TIDMBNK
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") (TSX: BNK, AIM: BNK) 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 Çobo 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.
Çobo 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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