Bankers Continues Trend of Improved Results in Q2
Bankers Petroleum Ltd.Bankers Petroleum Ltd. on Monday said that its second-quarter results improved significantly. Revenue for the quarter more than doubled to $7.4 million compared to $3.0 million in the second quarter of 2005. Funds from operations were $3.3 million, compared to cash used in operations of $200,000 for the comparable period in 2005.
"We continue to achieve significant improvements in our operations quarter-over-quarter," said Richard Wadsworth, President. "In the second quarter, our activities resulted in improved netbacks, resulting from primarily reduced operating expenses and strong production gains in Albania. This brought our June exit production to 3,500 barrels of oil per day (bopd) and contributing to our current production of approximately 4,000 bopd."
Mr. Wadsworth continued, "With the addition of the assets and information gained through the acquisition in the United States, we have been able to substantially advance our exploration program in the Palo Duro Basin to the next stage - fracture stimulation of several wells to further define the basin's potential. In addition, we're initiating exploration programs in the Oklahoma Woodford shale and New York Trenton Black River shales acquired from Vintage. Our goal is to define and establish sustainable domestic production in one of these projects, at a minimum, by the end of 2006."
Second Quarter Highlights:
- Average production increased 109% to 3,193 bopd from 1,527 bopd for the same period in 2005, and 24% compared to 2,579 bopd for the first quarter of 2006.
- Oil and gas revenue rose 148% to $7.4 million from $3.0 million in the comparable period in 2005, and 30% from $5.7 million in the first quarter of 2006.
- The netback in Albania improved to $11.09 per barrel from $8.51 in the preceding quarter and $6.04 per barrel for the same period in 2005.
- Funds from operations increased to $3,251,000 from $723,000 for the three months ended March 31, 2006. The Company used $200,000 of cash in operations for the second quarter of 2005.
- In Albania, average production per well increased to 38 bopd from 33 bopd in the preceding quarter.
- The Company exported approximately 26% of its crude during the second quarter. Subsequent to the quarter, Bankers negotiated a new price formula for its oil exports under the existing contract with the same Italian refinery.
- The Company revised its 2006 projected exit production rate to approximately 4,200 bopd from 3,800 bopd.
- In the United States, the Stansell #1 well was spudded and has reached its total depth of 9,800 feet. Total original gas in place from three shale intervals was 78 bcf per section.
- Bankers acquired approximately 250,000 net acres of unconventional assets in the United States for $30 million. An additional $1.0 million cash payment, along with approximately 30,000 net acres, will be transferred to third parties to settle competing claims.
- Subsequent to the quarter, the Company initiated the first of two fracture stimulations in the Misener #1 well. The fractures are underway and results are anticipated in several weeks.
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.
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