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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