Bankers Petroleum 2014 Investor Day
Expanding Margins, Encouraging Initial Water and Polymer Flood Results and
5-Year Development Outlook
CALGARY, June 9, 2014 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK, AIM: BNK) is pleased to announce cost reduction
initiatives, early stage water and polymer flood results, and the outline of a
5-year development program. The Toronto Investor Day presentation will be
streamed live through webcast today, Monday, June 9th, 2014 beginning at 12:30
pm EDT. An additional presentation will be made in London on June 11th at 8:00
am (BST).
Over the past year, Bankers has been focused on a strategy of delivering
consistent, reliable growth through our primary drilling program, expanding our
margins through operational improvements, and evaluating the potential of water
and polymer floods in the Patos-Marinza oilfield. In today's Investor Day
presentation, representatives of Banker's management and technical teams will
discuss performance in each of these areas.
Cost Initiatives
Drilling and Capital Costs
· Over the past several years, the Company has made strong progress in
reducing drilling costs to approximately $1 million per horizontal well with an
average drill time of 12 days through improved well design and drilling
practices. This is a 30% reduction in costs from $1.3 million per well and an
average drilling time of 14 days in 2011.
· The Company is focused on continued optimization of well design, as
well as further reduction of costs through improved contracts and supply
sourcing initiatives.
· Looking forward, the Company is pursuing new initiatives including
drilling the first multi-lateral well in the heavier oil quality Gorani
reservoir in the third quarter of this year, and conducting lateral drainage
testing to further evaluate the optimal horizontal length for improved well
performance.
Expanding our Margins
· In the first quarter of this year, the Company announced record
netbacks of $55.75 as a result of cost reduction initiatives underway in both
operating, sales and transportation costs.
· Over the past year, the Company has reduced diluent costs by $3.59
per barrel through optimizing its central treating process, and reducing usage
of diluent in workover fluids. Bankers will continue to pursue ways to reduce
diluent, as well as focus on developing production from the Marinza and
Bubullima reservoir zones which contain lighter oil.
· The Company is also improving its energy costs through transition
from diesel generators to natural gas and electric power units in the field,
and the development of gas gathering infrastructure to harness associated gas
produced in conjunction with its heavy oil.
· Ongoing analysis of workover trends, and both improved progressive
cavity pump design and artificial lift systems, have resulted in significantly
longer pump run times and well performance over the last several quarters. In
2014, the Company expects to further reduce workover costs through the addition
of tubing rotators and continuous rod application.
· Looking forward, Bankers will focus on reducing in-field trucking by
assessing the additional tie-in of over 60 percent of its transported volumes.
Three current flow-line projects are under way targeting a large portion of
this volume, with further infrastructure expansion expected in 2015.
Water and Polymer Flood Program
· In 2013, and through the first half of 2014, Bankers has implemented
3 water and 9 polymer flood patterns and continues to monitor early stage
results. The water flood patterns are in the Marinza (M0) and polymer flood
patterns in the Lower Driza (D3, D4, and D5) reservoir sands within the main
area of the Patos-Marinza oilfield.
Early Stage Results
Bankers is pleased to announce the following results of these initial patterns:
· Performance to date from all patterns is exceeding the minimum
performance levels set by the Company with respect to economic thresholds in
offset producer response.
· The Company is strongly encouraged by these results and will continue
to expand the water and polymer floods, testing additional areas of the field
and reservoir zones with 14 injector conversions projected in 2014 and
increasing to 25 conversions in 2015.
· While these results are exciting and could lead to incremental
recovery as well as reduced field declines in successful flood demonstration
areas, investors are cautioned that the response is still early stage.
5-Year Development Plan
· Bankers is also pleased to share a five year development outlook
based on continued primary development through horizontal drilling, the
addition of further water and polymer flood patterns and the evaluation of a
potential thermal program.
Primary Development
· Through continued execution of the horizontal drilling program, the
Company expects to deliver reliable annual production growth of 10 - 15 %,
drilling between 150 - 170 wells per year and focusing on managing costs to
maximize netbacks.
Secondary Development
· Secondary expansion will continue into the balance of 2014 and 2015,
with pace of development in 2016 and beyond lead by performance response.
· Patos-Marinza's initial results are inline with analogous fields
yielding incremental recovery. The Company looks forward to delineation of
these results in the coming years.
Thermal Development
· Data collection and evaluation continue for potential thermal
recovery to target the shallow and heavier areas of the Patos-Marinza oilfield.
· Over the next two to three years, the Company plans to obtain core
data to evaluate the reservoir suitability, and develop a pilot test in an area
amenable to thermal techniques.
Investor Day Presentation Webcast Details
For those unable to attend today's Investor Day presentation, the live audio
webcast can be accessed through Bankers website at www.bankerspetroleum.com or
by entering the following URL into your web browser, http://event.on24.com/
r.htm?e=794785&s=1&k=7E3E45837B38B2568044F4DA048A5508.
Supporting Documents
The 2014 Investor Day presentation is available on the Company's website at
www.bankerspetroleum.com.
London Investor Day
Bankers will be hosting another Investor Day presentation in London on
Wednesday, June 11th, 2014 at the May Fair Hotel. Institutional investors and
analysts that are interested in attending are asked to register by contacting
Laura Bechtel at lbechtel@bankerspetroleum.com.
London Presentation Agenda
8:30 - 9:15 am (BST) Cost Initiatives
9:25 - 10:10 am (BST) Polymer and Water Flood Results
10:20 - 10:50 am (BST) 5-Year Development Outlook
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, 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.
SOURCE: Bankers Petroleum Ltd.
For further information:
David French
President and Chief Executive Officer
(403) 513-6930
Doug Urch
Executive VP, Finance and Chief Financial Officer
(403) 513-2691
Laura Bechtel
Investor Relations Analyst
(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
(BNK.)