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Press release from PR Newswire

BANKERS PETROLEUM ANNOUNCES 2011 FIRST QUARTER FINANCIAL AND OPERATIONAL RESULTS

Friday, May 13, 2011

BANKERS PETROLEUM ANNOUNCES 2011 FIRST QUARTER FINANCIAL AND OPERATIONAL RESULTS08:00 EDT Friday, May 13, 2011 Record Quarter of Production and Financial Results CALGARY, May 13 /PRNewswire-FirstCall/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK) (AIM: BNK) is pleased to provide its 2011 first quarter Financial and operational results. The complete reporting package, consisting of Management's Discussion and Analysis along with Financial Statements and Notes, is posted on the Company's website www.bankerspetroleum.com and SEDAR: www.sedar.com. Results at a Glance (US$000, except as noted)(3)     Three months ended March 31     Three months ended December 31                                       2011     2010     Change     2010     Change Oil revenue     72,736     35,149     107%     50,945     43% Net operating income     39,834     15,639     155%     25,465     56% Net income (loss)     11,219     (363)     32 x     4,630     142% Funds generated from operations(1)     30,259     13,814     119%     23,292     30% Capital expenditures     51,930     26,170     98%     37,367     39% Average production (bopd)     11,894     8,282     44%     10,424     14% Average price ($/barrel)     67.95     47.16     44%     53.12     28% Netback ($/barrel)     37.22     20.98     77%     26.55     40%                                       March 31 2011     March 31 2010     Change     December 31 2010     Change Cash and deposits     82,854     67,712     22%     108,119     (23%) Adjusted working capital(2)     111,382     70,626     58%     134,934     (17%) Total assets     522,476     329,036     59%     465,598     12% Bank loans     20,416     26,418     (23%)     25,829     (21%) Shareholders' equity     371,355     226,882     64%     346,267     7%                                 (1)      Includes $6.6 million cash premiums paid for financial commodity contracts. (2)      Represents working capital net of current portion of long-term debt. (3)      Effective January 1, 2011, and retroactive to January 1, 2010, the Company adopted International Financial Reporting Standards (IFRS). Previously, the Company prepared its Financial Statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP). The transition has not resulted in any material variation from prior periods. Full details on the transition adjustments are contained in the Notes to the Consolidated Interim Financial Statements. Highlights for the quarter ended March 31, 2011 are: Bankers achieved record production during the three months ended March 31, 2011. Production averaged 11,894 bopd, an increase of 44%, compared to the same period in 2010. Production at the end of March 31, 2011 exceeded 13,500 bopd. Revenue increased 107% to $72.7 million ($67.95/bbl) in the first quarter of 2011 from $35.1 million ($47.16/bbl) during the first quarter of 2010. Net operating income (netback) increased 155% to $39.8 million ($37.22/bbl) in the first quarter of 2011 from $15.6 million ($20.98/bbl) during the first quarter of 2010. Funds generated from operations increased 119% to $30.3 million in the first quarter of 2011 from $13.8 million over the first quarter of 2010. Included in funds generated from operations are cash premiums paid of $6.6 million for financial commodity contracts in February 2011. Capital expenditures for the first quarter of 2011 were $51.9 million and included drilling 16 wells, 29 reactivation and related infrastructure/expansion projects. During the comparable 2010 quarter, capital expenditures were $26.2 million. The Company continues to maintain a strong balance sheet adjusted working capital of $111.4 million (including cash and cash equivalents totalling $82.9 million) and bank loans of $20.4 million. At December 31, 2010 the Company had adjusted working capital of $134.9 million and bank loans of $25.8 million. Adjusted working capital at March 31, 2010 was $70.6 million. ANNUAL GENERAL MEETING The Company's Annual General Meeting (AGM) will take place on May 24, 2011 at 3:00pm MDT (5:00pm EDT) at the Petroleum Club in Calgary, AB, Canada. For additional information, please see an updated version of the Company's corporate presentation on www.bankerspetroleum.com. BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Unaudited, expressed in thousands of US dollars)                                   ASSETS                 March 31 2011       December 31 2010       January 1 2010 Current assets                                   Cash and cash equivalents              $ 81,354     $ 106,619       $ 59,495   Short-term investments               -       -       7,275   Restricted cash               1,500       1,500       1,500   Accounts receivable               48,063       29,233       23,358   Inventory               15,890       4,199       2,031   Deposits and prepaid expenses               15,265       16,624       5,899                 162,072       158,175       99,558 Non-current assets                                   Note receivable               -       -       2,749   Deferred financing costs               13,589       13,980       15,824   Financial commodity contracts               5,187       -       -   Property, plant and equipment               341,628       293,443       187,924 Total assets             $ 522,476     $ 465,598     $ 306,055                                   LIABILITIES Current liabilities                                   Accounts payable and accrued liabilities             $ 50,690     $ 23,241       $ 19,505   Current portion of long-term debt               18,565       4,014       4,639                 69,255       27,255       24,144 Non-current liabilities                                   Long-term debt               1,851       21,815       23,446   Decommissioning obligation               6,871       6,622       4,796   Deferred tax liabilities               73,144       63,639       38,892 Total liabilities               151,121       119,331       91,278                                   SHAREHOLDERS' EQUITY Share capital               314,456       309,379       206,058 Warrants               1,597       1,597       1,739 Contributed surplus               35,113       28,135       16,443 Accumulated other comprehensive income               7,908       6,094       - Retained earnings (deficit)               12,281       1,062       (9,463)                 371,355       346,267       214,777               $ 522,476     $ 465,598     $ 306,055 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars, except per share amounts)                                                                       2011       2010                                               Revenues                       $       72,736       $       35,149 Royalties                             (13,755)             (7,190)                               58,981             27,959                                               Operating expenses                               11,597             7,925 Sales and transportation expenses                               7,550             4,395 General and administrative expenses                               2,858             2,456 Depletion and depreciation                               8,265             4,384 Amortization of deferred financing costs                               734             683 Share-based payments                               4,645             3,704 Unrealized loss on financial commodity contracts                             1,401             -                               37,050             23,547                               21,931             4,412                                               Finance income                             307             727 Finance expense                             (1,514)             (753)                               (1,207)             (26)                                               Income before income tax                             20,724             4,386 Deferred income tax expense                             (9,505)             (4,749) Net income (loss) for the period                             11,219             (363)                                               Other comprehensive income                                               Currency translation adjustment                             1,814             1,444 Comprehensive income for the period                     $       13,033     $       1,081                                               Basic earnings (loss) per share                     $       0.046     $       (0.002)                                               Diluted earnings (loss) per share                     $       0.044     $       (0.002) BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited, expressed in thousands of US dollars, except number of common shares)             Number of common shares       Share capital       Warrants       Contributed surplus       Accumulated other comprehensive income       Retained earnings (deficit)       Total Balance at January 1, 2010           228,272,165       $     206,058       $     1,739     $     16,443     $     -     $     (9,463)     $     214,777                                                                                       Share-based payments             -           -           -           6,608           -           -           6,608 Options exercised           1,035,222           2,759           -           (952)           -           -           1,807 Warrants exercised           1,033,334           2,724           (115)           -           -           -           2,609 Net loss for the period           -           -           -           -           -           (363)           (363) Currency translation adjustment           -           -           -           -           1,444           -           1,444 Balance at March 31, 2010           230,340,721           211,541           1,624           22,099           1,444           (9,826)            226,882                                                                                       Issue of common shares           12,903,228           96,153           -           -           -           -           96,153 Share issue costs           -           (4,333)           -           -           -           -           (4,333) Share-based payments             -           -           -           7,876           -           -           7,876 Options exercised           1,307,108           5,361           -           (1,840)           -           -           3,521 Warrants exercised           243,933           657           (27)           -           -           -           630 Net income for the period           -           -           -           -           -           10,888           10,888 Currency translation adjustment           -           -           -           -           4,650           -           4,650 Balance at December 31, 2010           244,794,990           309,379           1,597           28,135           6,094           1,062           346,267                                                                                       Share-based payments           -           -           -           8,925           -           -           8,925 Options exercised           1,963,444           5,077           -           (1,947)           -           -           3,130 Net income for the period           -           -           -           -           -           11,219           11,219 Currency translation adjustment           -           -           -           -           1,814           -           1,814 Balance at March 31, 2011           246,758,434      $     314,456     $     1,597     $     35,113     $     7,908     $     12,281     $     371,355 BANKERS PETROLEUM LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31 (Unaudited, expressed in thousands of US dollars)                                                   2011       2010 Cash provided by (used in):                                   Operating activities                                     Net income (loss) for the period           $       11,219     $       (363)   Depletion and depreciation                   8,265             4,384   Amortization of deferred financing costs                   734             683   Finance expenses (including accretion)                   1,514             753   Interest paid                   (310)             (165)   Foreign exchange (gain) loss                   (126)             69   Deferred income tax expense                   9,505             4,749   Share-based payments                   4,645             3,704   Unrealized loss on financial commodity contracts                   1,401             -   Cash premiums paid for financial commodity contracts                   (6,588)             -                     30,259             13,814 Change in non-cash working capital                   (8,012)             (1,678)                     22,247             12,136 Investing activities                                     Additions to property, plant and equipment                   (51,930)             (26,170)   Change in non-cash working capital                   5,988             5,022                     (45,942)             (21,148) Financing activities                                     Issue of shares for cash                   3,130             4,416   Short-term deposits                   -             (1,800)   Financing costs                   (26)             (152)   Decrease in long-term debt                   (5,413)             (1,667)                     (2,309)             797 Foreign exchange gain on cash and cash equivalents                   739             857 Decrease in cash and cash equivalents                   (25,265)             (7,358) Cash and cash equivalents, beginning of period                   106,619             59,495 Cash and cash equivalents, end of period           $       81,354     $       52,137 Caution Regarding Forward-looking Information Information in this news release respecting matters such as the expected future production levels from wells, future prices and netback, work plans, anticipated total oil recovery of the Patos Marinza and Kuçova oilfields constitute forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.  Exploration for oil is a speculative business that involves a high degree of risk. The Company's expectations for its Albanian operations and plans are subject to a number of risks in addition to those inherent in oil production operations, including: that Brent oil prices could fall resulting in reduced returns and a change in the economics of the project; availability of financing; delays associated with equipment procurement, equipment failure and the lack of suitably qualified personnel; the inherent uncertainty in the estimation of reserves; exports from Albania being disrupted due to unplanned disruptions; and changes in the political or economic environment. Production and netback forecasts are based on a number of assumptions including that the rate and cost of well takeovers, well reactivations and well recompletions of the past will continue and success rates will be similar to those rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce at rates similar to the average rate of production achieved from wells recompletions/reactivations/development in the past; continued availability of the necessary equipment, personnel and financial resources to sustain the Company's planned work program; continued political and economic stability in Albania; approval of the Addendum to the Plan of Development;  the existence of reserves as expected; the continued release by Albpetrol of areas and wells pursuant to the Plan of Development and Addendum; the absence of unplanned disruptions; the ability of the Company to successfully drill new wells and bring production to market; and general risks inherent in oil and gas operations. Contingent resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Prospective resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations, by application of future development projects. Forward-looking statements and information are based on assumptions that financing, equipment and personnel will be available when required and on reasonable terms, none of which are assured and are subject to a number of other risks and uncertainties described under "Risk Factors" in the Company's Annual Information Form and Management's Discussion and Analysis, which are available on SEDAR under the Company's profile at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information and forward-looking statements. Review by Qualified Person This release was reviewed by Abdel F. (Abby) Badwi, President & CEO of Bankers Petroleum Ltd., who is a "qualified person" under the rules and policies of AIM in his role with the Company and due to his training as a professional petroleum geologist (member of APEGGA) with over 40 years experience in domestic and international oil and gas operations.  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 and 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: <table border="0" valign="top"> <tr> <td> Abby Badwi   </td> <td>   </td> <td>   </td> <td>   </td> <td> President and Chief Executive Officer     </td> <td>   </td> <td>   </td> <td>   </td> <td> (403) 513-2694 </td> </tr> <tr> <td> Doug Urch   </td> <td>   </td> <td>   </td> <td>   </td> <td> Executive VP, Finance and Chief Financial Officer   </td> <td>   </td> <td>   </td> <td>   </td> <td> (403) 513-2691 </td> </tr> <tr> <td> Mark Hodgson   </td> <td>   </td> <td>   </td> <td>   </td> <td> VP, Business Development      </td> <td>   </td> <td>   </td> <td>   </td> <td> (403) 513-2695 </td> </tr> </table> <p> Email: <a href="http://investorrelations@bankerspetroleum.com">inve</a><a href="mailto:investorrelations@bankerspetroleum.com">storrelations@bankerspetroleum.com</a><br/> Website: <a href="http://www.bankerspetroleum.com">ww</a><a href="http://www.bankerspetroleum.com">w.bankerspetroleum.com</a> </p> <table border="0" valign="top"> <tr> <td> <b><i>AIM NOMAD: </i></b> </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Canaccord Genuity Limited </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Ryan Gaffney/ Henry Fitzgerald-O'Connor </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> +44 20 7050 6500 </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> <b><i>AIM JOINT BROKERS:</i></b> </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td> Canaccord Genuity Limited       </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td> Macquarie Capital Advisors </td> </tr> <tr> <td> Ryan Gaffney/ Henry Fitzgerald-O'Connor     </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td> Ben Colegrave/Paul Connolly </td> </tr> <tr> <td> +44 20 7050 6500        </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td> +44 20 3037 5639 </td> </tr> </table>