Reserves Report
CALGARY, March 9, 2011 � Bankers
Petroleum Ltd. (�Bankers� or the �Company�) (TSX: BNK, AIM: BNK) is pleased to
provide the results of its December 31, 2010 independent reserves evaluation
and reports the sixth consecutive year of reserves additions since Company
inception in 2004.
Evaluations were conducted by RPS Energy Canada Ltd. (�RPS�) for the Patos-Marinza oilfield, Albania and by DeGolyer
and McNaughton Canada Ltd. (�D&M�) for the Ku�ova
oilfield, Albania and were prepared in accordance with National Instrument
51-101 � Standards of Disclosure for Oil and Gas Activities.
Total Albania Reserves Summary
� Proved
reserves (�1P�) of 120 million barrels (30% increase from December 31, 2009)
representing over eleven times production replacement
� Proved
plus probable reserves (�2P�) of 238 million barrels (11% increase from
December 31, 2009)
� Proved,
probable and possible reserves (�3P�) of 427 million barrels (1% increase from
December 31, 2009)
� Mean
original oil in place resource estimate (�OOIP�) of 7.8 billion barrels (30%
increase from December 31, 2009)
� 2010
production was approximately 3.5 million barrels
Patos-Marinza Field
� 1P
reserves increased 30% to 117 million barrels of oil from 90 million barrels at
December 31, 2009
� 2P
reserves increased 11% to 226 million barrels (December 31, 2009 � 203 million
barrels)
� 3P
reserves increased 1% to 395 million barrels (December 31, 2009 � 390 million
barrels)
� Original
oil in place estimate (P50) increased 32% to 7.5 billion barrels (December 31,
2009 -� 5.7 billion barrels)
� All of Patos-Marinza�s 2010 recoverable reserves estimates are
from primary recovery methods only
The 2010 reserves growth is primarily attributable to the expansion of
the Company�s horizontal drilling program in new areas of the field and new
zones within the field area. This is reflected in the upgrade of 2P and 3P
reserves into 1P and 2P reserves category, respectively, and the expansion of
3P reserves and oil in place.
Patos-Marinza Contingent and
Prospective Resources
RPS has also
updated the Contingent and Prospective Resource oil estimates for the Patos-Marinza oilfield as at December 31, 2010. Contingent
and Prospective resources are based on thermal development technologies to be
applied to the Gorani and Driza
formations and secondary water flood methods proposed for the Marinza formation and expansion of the development areas,
primarily to the west of the current development.
The thermal pilot
first steam injection is scheduled for the third quarter of 2011. There are no
current water flood plans for the field.
Contingent
resource for 2010 is 1.2 billion barrels, compared to 838 million barrels in
2009
Prospective
resource for 2010 is 568 million barrels, compared to 384 million barrels in
2009
Ku�ova Field
There were no activities or Company production from the field in 2010;
field reserves remain unchanged. Early stage development has begun with
road-building and lease clearing.
�
� 1P
reserves 3 million barrels
� 2P
reserves 11 million barrels
� 3P
reserves 32 million barrels
� Mean
original oil in place resource estimate remains unchanged at� 297 million barrels
Total Net Present Value of Total Albania Reserves (After Tax, discounted
at 10%)
� 1P
reserves US$949 million
� 2P
reserves US$1.97 billion
� 3P
reserves US$3.55 billion
� Values
are based on RPS (Patos-Marinza)
and D&M (Ku�ova) January 1, 2011 price forecast
tables summarized below
� Basic
shares outstanding of as of December 31, 2010 were approximately 245 million
Finding and Development Costs (�F&D�)
With successful results from the Company�s horizontal drilling
activities in the northern part of Patos-Marinza
oilfield, the Company is expanding the horizontal drilling program into the
central, southern and western part of the field. Also, due to casing failures
in old vertical wells, replacement of old vertical wells with new horizontal
wells has been added to the capital program. Accordingly, in the 2P development
case, the number of well re-activations has been reduced to 310 wells and new
horizontal wells have increased from 260 wells in the previous year�s projected
capital program to 624 wells in 2011 and beyond.
Future undiscounted capital costs for Patos-Marinza
and Ku�ova are now projected to be US$1.5 billion,
US$1.2 billion and US$1.0 billion on a 3P, 2P and 1P basis, respectively.� This represents the following F&D costs:
� 1P
reserves US$10.06 per barrel
� 2P
reserves US$5.80 per barrel
� 3P
reserves US$3.85 per barrel
Gross Oil Reserves� Using Forecast Prices (MMbbls)
|
2010
|
|
2009
Total Albania
|
%
|
|
Patos-Marinza
|
Ku�ova
|
Total Albania
|
|
�� Proved
|
|
|
|
|
|
|
Developed Producing
|
17.3
|
-
|
17.3
|
|
22.9
|
-24
|
Developed
Non-Producing
|
-
|
-
|
-
|
|
-
|
-
|
Undeveloped
|
99.7
|
3.2
|
102.9
|
|
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