Bankers Petroleum Ltd. on Friday 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."
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 No. 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 No. 35-1H in April, which offsets the Nickel Hill No. 1-26 discovery well.
- A pipeline connection and surface tie-in was negotiated for the Nickel Hill No. 1-26 vertical well and the Greenway No. 35-1H horizontal well. A facility to handle production is expected to be completed for tie-ins this summer.
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.