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Re: News Releases - Monday, July 21, 2008
Bankers Petroleum Achieves Record Quarterly Production of 5,822
BOPD
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Production, Operational and Corporate Updates Provided
CALGARY, July 21, 2008 - Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK) is
pleased to announce the following production, operational and corporate
updates.
Production
Second quarter production averaged 5,822 bopd from the Patos Marinza
oil field in Albania. Daily production increased by 12% over first
quarter production of 5,218 bopd, with quarterly exit production of
5,867 bopd. With these results, the Company is well on track to meet
its production target of 7,000 bopd by the end of this year. 42
re-activation operations of existing wells were completed during the
quarter.
Drilling Update
On June 21, Bankers commenced drilling operations in the field with the
spudding of the first vertical infill well. The well has been drilled
and cased to a total depth of 1,343 metres. As the first of four wells
to be drilled off a drilling pad, the well was programmed to test the
potential of multiple Gorani and Driza sandstone formations within the
first of numerous undrilled spacing units in the field that the Company
interprets as being undrained areas.
Log analysis indicates that eight individual sandstone units, ranging
from 3 to 18 metres of net pay, are hydrocarbon bearing with combined
net pay of 39 metres. Six of the eight zones were evaluated for
reservoir pressure: data confirms that the zones tested were porous and
permeable reservoir quality sandstones, and that five of the six zones
were at or near virgin reservoir pressure with the sixth interval
demonstrating an approximate 50 percent pressure depletion. These
positive results confirm the Company's drainage model and support its
plans to drill an additional 110 vertical and horizontal wells within
the field over the next three years.
The second well on the pad reached total depth of 1,390 metres and is
currently being prepared for logging operations. It is anticipated that
it will take three more weeks to finish drilling the remaining two
wells on the pad, following which completion operations will commence
and the wells will be placed on production. The second and third pads
have been built and are ready to drill an additional 10 wells in 2008.
Rig Tender
Technical and commercial evaluation for a second drilling rig capable
of drilling horizontal wells and several service rigs tenders are
complete; agreements with the winning contractors will be finalized in
the next few weeks. Bankers anticipates having the rigs available for
drilling and workover operations commencing in October 2008.
Patos Marinza Oil Price & Marketing
The second quarter average oil price was $64.47 per barrel (54% of the
Brent oil price), 24% higher than the first quarter average oil price
of $51.96 per barrel. The average oil price for June 2008 was $70.00
per barrel (53% of Brent).
Bankers is finalizing arrangements with the developers of the Port of
Vlore oil export terminal for the construction of a 13,000 cubic metre
Company-dedicated oil tank farm and expansion of the terminal. The
availability of this storage facility will improve the Company's export
operations and allow for larger oil liftings when the terminal is ready
to receive larger vessels next year.
Several meetings with the successful bidders of the recently announced
privatization of ARMO, the Albanian refinery, have taken place. The
objective of these meetings is to extend the Company's current oil
pricing agreement beyond its current term of July 2009 and develop a
pricing formula that will provide future sales price for Patos Marinza
oil that is competitive with similar crudes sold in European markets.
Based on discussions to date, the Company is confident that it will
reach an acceptable agreement with ARMO that meets the financial and
operational objectives for both firms.
Equity & Liquidity
Approximately 15.0 million options and 4.3 million warrants were
exercised during the second quarter, generating proceeds of
approximately $13.0 million. Total cash on deposit at the end of the
second quarter, was approximately $42.5 million. The Company expects
that its strong working capital position, future cash flow from
operations and available credit facilities are more than sufficient to
fund the previously announced three-year Albanian capital expenditure
program, including plans for the recently acquired Kucova field.
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 oil field and has a 100% interest in the Kucova oil
field. Bankers' shares are traded on the Toronto Stock Exchange and
the AIM Market in London, England under the stock symbol BNK.
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For further information, contact:
Abby Badwi Chief Executive Officer
(403) 513-2694
Doug Urch VP, Finance and Chief Financial Officer
(403) 513-2691
Susan J. Soprovich VP, Investor Relations and Corporate Governance
(403) 513-2681
Email: investorrelations@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
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Copyright (c) 2008 BANKERS PETROLEUM LTD. (BNK.H) All rights reserved.
For more information visit our website at http://www.bankerspete.com/
or send mailto:info@bankerspetroleum.com
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