Bankers has taken over 50 wells since the beginning of the year and work is proceeding on further engineering and land acquisition for facilities in 2007. Of the 50 wells taken over, over 35 wells have been placed on production, increasing current production 50% to approximately 3,450 bopd from 2,302 bopd at December 31, 2005. Based on the success and production to date, Bankers is revising its 2006 projected exit production rate to approximately 4,200 bopd from 3,800 bopd.
"Albania continues to provide substantial growth for the Company, supplying a solid backbone for the Company," said Richard Wadsworth, President. "Our activities this year have increased current production to approximately 3,450 bopd. As a result of our success, we're well positioned to exceed our previous production targets and increase cash flow for the year."
Higher production combined with export sales prices will increase cash flow for 2006. Bankers' exposure to possible downturns in crude oil prices is mitigated by its two sales contracts. The local Albanian sales contract incorporates ceiling and floor prices determined by a formula which is referenced to the price of Brent crude oil. The export contract is directly linked to Brent prices, however, based on current formula and export volumes, the Brent price would need to fall below US$55 per barrel Brent before impacting the Company's budgeted revenue for 2006. Brent crude price is currently trading at over US$70 per barrel.
The recent revision to Bankers' 2005 reserve report (National Instrument 51-101F1) had no changes affecting the previously reported reserve quantities and the associated economic values. The proved plus probable reserves were estimated by independent engineers at 88 million barrels (net of royalties), which are valued at US$290.5. This is based on constant price and cost assumptions on an after-tax basis, using a discount rate of 10%.
Bankers is committed to its operations and growth in Albania. Through reinvestment in the country, the Company is working towards the long-term future of the project and the community in Albania.
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 gas 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.
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