TIDMBNK 
 
Bankers Petroleum announces 2016 first quarter financial and operational 
                                    results 
 
CALGARY, May 5, 2015 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the 
"Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2016 first quarter 
financial and operational results. 
 
During the first quarter, Bankers achieved a cash margin of US$6.91 per barrel. 
All amounts listed in this news release are in US dollars unless otherwise 
stated. 
 
"The first quarter was challenging for the Company. We navigated the volatile 
and competitive heavy oil commodity markets and maintained firm footing as a 
business. At the same time, it was an exciting quarter, as the proposed 
acquisition by Geo-Jade Petroleum Corporation ("Geo-Jade") brings forth the 
opportunity for shareholders to crystallize value at a significant premium to 
the prevailing market valuation," commented President and Chief Executive 
Officer, David French. "Bankers has been working alongside Geo-Jade to complete 
the necessary steps to ensure a timely close of the proposed transaction. Our 
Management team and Board of Directors remain in full support of the 
transaction, and believe it to be in the best interest of shareholders." 
 
Results at a Glance             Three Months Ended 
 
($000s, except as noted)        March 31, 2016 December 31, 2015 March 31, 2015 
 
Financial 
 
 Oil revenue                    33,091         56,880            72,404 
 
 Net operating income           3,448          23,235            24,868 
 
 Net income (loss)              (11,971)       (8,391)           879 
 
  Basic (US$/share)             (0.05)         (0.04)            0.00 
 
  Diluted (US$/share)           (0.05)         (0.04)            0.00 
 
 Funds generated from           1,447          34,326            24,890 
 operations 
 
  Basic (US$/share)             0.01           0.13              0.10 
 
 Capital expenditures           12,676         24,651            49,945 
 
Operating 
 
 Average production (bopd)      17,363         18,137            19,767 
 
 Average sales (bopd)           17,280         18,558            20,283 
 
 Average Brent oil price (US$/  33.94          43.76             53.94 
 barrel) 
 
 Average realized price (US$/   21.04          33.31             39.66 
 barrel) 
 
 Netback (US$/barrel)           2.19           13.60             13.62 
 
 Cash margin (US$/barrel)       6.91           24.01             23.32 
 
                                March 31, 2016 December 31, 2015 March 31, 2015 
 
 Cash and restricted cash       52,996         69,141            57,842 
 
 Working capital                144,211        159,868           174,209 
 
 Total assets                   1,238,380      1,261,390         1,264,256 
 
 Long-term debt                 95,188         98,628            98,872 
 
 Shareholders' equity           708,318        719,294           718,552 
 
Highlights 
 
Bankers reached several key financial and operational achievements during the 
first quarter of 2016 as described below: 
 
Arrangement Agreement: 
 
  * On March 20, 2016, Bankers Petroleum Ltd. entered into a definitive 
    agreement with an affiliate of Geo-Jade Petroleum Corporation, for the 
    purchase of all the issued and outstanding common shares of the Company at 
    a cash price of C$2.20 per common share of the Company. The transaction 
    will be effected by way of a plan of arrangement under the Business 
    Corporations Act. This transaction is subject to customary closing 
    conditions, including receipt of court, shareholder and regulatory 
    approvals required under the Investment Canada Act, the People's Republic 
    of China and the Republic of Albania. The transaction is expected to close 
    before June 30, 2016. 
  * Materials have now been distributed to all Bankers Shareholders for their 
    vote at the Special Meeting to be held on May 31, 2016. All Directors and 
    Officers of Bankers remain committed to this transaction and recommend 
    voting in favor. The Circular and other documents are available at http:// 
    www.bankerspetroleum.com/ or http://www.sedar.com/. 
 
Operational Highlights: 
 
  * Average oil production for the three months ended March 31, 2016 was 17,363 
    barrels of oil per day (bopd) compared to 18,137 bopd in the previous 
    quarter and 19,767 bopd in the first quarter of 2015. 
  * Oil sales averaged 17,280 bopd for the first quarter of 2016 compared to 
    18,558 bopd for the previous quarter and 20,283 bopd for the first quarter 
    of 2015. Crude oil inventory at March 31, 2016 increased to 260,000 barrels 
    compared to 256,500 barrels at December 31, 2015. 
  * During the first quarter of 2016, capital expenditures were $13 million. 
    The Company did not drill any wells during the quarter. Capital 
    expenditures were $25 million for the previous quarter and $50 million for 
    the first quarter of 2015. 
 
Product Margin Highlights: 
 
  * For the three months ended March 31, 2016, operating and sales and 
    transportation (S&T) costs, primarily originating from Albanian-based 
    companies and their employees, were $25 million ($16.16/bbl) compared to 
    $26 million ($15.40/bbl) for the previous quarter and $37 million ($20.48/ 
    bbl) for the first quarter of 2015. 
  * Net operating income (netback) in the first quarter of 2016 was $3 million 
    ($2.19/bbl) compared to $23 million ($13.60/bbl) for the previous quarter 
    and $25 million ($13.62/bbl) for the first quarter of 2015. 
  * Cash margin for the first quarter of 2016 was $6.91/bbl compared to $24.01/ 
    bbl in the previous quarter and $23.32/bbl in the first quarter of 2015. 
    Cash margin represents netback inclusive of the realized gain on commodity 
    contracts. 
 
Financial Highlights: 
 
  * For the first quarter of 2016, revenue was $33 million ($21.04/bbl) 
    compared to $57 million ($33.31/bbl) in the previous quarter and $72 
    million ($39.66/bbl) in the first quarter of 2015. Field price realization 
    represented 62% of the Brent oil benchmark price ($33.94/bbl) for the first 
    quarter of 2016 compared to 76% of the Brent oil benchmark price ($43.76/ 
    bbl) in the previous quarter and 74% of the Brent oil benchmark price 
    ($53.94/bbl) in the first quarter of 2015. The reduction as a percentage of 
    Brent compared to the previous quarter and first quarter of 2015 was due to 
    competitive pricing differential pressure resulting from weakness in 
    commodity prices. 
  * Royalties to the Albanian Government and related entities during the first 
    quarter of 2016 were $4 million (13% of revenue) compared to $7 million 
    (13% of revenue) for the previous quarter and $10 million (14% of revenue) 
    for the first quarter of 2015. 
  * Funds generated from operations were $1 million ($0.01 per share) for the 
    first quarter of 2016 compared to $34 million ($0.13 per share) for the 
    previous quarter and $25 million ($0.10 per share) for the first quarter of 
    2015. 
  * The Company continues to maintain a strong financial position at March 31, 
    2016 with cash and restricted cash of $53 million and working capital of 
    $144 million. At March 31, 2016, the Company had drawn $120 million of its 
    approved credit facilities, as compared to $119 million at the end of 2015. 
    Working capital for December 31, 2015 and March 31, 2015 was $160 million 
    and $174 million, respectively. 
  * At March 31, 2016, Bankers has hedged 5,000 bopd under costless collar 
    contracts with an average floor of $52.09/bbl and an average ceiling of 
    $54.64/bbl (all prices are referenced to Dated Brent) for the balance of 
    2016. In the first quarter of 2016 the hedge program generated proceeds of 
    $7.4 million. The remaining 2016 hedge program at March 31, 2016, is valued 
    at $16.2 million. These contracts are designed to protect Bankers against 
    further volatility in oil prices in 2016. Subsequent to the end of March, 
    the Company added another 1,000 bopd costless collar contract for the 
    balance of 2016, thereby representing 6,000 bopd at an average floor of 
    $51.52/bbl and an average ceiling of $53.78/bbl. 
  * During the quarter, the Company signed a formal binding agreement with the 
    Albanian National Agency for Natural Resources (AKBN) and the Minister of 
    Energy and Industry to engage third-party international experts to assist 
    in resolving the outstanding cost recovery audit. The work by the 
    independent auditor and consultant has commenced and is expected to be 
    completed during the third quarter of 2016. 
 
Outlook: 
 
Production in the second quarter to date is 16,704 bopd, 3.5% lower than the 
first quarter average of 17,363 bopd. The Company is focused on optimization of 
current production levels and is monitoring the economic return of all wells in 
accordance with the current oil price environment. 
 
Activity in the second quarter includes 2 to 4 additional well conversions to 
injection to expand the EOR program, completion of the Pad D and Pad H vapor 
recovery units for gas conservation, completion of the Pad D inlet expansion 
and west emulsion gathering system to improve transportation costs and treating 
efficiency. The producing water and polymer patterns continue to perform well 
and Bankers continues to monitor production from the fifty-four (54) existing 
patterns. 
 
In the second half of the year, Bankers' activity focuses on further expanding 
the EOR program with up to 12 additional injector conversions, managing 
existing production and drilling new horizontal wells as commodity price 
improvement allows. 
 
Transaction Update: 
 
Bankers and Geo-Jade continue to work together to complete the necessary steps 
to ensure a timely close of the previously announced corporate transaction 
("Arrangement"). Bankers has filed its Management Information Circular (the 
"Circular") and related proxy materials on SEDAR and its website (http:// 
www.bankerspetroleum.com/), in advance of the Company's special meeting of 

(MORE TO FOLLOW) Dow Jones Newswires

May 05, 2016 07:00 ET (11:00 GMT)

shareholders to be held on May 31, 2016 (the "Special Meeting"). The purpose of 
the Special Meeting is to seek shareholder approval of the Arrangement with 
affiliates of Geo-Jade. 
 
Benefits of the Arrangement include: 
 
  * Cash price of C$2.20 per Bankers Share 
  * Bankers debt will be handled separately by the purchasing Company and will 
    not affect the stated purchase price of $2.20 per Bankers Share 
  * The Arrangement is an opportunity for shareholders to crystalize value 
    representing a premium of 98% over Bankers' closing share price on the TSX 
    of C$1.11 on March 18, 2016, and 109% over the 30-trading day volume 
    weighted average trading price of Bankers Shares of C$1.05 per share ending 
    on March 18, 2016 
  * The Arrangement has received the unanimous approval of the Board of 
    Directors of Bankers and carries the full support of Bankers' Management 
    team 
 
Shareholder Voting: 
 
Bankers' Board of Directors unanimously recommends that shareholders vote in 
favor of the Arrangement. 
 
Shareholders who have questions regarding the Arrangement or require assistance 
with voting may contact the Proxy Solicitation Agent below: 
 
Laurel Hill Advisory Group 
Toll Free: 1-877-452-7184 
International: +1 416-304-0211 outside Canada and the US 
By Email: assistance@laurelhill.com 
 
Special Meeting for Shareholders: 
 
The Special Meeting will be held at The Metropolitan Centre (Strand/Tivoli Rm), 
333 4th Avenue SW, Calgary, Alberta on Tuesday, May 31, 2016 at 3:00 p.m. 
(Calgary time). 
 
Bankers will provide further information with respect to the timing of closing 
of the Arrangement and the delisting of the Bankers Shares from the TSX and AIM 
as updates become available. 
 
Supporting Documents: 
 
The full Management Discussion and Analysis (MD&A), Financial Statements and 
updated corporate presentation are available on http://www.bankerspetroleum.com 
/. The MD&A and Financial Statements will also be available on http:// 
www.sedar.com/. 
 
BANKERS PETROLEUM LTD. 
 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 
 
FOR THE THREE MONTHS ENDED MARCH 31 
 
(Unaudited, expressed in thousands of US dollars, except per share amounts) 
 
                                                    2016           2015 
 
Revenues                                         $  33,091   $     72,404 
 
Royalties                                           (4,231)        (10,144) 
 
Revenues, net of royalties                          28,860         62,260 
 
Realized gain on financial commodity contracts      7,423          14,130 
 
Unrealized loss on financial commodity contracts    (3,800)        (2,039) 
 
Total operating revenues                            32,483         74,351 
 
Operating expenses                                  17,717         23,495 
 
Sales and transportation expenses                   7,695          13,897 
 
General and administrative expenses                 7,141          4,652 
 
Contract settlement expenses                        -              355 
 
Depletion and depreciation                          26,658         30,119 
 
Share-based compensation                            252            1,182 
 
Total expenses                                      59,463         73,700 
 
Operating income (loss)                             (26,980)       651 
 
Net finance expense                                 (164)          (8,888) 
 
Loss before income tax                              (27,144)       (8,237) 
 
Income tax (expense) recovery 
 
             Current                                (267)          - 
 
             Deferred                               15,440         9,116 
 
                                                    15,173         9,116 
 
Net income (loss) for the period                    (11,971)       879 
 
Other comprehensive income (loss) 
 
Currency translation adjustment                     476            (1,420) 
 
Comprehensive loss for the period                $  (11,495) $     (541) 
 
Basic earnings (loss) per share                  $  (0.046)  $     0.003 
 
Diluted earnings (loss) per share                $  (0.046)  $     0.003 
 
 
 
BANKERS PETROLEUM LTD. 
 
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 
 
(Unaudited, expressed in thousands of US dollars) 
 
ASSETS 
 
                                            March 31 2016  December 31, 2015 
 
Current assets 
 
Cash and cash equivalents                   $ 37,958       $ 51,963 
 
Restricted cash                               15,038       17,178 
 
Accounts receivable                           53,752       56,592 
 
Inventory                                     4,316        4,597 
 
Deposits and prepaid expenses                 81,219       67,514 
 
Financial commodity contracts                 16,200       20,000 
 
                                              208,483      217,844 
 
Non-current assets 
 
Property, plant and equipment                 1,019,130    1,034,791 
 
Exploration and evaluation assets             10,767       8,755 
 
                                            $ 1,238,380    $ 1,261,390 
 
LIABILITIES 
 
Current liabilities 
 
  Accounts payable and accrued liabilities  $ 40,604       $ 39,156 
 
  Income tax liability                        1,032        765 
 
  Current portion of long-term debt           22,636       18,055 
 
                                              64,272       57,976 
 
Non-current liabilities 
 
Long-term debt                                95,188       98,628 
 
Decommissioning obligation                    29,655       29,264 
 
Deferred tax liabilities                      340,947      356,228 
 
                                              530,062      542,096 
 
SHAREHOLDERS' EQUITY 
 
Share capital                                 365,045      365,045 
 
Contributed surplus                           94,818       94,299 
 
Currency translation reserve                  1,993        1,517 
 
Retained earnings                             246,462      258,433 
 
                                              708,318      719,294 
 
                                            $ 1,238,380    $  1,261,390 
 
 
 
 
BANKERS PETROLEUM LTD. 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS 
 
FOR THE THREE MONTHS ENDED MARCH 31 
 
(Unaudited, expressed in thousands of US dollars) 
 
                                                          2016         2015 
 
Cash provided by (used in): 
 
Operating activities 
 
 Net income (loss) for the period                         $ (11,971) $ 879 
 
 Depletion and depreciation                                 26,658     30,119 
 
 Accretion of long-term debt                                220        250 
 
 Accretion of decommissioning obligation                    352        315 
 
 Unrealized foreign exchange gain                           (2,691)    (778) 
 
 Current income tax expense                                 267        - 
 
 Deferred income tax recovery                               (15,440)   (9,116) 
 
 Share-based compensation                                   252        1,182 
 
 Unrealized loss on financial commodity contracts           3,800      2,039 
 
                                                            1,447      24,890 
 
 Change in non-cash working capital                         2,918      7,839 
 
                                                            4,365      32,729 
 
Investing activities 
 
 Additions to property, plant and equipment                 (10,664)   (49,818) 
 
 Additions to exploration and evaluation assets             (2,012)    (127) 
 
 Restricted cash                                            2,140      (591) 
 
 Change in non-cash working capital                         (9,237)    (5,718) 
 
                                                            (19,773)   (56,254) 
 
Financing activities 
 
 Issue of shares for cash                                   -          211 
 
 Change in long-term debt                                   1,081      7,762 
 
                                                            1,081      7,973 
 
Foreign exchange gain (loss) on cash and cash equivalents   322        (233) 
 
Decrease in cash and cash equivalents                       (14,005)   (15,785) 
 
Cash and cash equivalents, beginning of period              51,963     68,036 
 
Cash and cash equivalents, end of period                  $ 37,958   $ 52,251 
 
Interest paid                                             $ 222      $ 45 
 
Interest received                                         $ 87       $ 96 
 
 
 
BANKERS PETROLEUM LTD. 
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
(Unaudited, expressed in thousands of US dollars, except number of common 
shares) 
 
                                Number of     Share     Contributed   Currency      Retained   Total 
                                common        capital   surplus       translation   earnings 
                                shares                                reserve 
 
Balance at December 31, 2014    261,084,393 $ 363,670 $ 86,409      $ 4,410       $ 262,047  $ 716,536 
 
Share-based compensation        -             -         2,346         -             -          2,346 
 
Options exercised               100,000       403       (192)         -             -          211 
 
Net income for the period       -             -         -             -             879        879 
 
Currency translation adjustment -             -         -             (1,420)       -          (1,420) 
 
Balance at March 31, 2015       261,184,393 $ 364,073 $ 88,563      $ 2,990       $ 262,926  $ 718,552 
 
Share-based compensation        -             -         6,197         -             -          6,197 
 
Options exercised               239,935       972       (461)         -             -          511 
 
RSUs exercised                  133,056       -         -             -             -          - 
 
Net loss for the period         -             -         -             -             (4,493)    (4,493) 
 

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Currency translation adjustment -             -         -             (1,473)       -          (1,473) 
 
Balance at December 31, 2015    261,557,384 $ 365,045 $ 94,299      $ 1,517       $ 258,433  $ 719,294 
 
Share-based compensation        -             -         519           -             -          519 
 
Net loss for the period         -             -         -             -             (11,971)   (11,971) 
 
Currency translation adjustment -             -         -             476           -          476 
 
Balance at March 31, 2016       261,557,384 $ 365,045 $ 94,818      $ 1,993       $ 246,462  $ 708,318 
 
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 http://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 
and Eastern Europe. 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". In 2015 Bankers 
acquired an 85% interest in the rights to explore the Püspökladány Block 
concession within the Pannonian Basin located in north eastern Hungary. 
Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in 
London, England under the stock symbol BNK. 
 
 
 
 
David French, President and Chief Executive Office, (403) 513-6930; Doug Urch, 
Executive VP, Finance and Chief Financial Officer, (403) 513-2691; Laura 
Bechtel, Investor Relations & Corporate Communications Specialist, (403) 
513-3428, Email: investorrelations@bankerspetroleum.com, Website: 
www.bankerspetroleum.com; AIM NOMAD: Canaccord Genuity Limited, Henry 
Fitzgerald-O'Connor, +44 0 207 523 8000; AIM BROKER: FirstEnergy Capital LLP, 
Hugh Sanderson / David van Erp, +44 0 207 448 0200 
 
 
 
 
 
 
END 
 

(END) Dow Jones Newswires

May 05, 2016 07:00 ET (11:00 GMT)

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