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Bankers Petroleum Demonstrates Continued Quarter Over Quarter
Growth In First Quarter 2007
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Success from U.S. Exploration Program While Expanding Scope to Capture
Additional Albanian Upside
Unless otherwise noted, all figures contained in this release are in
U.S. dollars.
CALGARY, May 10, 2007 -- Bankers Petroleum Ltd. (TSX: BNK, AIM: BNK)
today announced continued strong results in its first quarter of 2007.
Revenue for the quarter almost doubled to $10.7 million compared to
$5.7 million in the first quarter of 2006. Funds from operations were
$2.9 million, compared to $0.7 million for the comparable period in
2006.
"We continue to see strong quarter over quarter growth in our results,"
said Richard Wadsworth, President. "Once again, we've achieved gains in
production, revenue and netback through our various initiatives in
Albania, and significantly advanced our work in the U.S."
Mr. Wadsworth continued, "In addition, we've taken important first
steps in capturing additional upside value from our assets -- both in
Albania and the U.S. In the U.S. we've achieved successful drilling
results in two of our shale gas basins -- Oklahoma and Texas -- leading
to further drilling of horizontal and vertical wells in these areas in
the second quarter. Our cyclical thermal pilot project and other EOR
studies are progressing, and we're moving forward on further
integration strategies in Albania. Step by step we're delivering on our
promise to prove our resource portfolio and build returns for our
shareholders over the long-term."
First Quarter Highlights:
Average production increased 70% to 4,380 bopd from 2,579 bopd for the
same period in 2006, and 5% compared to 4,165 bopd for the fourth
quarter of 2006.
Oil and gas revenue rose 89% to $10.7 million from $5.7 million in the
comparable period in 2006, and 15% from $9.3 million in the fourth
quarter of 2006.
The netback in Albania improved to $11.42 per barrel from $9.75 in the
preceding quarter and $8.51 per barrel for the same period in 2006.
Funds from operations increased to $2.9 million from $1.6 million and
$0.7 million for the three months ended December 31, 2006 and the
corresponding period in 2006, respectively.
The majority of the equipment required for the Company's cyclical steam
pilot has been purchased and is either in country or on its way for
commencement in the third quarter of 2007.
The first shipment to a second refinery in Italy was completed with a
short term contract to export additional volumes over the second
quarter. Approximately 39% of the Company's crude oil was exported
during the first quarter at an average price of $28.67 per barrel.
In Texas, Bankers air drilled and completed the vertical Cogdell #64-1
well in the Palo Duro Basin. The Granite Wash Sands were successfully
fracture stimulated and produced at an average rate of 325 Mcf/d with
no condensate and about 24 bbls/d of fracture fluid on the last 7 days
of a 10-day flow test with approximately 20% of fracture stimulation
fluid yet to recover.
In Oklahoma, Bankers spudded its first horizontal well, Greenway #35-1H
in April, which offsets the Nickel Hill #1-26 discovery well.
A pipeline connection and surface tie-in was negotiated for the Nickel
Hill #1-26 vertical well and the Greenway #35-1H horizontal well. A
facility to handle production is expected to be completed for tie-ins
this summer.
Conference Call:
A conference call to discuss these results will be held Friday, May 11
at 9:00 a.m. MDT, 11:00 a.m. EDT, 4:00 p.m. BST. To participate in the
conference call, please dial 1-866-249-2157 or 1-416-644-3423
approximately 10 minutes prior to the call. A live and archived audio
webcast of the conference call will also be available on Bankers'
website at www.bankerspetroleum.com.
About Bankers Petroleum Ltd.
Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and
production company focused on opportunities in unconventional petroleum
assets. Bankers holds interests in four prospects in the Northern and
Central regions of the United States, where it is currently pursuing
the exploration of shale and tight gas sand plays. It also operates in
the Patos-Marinza oilfield in Albania pursuant to a license agreement,
producing heavy oil. Bankers shares are traded on the Toronto Stock
Exchange and the AIM Market in London, England under the ticker symbol
BNK.
For further information, contact:
Susan J. Soprovich
VP, Investor Relations and Corporate Governance
Ph: (403) 513-2681
Email: investorrelations@bankerspetroleum.com
Website: www.bankerspetroleum.com
View News Release in PDF Format:
File: http://www.bankerspete.com/i/pdf/BankersQ12007.pdf
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Copyright (c) 2007 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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