915 
 
                                                   28,239     22,665 
 
 
 
Net finance expense                                2,857      1,941 
 
 
 
Income before income tax                           25,382     20,724 
 
Deferred income tax expense                        (17,617)   (9,505) 
 
Net income for the period                          7,765      11,219 
 
 
 
Other comprehensive income 
 
    Currency translation adjustment                506        1,814 
 
Comprehensive income for the period              $ 8,271    $ 13,033 
 
 
 
Basic earnings per share                         $ 0.031    $ 0.046 
 
 
 
Diluted earnings per share                       $ 0.031    $ 0.044 
 
 
 
 
 
 
BANKERS PETROLEUM LTD. 
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
(Unaudited, expressed in thousands of US dollars) 
 
 
 
ASSETS 
 
                                             March 31      December 31 
                                             2012          2011 
 
Current assets 
 
    Cash and cash equivalents                $ 72,150    $ 49,013 
 
    Restricted cash                            5,000       5,000 
 
    Accounts receivable                        72,397      56,006 
 
    Inventory                                  18,527      14,412 
 
    Deposits and prepaid expenses              9,722       17,463 
 
    Financial commodity contracts              475         3,684 
 
                                               178,271     145,578 
 
Non-current assets 
 
    Property, plant and equipment              568,758     515,638 
 
                                             $ 747,029 $   661,216 
 
 
 
LIABILITIES 
 
Current liabilities 
 
    Accounts payable and accrued liabilities $ 58,393    $ 52,109 
 
    Current portion of long-term debt          889         13,187 
 
                                               59,282      65,296 
 
Non-current liabilities 
 
    Long-term debt                             92,009      46,692 
 
    Decommissioning obligation                 14,032      13,561 
 
    Deferred tax liabilities                   140,605     122,988 
 
                                               305,928     248,537 
 
 
 
SHAREHOLDERS' EQUITY 
 
Share capital                                  332,398     318,021 
 
Warrants                                       -           1,540 
 
Contributed surplus                            56,965      49,651 
 
Currency translation reserve                   6,915       6,409 
 
Retained earnings                              44,823      37,058 
 
                                               441,101     412,679 
 
                                             $ 747,029 $   661,216 
 
 
 
 
 
 
BANKERS PETROLEUM LTD. 
CONSOLIDATED STATEMENTS OF CASH FLOWS 
FOR THE THREE MONTHS ENDED MARCH 31 
(Unaudited, expressed in thousands of US dollars) 
 
 
 
                                                       2012       2011 
 
Cash provided by (used in): 
 
Operating activities 
 
  Net income for the period                            $ 7,765    $ 11,219 
 
  Depletion and depreciation                             13,677     8,265 
 
  Amortization of deferred financing costs               -          734 
 
  Accretion of long-term debt                            1,127      - 
 
  Accretion of decommissioning obligation                195        95 
 
  Unrealized foreign exchange loss                       246        672 
 
  Deferred income tax expense                            17,617     9,505 
 
  Share-based payments                                   4,236      4,645 
 
  Unrealized loss on financial commodity contracts       3,209      1,401 
 
  Cash premiums paid for financial commodity contracts   -          (6,588) 
 
                                                         48,072     29,948 
 
  Change in non-cash working capital                     (5,839)    (7,701) 
 
                                                         42,233     22,247 
 
Investing activities 
 
  Additions to property, plant and equipment             (62,701)   (51,930) 
 
  Change in non-cash working capital                     (642)      5,988 
 
                                                         (63,343)   (45,942) 
 
Financing activities 
 
  Issue of shares for cash                               12,146     3,130 
 
  Financing costs                                        (750)      (26) 
 
  Increase (decrease) in long-term debt                  32,824     (5,413) 
 
                                                         44,220     (2,309) 
 
Foreign exchange gain on cash and cash equivalents       27         739 
 
Increase (decrease) in cash and cash equivalents         23,137     (25,265) 
 
Cash and cash equivalents, beginning of period           49,013     106,619 
 
Cash and cash equivalents, end of period               $ 72,150   $ 81,354 
 
 
 
Interest paid                                          $ 201      $ 310 
 
Interest received                                      $ 60       $ 138 
 
 
 
 
 
 
BANKERS PETROLEUM LTD. 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
(Unaudited, expressed in thousands of US dollars, except number of common 
shares) 
 
                              Number of                                         Currency 
                              common         Share                  Contributed Translation Retained 
                              shares         capital    Warrants    surplus     Reserve     earnings  Total 
 
Balance at December 31, 2010  244,794,990 $  309,379 $  1,597    $  28,135  $   6,094   $   1,062  $  346,267 
 
 
 
Share-based payments          -              -          -           8,925       -           -         8,925 
 
Options exercised             1,963,444      5,077      -           (1,947)     -           -         3,130 
 
Net income for the period     -              -          -           -           -           11,219    11,219 
 
Currency translation          -              -          -           -           1,814       -         1,814 
adjustment 
 
Balance at March 31, 2011     246,758,434 $  314,456 $  1,597    $  35,113  $   7,908   $   12,281 $  371,355 
 
 
 
Share-based payments          -              -          -           15,560      -           -         15,560 
 
Options exercised             765,002        3,271      -           (1,022)     -           -         2,249 
 
Warrants exercised            174,333        461        (57)        -           -           -         404 
 
Share issue costs             -              (167)      -           -           -           -         (167) 
 
Net income for the period     -              -          -           -           -           24,777    24,777 
 
Currency translation          -              -          -           -           (1,499)     -         (1,499) 
adjustment 
 
Balance at December 31, 2011  247,697,769 $  318,021 $  1,540    $  49,651  $   6,409   $   37,058 $  412,679 
 
 
 
Share-based payments          -              -          -           8,005       -           -         8,005 
 
Options exercised             530,612        1,781      -           (698)       -           -         1,083 
 
Warrants exercised            4,672,991      12,596     (1,533)     -           -           -         11,063 
 
Warrants expired              -              -          (7)         7           -           -         - 
 
Net income for the period     -              -          -           -           -           7,765     7,765 
 
Currency translation          -              -          -           -           506         -         506 
adjustment 
 
Balance at March 31, 2012     252,901,372 $  332,398 $  -        $  56,965  $   6,915   $   44,823 $  441,101 
 
 
 
 
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 reactivations and well recompletions of the past 
will continue and success rates and production rates will be similar to those 
rates experienced for previous well recompletions and reactivations; 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. 
 
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 and 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. 
 
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 
 
Mark Hodgson 
VP, Business Development 
(403) 513-2695 
 
Email: investorrelations@bankerspetroleum.com 
Website: www.bankerspetroleum.com 
 
AIM NOMAD: 
Canaccord Genuity Limited 
Henry Fitzgerald-O'Connor 
+44 20 7050 6500 
 
AIM JOINT BROKERS: 
Canaccord Genuity Limited 
Ryan Gaffney/ Henry Fitzgerald-O'Connor 
+44 20 7050 6500 
 
Macquarie Capital Advisors 
Paul Connolly 
+44 20 3037 5639 
 
(BNK. BNK) 
 
 
 
 
 
END 
 

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