Bankers Petroleum (BNK) - Oil Manufacturing

Anyone still holding these?

http://www.bankerspetroleum.com/en/components/investor/bnk-presentation-2012-june_final1.pdf

2012 Average Production to date 14,000 bopd, sp trashed, reckon they now have market cap circa £270m.

Interested in people's thoughts, seems to me that more than most their capex is going to be particularly badly hit by fall in POO.

Now listening to the podcast. Not at present invested but feel I should be. I will have to listen and read tomorrow.

http://www.newswire.ca/en/webcast/detail/902171/962215

Q4 2011 Operating update.

http://www.investegate.co.uk/article.aspx?id=20120109130000P3DF4&fe=1

Not even come close to having a chance to read it today (:

Q3'11 results released on website

http://www.bankerspetroleum.com/en/components/investor/pr_2011_third_quarter_november_11_final.pdf

Highlights for the quarter ended September 30, 2011 are:

• Production averaged 13,667 bopd, an increase of 39% compared to the same period in 2010. Current production is 14,750 bopd.
• In the third quarter of 2011, revenue increased by 10% to $93.7 million ($74.48/bbl) from $85.2 million ($77.03/bbl) in the previous quarter and by 122% from $42.1 million ($46.61/bbl) in the third quarter of 2010.
• Net operating income (netback) was $44.9 million ($35.71/bbl) in the third quarter of 2011, compared to $47.2 million ($42.72/bbl) during the second quarter of 2011 and $19.6 million ($21.74/bbl) in the third quarter of 2010.
• Funds generated from operations were $42.6 million in the third quarter of 2011 compared to $42.9 million in the second quarter of 2011 and $16.3 million in the third quarter of 2010.
• During the third quarter of 2011, capital expenditures were $65.1 million. The Company drilled sixteen (16) horizontal wells, a vertical cored delineation well, two (2) thermal horizontal wells, and two (2) water disposal wells, as well as reactivated 19 wells in addition to other related infrastructure/expansion projects. During the same period of 2010, capital expenditures were $27.5 million.
• New export market agreements for 2012 have been agreed at higher average price levels than the current year crude oil contracts. ARMO, the Albanian refinery, also agreed to purchase Patos-Marinza crude in 2012 for a significant realized average price increase from the current year contract. The 2012 pricing agreements represent an average 7% increase over the 2011 Patos-Marinza oil price.
• The Company continues to maintain a strong financial position with cash of $53.2 million and working capital of $73.5 million at September 30, 2011. Working capital for December 31, 2010 and September 30, 2010 was $130.9 million and $138.8 million, respectively.

Due to report earnings tomorrow, and has been on quite a streak the last while - it's outstripped my other oil shares lately, despite not having had any news I've noticed.

Yep, spoiled for choice on the daftly priced front. Problem is I expect them to become even more daftly priced as sentiment deteriorates further.No more top ups from me for the time being. Plenty of companies on the watchlist :)

I'm turning the sofa upside down and putting a kidney on EBay - I have to do a top-up!

Thanks for posting the link Fangorn.

Like, oh, I dont know, 10, 20, 50? companies out there they look daftly priced.

Solid progress operationally, production up to 14,250 bopd, Sales agreements for next year done at 72.5% of Brent (up from $ 66 IIRC).

Conference call later.

Q3 operational update from Bankers.

http://www.investegate.co.uk/article.aspx?id=20111004070000P7FDE&fe=1

Still not taken the plunge here myself,am hoping for significantly lower entry than current (which looks more likely given the panic that seems to be around in the market these days)

Hiya JPGH,

It's been one I've followed but was never willing to pay a four handle on, let alone 500 to 600p/sh. I saw that DJP commented back in July, slightly lower production rates than he expected.(That is the small failure I take it?). A continuous failure to hit targets(as long as they are only small undershoots) seem to be heavily punished in current markets - but provide the perfect time for some value fishing.

Ah I didn't realise they were exposed to TSX illiquidity - remember reading something in one of those Canadian financial mags over July when i was in Ottawa(Sell Rec I recall)

Thanks for your comments, appreciated. Will look to Toronto as, despite the three ticks against you mention, I feel that they have fallen way too far(the possibility of a takeover by a semi NOC would be the icing on the cake)

I quite like Bankers but is it really that cheap? Soco is only 47% more expensive but a lot more than 47% better....

I would suspect until it can show it can meet its production forecasts it will lag behind. 12000bopd isnt much better than what Antrim predict they will have on production within a year or 2 and Antrim is only worth 100milGBP or so.... (the reserves are, um, rather different though)

I want Bankers to do well - my father has a position in it. ;) I would be grateful if anyone could convince me of its hidden merits....

Leek

Fangorn
I have a few of these bought in 209 & 2010 with a couple of top ups in 2011.

The SP is in the doldrums a bit mainly due to the continuous failure to meet targets (when I say failure I mean failure by a small amount) and lack of development on the SAGD front where trails were promised in 2010 that stil in 2011 have not happened. Also teh share is traded in Canada with a paltry 3000 to 6000 or so shares traded in London hence the share is at the mercy of the TSX herd mentaility. So thats 3 ticks against!!

On the plus side BNK just keep on producing the heavy oil, export via their own pipeline to their own terminal and have long term contracts with BP (?) to take the heavy crude. It's sold at a large discount to Brent but the netback is good and development costs are low. The reserves are enormous and its only a matter of time before BNK get taken out probably by one of the semi-NOCs. In the meantime the balance sheet will get more and more impressive.

Buy in Toronto though as London spread is awful

JPGH

I've been taking another look at this as have just noticed it is well off its highs for the year, and considerably lower than it was around May/June (circa 450p mark). They do seem to have been hit quite badly by the market panic that started 13 days ago. culminating in 4 days off large sell offs.

August 2nd quarter results looked fairly good to my untrained oil eye...

http://moneyam.uk-wire.com/cgi-bin/articles/20110812070000P1512.html?epic=BNK

Average production

(bopd)  12,1529830+24%12,0249060+33%

Its financial position remained strong with $81m in cash and minimal long-term debt of $31m.

@ 275p/sh currently, after today's nice rise, this still seems very cheap.

Any "oily experts" with a more in depth opinion as I'm very tempted. Blvn @ 120p/sh is also looking attractive as a bottom fishing play....

p.s Apologies if I've missed disucssion elsewhere on this one but I've been otherwise engaged the last two months or so enjoying the delights of Kenya, Canada and Scotland..and have spent little time following the markets to the extent I normally do.

p.p.s Tried formatting the financials four times,reinputing from scratch but seem to be unable to get a decent layout. (:

Ouch - and there's the fall, in relation to the downwardly-revised 2011 exit production rates. Despite the considerable progress with infrastructure and new wells/reactivations, etc... made over the last 18 months I'm back to where I started...

BNK issued the Operational Update for Q2.

As ever there will be a conference call, presentation and Q&A session:

Conference Call

The Management of Bankers will host a conference call on July 6, 2011 at 7:00am
MDT to discuss this Operations Update. Following Management's presentation,
there will be a question and answer session for analysts and investors.

To participate in the conference call, please contact the conference operator
ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A live audio
web cast of the conference call will also be available on Bankers website at
www.bankerspetroleum.com or by entering the following URL into your web browser
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3591060. The web cast
will be archived two hours after the presentation on the website, and posted on
the website for 90 days. A replay of the call will be available until July 20,
2011 by dialing 1-800-642-1687 or 1-416-849-0833 and entering access code
80070287.

My take:

Slightly disappointing in some respects with production coming in about 1200 bopd light due to shut ins. 12,152 bopd vs 11,894 in Q1. Currently doing 13,150 bopd. Not that one cargo of 54,000 bopd was delayed by 3 days so will fall into the next Q. That is equiv to c 600 bopd for the Q. Basically the ship was late.

Now guiding for a 2011 exit production rate of 16,000 to 20,000 bopd with 18,000 seen as the most likely.

On the positive side, realised price was $77 per bbl. 13% up on Q1 realisations.

Fourth rig is in country and operating (first well spud early June) with a fifth due to begin ops in October.

The company is estimating 79 horizontals and 82 well reactivations in 2011.

One problem has been a lack of service rigs - more service rigs are being sourced and more water disposal wells will be drilled as well.

Good news on the Northern Gorani area where two wells were drilled and produced at 175 bopd average. With the completion of the Serman bridge expected in December, activity here can then be stepped up in this higher productivity area.

Infrastructure developments are all proceeding well.

The Thermal program is progressing - first delineation well is due to be drilled this month  followed by two horizontals with the first 60 day steam cycle scheduled for September.

Summary

As ever with BNK a mix of good news and progress with a small hiccup but then again, that is understable given the scale of the operations there (no of wells etc). Everythign still moving nicely ahead with good production and the thermal project looming ever closer. Still maintain that, when (if) the thermal project is competed ssuccessfully, proving up much more recoverables, the management team will look to exit selling to a NOC in all likelihood.  Okay, its not the most dynamic of companies and it isnt going to multibag but theres still very good upside for the patient IMO.

Bankers has been presenting at the latest First Energy Global Energy Conference.

http://www.firstenergy.com/conference_details.php?conf_id=90&webcast

There are links there for the webcast as well as a note from First Energy.

Id encourage people to have a glance at the list of companies presenting as there are a lot of names familiar to this site. Also some others that arent perhaps so well known but interesting nevertheless (IMO)

I should say that once again, First Energy have done a sterling job with the conference and the companies attending.

Bonus points for them for deciding that, in response to the Wildfires hitting Slave Lake in Alberta, they have decided to donate all commissions from today to the Canadian Red Cross as the agent for disaster relief in connection with the wildfire.

First Quarter FInancial and Operational Results issued.

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 http://www.bankerspetroleum.com/.

1st quarter production and sales numbers released (strangely only on PR Newswire so far, and not on RNS):

 BANKERS PETROLEUM ACHIEVES RECORD PRODUCTION IN THE FIRST QUARTER OF 2011

Current production rate exceeds 13,500 bopd

CALGARY, April 7 /PRNewswire/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to announce the following operational update:

Production and Oil Price

Oil sales from the Patos-Marinza oilfield in Albania during the first quarter averaged 11,894 bopd compared to fourth quarter sales of 10,424 bopd, an increase of 14%. Average production for the first quarter was 12,147 bopd and oil inventory on March 31, 2011 was approximately 168,000 barrels. Current production is 13,550 bopd. Gross sales achieved record levels for March, averaging 15,247 bopd.

The Patos-Marinza first quarter average oil price was US$68.06 per barrel (representing 65% of the Brent oil price) an increase of 28%, compared to the fourth quarter's average oil price of US$53.12 per barrel (61% of Brent).

Drilling Update

Sixteen (16) horizontal wells have been drilled during the first quarter. Thirteen (13) of these wells have been completed and are on production, two (2) drilled late in March will be placed on production this month, and one (1) drilled early in the quarter has water encroachment concerns that are being mitigated with continuing water control activities. Production rates from the last thirteen (13) horizontal wells drilled is averaging 175 bopd per well with strong initial production from the Driza (D1) sands averaging in excess of 200 bopd per well. Average production for all horizontal wells is 130 bopd per well at the end of the first quarter.

The fourth drilling rig is expected to arrive in Albania later this month and scheduled to commence drilling in May 2011. With strong oil prices, the Company is also sourcing a fifth drilling rig and expects to have one available in the fourth quarter of 2011. The additional rig capacity will support the Company's strategic drilling objectives of wells targeted for production growth and other wells planned for reserves expansion, the thermal pilot and for exploration and water disposal drilling.

Well Reactivations

Reactivation and recompletion work resumed in the first quarter with eight (8) wells on production. Current production from these wells is 250 bopd and improving.

With the recent Company announcement to acquire the remaining 140 active Albpetrol wells and sole operatorship of the Patos-Marinza oilfield, Bankers will have a larger inventory of reactivation candidates for the 2011 capital program and for the following few years.

The current production split is 7,700 bopd from new horizontal wells and 5,850 bopd from the original reactivated vertical wells. Ongoing reactivated production from the old vertical wells is offsetting primary production declines and maintaining the old vertical wells base production. Primary production growth is forecast to be achieved from the new horizontal wells drilling program.

Thermal Program & Exploration Block "F"

Road access and site construction plans are underway for the drilling and thermal facilities project. All necessary materials and equipment are in country. Drilling of the one (1) delineation and two (2) thermal wells will commence in May and first steam injection is scheduled for July 2011.

Seismic reprocessing and interpretation on Block "F" is progressing and drilling of the first gas exploration well is expected in the third quarter. Several structural and stratigraphic prospects have been identified.

Infrastructure Development

Construction of 80,000 barrels of additional storage at the Petrolifera Terminal at the Port of Vlore is now complete and fully operational. Bankers' total port storage capacity from three tanks is 160,000 barrels and the Company will now be able to handle export shipments of up to 25,000 metric tonnes in a single cargo.

Construction on the first phase of the crude oil sales pipeline, which connects the Patos-Marinza oilfield to the storage and loading Fier Hub facility, is progressing and the project is scheduled for third quarter 2011 completion.

Construction of the third and fourth oil treating train expansion of the Central Treatment Facility (CTF) has commenced. The addition of the new processing facilities should be completed by the fourth quarter 2011 and the expanded CTF will be able to handle over 25,000 bopd of net oil production.

Construction of a bridge over the Seman River in the northern area of the Patos-Marinza oilfield has commenced with completion expected in the third quarter of 2011, in time to begin a larger drilling and re-activation program in the higher productivity area north of the river.

 

 All progressing rather nicely...

And Dundee:

And I think I'll leave it at that. Seems to be general consensus that its a solid enough deal that should bring benefits.

And GMP:

• We will confirm with management if the US$34 million in incremental to the US$215 million capex but we believe that the acceleration of development further supports the company achieving its 2011 target exit production rate of 20,000 b/d.

 

• BNK is expected to provide an update on April 7th.

 

OUR VIEW: We are encouraged by this morning’s announcement as the company had previously mentioned that it may chose to accelerate its agreement with Albpetrol. BNK will now be the sole operator of the field and will be and will be able to accelerate field reactivation and development which we believe is the highlight of the new arrangement.

Okay, first analyst comment Ive seen is from Canaccord.

On a flowing barrel basis, this transaction doesnt appear particularly accretive at $60k/£85.5k per flowing bbl (ex/incl environmental payment).

So pretty much as SM and I agreed then.

The ability to mange the field to Western standards and have a much larger inventory of candidates to redvelop is the real value of this transaction in our view.

Maintain Buy with $14 target.

Stock is moving ahead so guess that's the view they are taking.

Seems it may be quite a long payback period with a netback of around $22/bbl ?

400 bopd = 146,000 bbl/yr = $3.2m per yr.

Just going to sharpen my pencil on my sums. Any thoughts on the deal?

Interesting RNS out re Agreement with Albpetrol.

Excerpt:

CALGARY, March 31 /CNW/ - Bankers Petroleum Ltd. ("Bankers") is pleased to

 announce that it has reached an agreement with Albpetrol Sh.A. ("Albpetrol"),

 the Albanian national oil company, to accelerate the takeover of production and

 royalty payments for all remaining Albpetrol active well production and also

 the expansion of the project area and development plan to include all of the

 contract area of the Patos-Marinza oilfield concession. Effective March 31,

 2011, Bankers will become the sole operator and Albpetrol will cease to conduct

 all petroleum operations in the Patos-Marinza oilfield and contract area.

 

 Total consideration for the takeover rights of 140 active wells, with current

 production of 400 bopd, retention of the associated pre-existing production

 ("PEP") royalty and sole operatorship of the contract area, is US$24 million

 plus an additional US$10 million payment for environmental stewardship and

 social retrenchment. In accordance with Bankers' existing Petroleum Agreement,

 Albpetrol shall retain all liabilities and obligations for legacy environmental

 damages in the contract area.

Before Darron gets there!

BANKERS PETROLEUM ANNOUNCES AGREEMENT WITH ALBPETROL

http://www.investegate.co.uk/article.aspx?id=20110331130000P2769&fe=1

Bankers to take control of Albpetrol's 140 active wells in the Patos-Marinza area producing 400bopd for US$24 million plus an additional US$10 million payment for environmental stewardship and social retrenchment.

No surprises, I think - even unleashed there's only so fast a tortoise can go. I don't recall seeing the 20,000 bopd target for end of 2011 before, but apart from that I can't see anything to get either concerned or excited about, and given that the SP closed at exactly the same place it did yesterday I don't think anyone else does either.

http://www.investegate.co.uk/article.aspx?id=20110322120000PAB9B&fe=1


Results at a Glance (US$000, except as noted)
Change 2010 2009

-------------------------------------------------------------------------

Oil revenue 97% 170,376 86,614
Net operating income 158% 81,103 31,496

Net income (loss) 96 x 14,265 (150)

Funds generated from operations 188% 73,166 25,422
Capital expenditures 218% 122,012 38,324

Average production (bopd) 49% 9,597 6,438
Average price ($/barrel) 32% 48.64 36.86
Netback ($/barrel) 73% 23.15 13.40


Reserves in Albania increased at all levels: a 30% increase in the Original-Oil-In-Place (OOIP) assessment to 7.8 billion barrels from 6.0 billion barrels, an increase of 30% to 120 million barrels of proved reserves and, an 11% increase to 238 million barrels of proved plus probable reserves. Additionally, the Company's independent
reservoir engineers assigned contingent and prospective resource oil estimates of 1.2 billion and 540 million barrels, respectively.


Look pretty good to me. I'll leave it to the experts though to dissect it and comment in depth.

Final Results just issued.

Bit snowed under so wont be able to offer any opinions today.

I should add that the "learning curve" on the reactivations has been that many of the old wells have had casing failures and so BNK have decided to drill new horizontals as opposed to reworking the old wells.

As a consequence of this, the 2P development plan now envisages 624 new horiontals (up from 260) and reactivations down to 310.

One thing I have picked up on is that the management seem to be at odds witht he auditor over the decline rates on the horizontals. The Auditor has pencilled in declines of 30-35%. No clear decline rate has been established for the new horizontals but they say it certainly isnt as steep as the range implied by the auditor.

Hi DJP

Looking at your quote it does look positive. Why do you think the Canadian market took it so badly?

Leek

Right - Just released the 2010 Reserves Report.

All seems positive on first light scan.

Some Highlights:

Total Albania Reserves Summary

    -   Proved reserves ("1P") of 120 million barrels (30% increase from

        December 31, 2009) representing over eleven times production

        replacement

    -   Proved plus probable reserves ("2P") of 238 million barrels (11%

        increase from December 31, 2009)

    -   Proved, probable and possible reserves ("3P") of 427 million barrels

        (1% increase from December 31, 2009)

    -   Mean original oil in place resource estimate ("OOIP") of 7.8 billion

        barrels (30% increase from December 31, 2009)

    -   2010 production was approximately 3.5 million barrels

Patos-Marinza Field

    -   1P reserves increased 30% to 117 million barrels of oil from 90

        million barrels at December 31, 2009

    -   2P reserves increased 11% to 226 million barrels (December 31, 2009 -

        203 million barrels)

    -   3P reserves increased 1% to 395 million barrels (December 31, 2009 -

        390 million barrels)

    -   Original oil in place estimate (P50) increased 32% to 7.5 billion

        barrels (December 31, 2009 - 5.7 billion barrels)

    -   All of Patos-Marinza's 2010 recoverable reserves estimates are from

        primary recovery methods only

The 2010 reserves growth is primarily attributable to the expansion of the
Company's horizontal drilling program in new areas of the field and new zones
within the field area. This is reflected in the upgrade of 2P and 3P reserves
into 1P and 2P reserves category, respectively, and the expansion of 3P
reserves and oil in place.

Patos-Marinza Contingent and Prospective Resources

RPS has also updated the Contingent and Prospective Resource oil estimates for
the Patos-Marinza oilfield as at December 31, 2010. Contingent and Prospective
resources are based on thermal development technologies to be applied to the
Gorani and Driza formations and secondary water flood methods proposed for the
Marinza formation and expansion of the development areas, primarily to the west
of the current development.

The thermal pilot first steam injection is scheduled for the third quarter of
2011. There are no current water flood plans for the field.

Contingent resource for 2010 is 1.2 billion barrels, compared to 838 million
barrels in 2009

Prospective resource for 2010 is 568 million barrels, compared to 384 million
barrels in 2009

The Tortoise is hibernating ?

Anybody any idea why this has been on a downward path of late?

Thanks for pipping me to the post again SM ;-)

Very steady progress across the board.

Of particular interest is, of cours,e the progress with the pipeline. thats due to start imminently and should complete in 4 to 6 months. This will enable BNK to obtain higher netbacks due to lower transportation costs. Also noteworthy the plan to add a further train to the Central Treatment Facility to expand capacity to over 20k bopd. Starts in Q2.

As ever, there is a conference call for those interested and the January Presentation is available on the website. 4.95meg btw.

Conference Call

The Management of Bankers will host a conference call on January 11, 2011 at 8:
00am MST to discuss this operational update. Following management's
presentation, there will be a question and answer session for analysts and
investors.

To participate in the conference call, please contact the conference operator
ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A live audio
web cast of the conference call will also be available on Bankers website at
www.bankerspetroleum.com or by entering the following URL into your web browser
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)3362040

The web cast will be archived two hours after the presentation on the website,
and posted on the website for 90 days. A replay of the call will be available
until January 25, 2011 by dialing 1-800-642-1687 or 1-416-849-0833 and entering
access code 36490625.

Record Production in the Fourth Quarter of 2010

Production and Oil Price

Oil sales from the Patos-Marinza oilfield in Albania during the fourth quarter
averaged 10,424 bopd compared to third quarter sales of 9,826 bopd, an increase
of 6%. Average production for the fourth quarter was 10,838 bopd and oil
inventory on December 31, 2010 was approximately 145,000 barrels. The exit
production rate for 2010 exceeded 12,100 bopd. Sales achieved record levels for
December, averaging 13,500 bopd.

The Patos-Marinza fourth quarter's average oil price was US$53.13 per barrel
representing 61% of the Brent oil price, compared to third quarter's average
oil price of US$46.61 per barrel (61% of Brent), an increase of 14%.

Plenty more in the RNS also on:

• Drilling Update
• Well Reactivations
• Thermal Program
• Infrastructure Development
• Kucova
• Environmental Initiatives
• Liquidity
• Conference Call - 11 Jan, 8am MST (webcast available for 90 days thereafter)

Unleash the Tortoise !  ;o)

Broker Note from RBC (Al Stanton) - Unleashing the Tortoise.

Development-led play offers steady production and value growth in 2011; upgrading to Outperform, Above Average Risk, with a $10 Target Price

An oil price play:

In addition, we would note that Bankers is the most leveraged oil price play in our universe - a $15/bbl swing in the long-term oil price outlook would change our NAV by ~29%.

db (no position)

Having recently taken a modest position I'm not displeased and hopefully it will be a steady climb throughtout the year.

BNK seems to be well under the radar though.

Odd little spike for BNK this morning (well, morning in Canada). Currently up 5%, flirting with C$8, with half average daily volume gone through in the first hour or so of trading. Can't see any news . . .

Hi SM

In short, yes.

The production shortfall this year wasn't great but reasonable explanation - due to the hand overs etc.

4 rigs banging out standard horizontals should be a problem.

Key is the EOR programme - start up of Steaming (first cycle in May) and the waterflood project could/should see a big reserves increase. That's the only mystery for the company, the bog standard play is a simple sell. Prove up the EOR based reserves and its off to the races.

On the figs for capex, they shouldn't need the loan facility due to cashflows etc.

I think the end 2011 target is more conservative this year.

Once mystery is cleared away then time to cash the chips I'd say.

D

Bankers Petroleum (LON:BNK) have announced their 2011 capital budget and work program today. 

Headline figure is an increase in excess of 40% of the 2010 expenditure, to $215m, with a 2011 exit-production rate target of 20,000.  The Company's current production is 11,400 bopd.

Checking back in the Q2 results, the Company expected a 2010 exit rate of 15,000bopd, so these numbers seem highly aspirational and obviously dependent on many factors in the field.

DJP - do you still see BNK as a takeout target in 2012?

You can also spread bet the Toronto version of Bankers through IGindex.

w

That's about the size of it. Brokers who aren't able to offer multi country exposure are to be avoided for anyone serious about resources imo. The UK market is sadly lacking in terms of the companies with decent exposure to some of the better prospects. Penny punts yes, medium sized companies with good prospects for multibagging? Not really.

TD is pretty good for trading international shares....Asian, Canadian, US ..

D

Thanks for the advice.

Don't think Fastrade will let me buy Canadian shares.

I hold EO. (have done for quite some time), and tried to get some SLG but they siad they couldn't buy Canuck shares for me.

Maybe time for another trading account?

S

S

The Aim quote is basically dead. If there's 5 trades over here its a busy day. BNK should terminate it imo.

That said, NMS is 1000 shares so there should be a trade if you want to buy.

I'd suggest that its better to just buy the Canadian line where there's $Millions of stock traded each day.

Not having the benefit of L2... can anyone tell me NMS or availability for these?

I'm finding is hard to buy BNK shares. I tried many times yesterday using Fastrade. Admittedly I didn't try setting any limits but I feel it is a bit like fishing in the dark as I can't see any trades at all on AIM. Does it also trade on Plus?

All ideas and info treated with appreciation!

S

Am slightly perturbed that they have dropped the usual table of production, costs, oil price, netback, etc...

All I can garner from this update is Production, Brent Oil price and the Patos-Marinza price - the RNS does not mention Operating Costs, Transportation, Royalties and Netback as they have announced for the last three quarters. perhaps they used the Q3-09 template that had no table?!?

At least I could work out the 12-month running production...

Latest Operational and Corporate Update

Theres a lot of info in this, some of it a touch disappointing some of it quite good. It is (IMO) an essential read though for those either in or looking at BNK as a holding.

Conference Call

The Management of Bankers will host a conference call on October 7, 2010 at 7:
00am MDT to discuss this operations update. Following Management's
presentation, there will be a question and answer session for analysts and
investors.

To participate in the conference call, please contact the conference operator
ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A live audio
web cast of the conference call will also be available on Bankers website at
www.bankerspetroleum.com or by entering the following URL into your web browser
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)3252260.

The web cast will be archived two hours after the presentation on the website,
and posted on the website for 90 days. A replay of the call will be available
until October 21, 2010 by dialing 1-800-642-1687 or 1-416-849-0833 and entering
access code 16045644.

A new corporate presentation is out on the website.

Also a list of the conferences that the company is attending in the coming days (including the First Energy/Soc Gen one in London next Monday).

Good to see that the company is providing webcasts (details in the RNS re conferences).

Slightly off topic but ....

http://podcast.newswire.ca/en/

maybe some of you haven't seen this, but if you're in the car, travelling or doing routine things, this source of podcasts might prove interesting. I've just downloaded the latest from Sterling Resources; Talisman and Bankers Petroleum.

HTH somebody,

repobear

nigelpm, tenary

enabled TSX (and ASX too). Ta for the tip.

JPGH

JPGH - I don't think it's a one off. Have you enabled TSX data feed and looked in Finder under Shares - Canada ?

Mike

Tenary

must be a special one off. I looked just now on my IG Index a/c and could not get a price/quote. IG did this for me a few years ago for Falcon Oil and Gas but I could never find an "official" quote for the deal they gave me.
I will call them monday for a Bankers quote.

JPGH

Been looking at this one recently, and yesterday talked to IG index about it. The first thing I hadn't realised was that IG do offer a number of TSX and ASX shares but you have to enable the data feeds (my account/enable data feeds) - although BNK was not on the list. However,provided the Market Capitalisation is adequate (I think about $250 million US)and as the initial punter you are prepared to take a position equivalent to at least $10,000 US in the underlying shares they will normally add a share to their available spreadbet lists. I am delighted to say that as a result the TSX BNK listing is now on IG, in Canadian Dollars, with positions in dollars per 1 cent point (eg at $7 share price, $10 per point (the equivalent of 1000 shares) equates to an exposure of $7,000, roughly £4,400). The other thing to remember is that the TSX opens at 2.30 UK time.

Mike

Nope; I've got an interest in these also, as of 2 weeks ago - just annoyed that I didn't wait a week longer and I'd be 20% up as opposed to about 7% down....... hey ho, in it for the long term etc etc.....

Thanks for the continuation of interest Darren and SM. I sold out and am maintaining an interest, so thinking that it could go no further downwards I put in a limited price buy today as it plunged south and bought much lower than I expected. I am determined to hang on and will add gradually from now.

Beat me to it, Darron! All appears to be on course still, and look forward to the start of the thermal injection pilot.

Half-yearly report just released:

Production

Second quarter production averaged 9,830 bopd from the Patos-Marinza oilfield in Albania compared to first quarter production of 8,282 bopd, an increase of 19%. The exit production rate for the quarter was 10,100 bopd and current production is 10,300 bopd.

The average Patos-Marinza oil price was US$47.12 per barrel representing 60% of the Brent oil price compared to the first quarter's average oil price of US$47.16 per barrel (62% of Brent). The lower realized wellhead price is due to the resumption of domestic sales in the second quarter. Oil sales into the domestic market realize similar netbacks as export sales when the additional transportation and export terminal costs are considered.

Q2 results issued.
A fourth rig is being tendered for - to start work in 2011 Q1

15000 bopd for end of 2010 targetted.

Intriguingly looking to get involved witht he privatisation of Abpetrol (tender docs to be released in Dec 2010.

Still looks a complete "no brainer" to me.

Conference Call

The Management of Bankers will host a conference call on August 13, 2010 at 8:
30am MDT to discuss results and this operations update. Following Management's
presentation, there will be a question and answer session for analysts and
investors.

To participate in the conference call, please contact the conference operator
ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A live audio
web cast of the conference call will also be available on Bankers website at
www.bankerspetroleum.com or by entering the following URL into your web
browser: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)
3182960

The web cast will be archived two hours after the presentation on the website,
and posted on the website for 90 days. A replay of the call will be available
until August 27, 2010 by dialing 1-800-642-1687 or 1-416-849-0833 and entering
access code 93567595.

Extracts from RNS:

Highlights for the quarter ended June 30, 2010 are:

    -   Average production was 9,830 bopd, an increase of 54% over the same

        quarter of 2009 and an increase of 19% over the first quarter of

        2010. The June 30, 2010 exit production was 10,100 bopd.

  

    -   Revenue increased by 20% to $42.1 million ($47.12/bbl) in the second

        quarter of 2010 from $35.1 million ($47.16/bbl) in the first quarter

        of 2010 and by 110% from $20.1 million ($34.63/bbl) in the second

        quarter of 2009.

  

    -   Net operating income (netback) increased by 30% to $20.4 million

        ($22.76/bbl) in the second quarter of 2010 from $15.6 million

        ($20.98/bbl) during the first quarter of 2010. Netback for the second

        quarter of 2009 was $7.0 million ($12.00/bbl).

  

    -   Funds generated from operations (cash flow) increased 36% to

        $18.8 million in the second quarter of 2010 from $13.8 million over

        the previous quarter and by 213% from $6.0 million in the same

        quarter of 2009.

  

    -   Bankers continues to maintain a strong balance sheet with cash of

        $57.4 million and working capital of $59.4 million at June 30, 2010.

Drilling Update: (why cant some UK companies be this clear?)

The Company continued execution of its horizontal drilling program targeting
different productive zones and areas to fully evaluate the reserves potential
of the Patos-Marinza oilfield. Eleven horizontal wells drilled during the
quarter resulted in ten oil wells currently on production and one well
suspended due to water intrusion. One vertical thermal core well and one water
disposal well were also drilled during the quarter.

At June 30, 2010, there were 32 horizontal wells, 30 are on production with 24
wells producing between 75 and 240 bopd, with current average production of 145
bopd, as compared to last quarter's average of 160 bopd and higher than the
forecast average of 135 bopd. Six active horizontal wells are producing at an
average rate of 30 bopd, including the first Marinza well and five Driza wells
that have lower production due to previously described mechanical issues,
specifically short laterals within the producing section in three wells and
drilling deviations in and out of the zone in two wells. Two wells remain
suspended pending water control measures in offsetting old wells.

Optimal horizontal drilling locations recognized by the Company are in the
northern portion of the field, however a winter and spring of unusually heavy
rains in Albania prevented lease construction and expansion of the drilling
program northwards during that period. With the current summer conditions,
construction of two larger elevated drilling pads in the northern region is now
complete, each capable of accommodating multiple wells. The Company will now
accelerate its drilling operations in these areas where multiple oil bearing
formations have exhibited virgin reservoir pressure conditions. The third
drilling rig, with similar drilling depth capabilities as the first "Crosco"
rig, has arrived in Albania and is currently drilling its second well. These
two "Crosco" rigs will develop the deeper northern area of the field.
Subsequent to the end of the quarter, two wells have been drilled on the
northern pad, the first of which has been brought on production at 240 bopd.

The acquisition of the third rig will also provide the opportunity to commence
the testing of the western field extension utilizing the original "Simmons" rig
while maintaining the number of horizontal wells that are planned for 2010.
This drilling program commenced in late July and this rig will continue to
develop the shallower horizontal targets including the D1 formation that has
yet to be tested with horizontal wells. The D1 formation has historically been
one of the main targets in the Company's well takeover and reactivation
initiatives and recent geological and engineering evaluations strongly indicate
that there are large areas within the field where the implementation of
horizontal drilling should enhance production as well as capture incremental
reserves. Bankers plans to drill the first D1 horizontal well during the third
quarter of 2010.

An additional water disposal well was successfully drilled and completed during
the quarter providing over 6,000 barrels per day of incremental disposal
capacity. As outlined in previous updates, the Company discovered that in
localized areas within the field, production from a few horizontal wells was
challenged by fresh water intrusion, the result of cross flow from shallower
formations within old vertical wells with corroded casing. The Company has
undertaken an aggressive identification and remedial completion repair program
to remedy this situation. With the additional water disposal capacity, two of
the horizontal wells have been successfully returned to production regaining a
portion of lost productivity and vertical wells in the same area have also
experienced a reduction in water with corresponding increases in oil production
as a result of these remedial operations.

Well Reactivations and Workovers

During the quarter, ten wells were successfully brought on stream through
reactivations and recompletions in new producing formations to add 230 bopd of
production. Four of the ten wells were reactivations adding 110 bopd and six
wells were re-perforations of current producing zones and recompletions of new
producing zones adding 120 bopd.

Well takeovers have been less frequent due to handover delays by Albpetrol
during the quarter. The Company has requested additional wells from Albpetrol
for re-activation in the third and fourth quarter of 2010.

Infrastructure Development

Planning for a 14 kilometre crude sales pipeline from the Patos-Marinza
oilfield to the rail tie-in at Fier is currently underway. The rail tie-in from
the field will connect to a facility at Fier, which in addition to housing
product storage, will also serve as the centralized distribution hub with rail
ties to both domestic refineries and to the export facility at Vlore. The
Company is in the process of acquiring the necessary materials and finalizing
the route and right of way. Construction is scheduled to begin in the fourth
quarter of 2010 and be completed in early 2011.

Tank construction at the Vlore terminal is underway. Completion of the
additional tankage by year-end will double storage to 160,000 barrels of oil
and will enable larger shipments of 120,000 barrels per load.

Thermal Pilot

The drilling of two vertical core recovery wells drilled to acquire cores for
primary and thermal evaluations on the western flank of the field is complete.
The first well cut and recovered 11 cores totaling 99 metres and the second
well cut 12 cores, recovering 108 metres. The cores have arrived in Canada for
special core analysis and petrophysical evaluation, the results of which will
be used for primary production evaluations and refinement of the thermal
simulation model. The wells will now be used for additional water disposal
capacity and for primary production evaluation.

Reservoir simulation continues to progress for horizontal cyclic steam
injection; current simulation work is focused on steam injection strategy and
production profile forecasts. Evaluation of the data collected to date,
indicates the implementation of a cyclic horizontal pilot with the drilling of
horizontal wells in both the Lower Gorani and D1 formations. A drilling and
production site for the project has preliminarily been selected and the
environmental approval process has been initiated. Detailed facilities and
piping design is in progress, with the major components of the injection and
production facilities having been ordered or under construction. This includes
the manufacturing of a high pressure 25,000 BTU steam generator which is
expected to arrive in Albania during the fourth quarter of 2010. The Company is
targeting the first quarter of 2011 to start steam injection activity.

Outlook:

Through out the remainder of 2010, the Company will remain focused on achieving
its priorities and implementing its capital program in Albania:

In July 2010, a third drilling rig commenced drilling in the Patos-Marinza
oilfield. The company plans to complete 52 horizontal and 11 vertical wells in
2010, including two core sample wells for thermal analysis and several
delineation wells into the western extension of the Patos-Marinza oilfield and
including Block F.

The Company is currently soliciting proposals for a fourth drilling rig and
expects to have another rig on location in the first quarter of 2011.

With current production of 10,300 bopd and expected production from the
remaining horizontal drilling and re-activation programs, Bankers projected
2010 year-end production target is 15,000 bopd.

Construction of an additional 80,000 barrels of storage capacity at the Vlore
export terminal is continuing on schedule and is expected to be completed by
year-end. In addition, progress is being made on the 14 kilometre, phase one of
the oil pipeline connecting the oilfield by rail to both the export terminal
and the two local refineries through use of a hub terminal at the city of Fier.
This pipeline and Fier Terminal are expected to be completed in early 2011 and
will add an additional 9,500 bopd of off-take capacity, giving the Company
export sales capacity up to 24,500 bopd by early 2011. Phase two, a 30
kilometre, 70,000 bopd capacity pipeline connecting the oilfield to the export
terminal, is scheduled to be completed by early 2012.

Two wells have now been cored in the north and south of the western extension
of the Patos-Marinza oilfield and were shipped to Canada for a full suite of
thermal testing, the results of which will define the parameters of a thermal
pilot set to commence at the end of this year. The results of the thermal pilot
will attempt to validate the most appropriate thermal extraction methodology to
access the 1.2 billion barrels of Contingent and Prospective resources at
Patos-Marinza through a commercial field expansion in 2012 and beyond.

The second half of 2010 will see the commencement of a pilot environmental
remediation project within the boundaries of the Patos-Marinza oilfield known
as Sector 3. Three separate remediation contractors will begin work on the
clean-up of legacy hazardous material left by previous operators in the field.
This is an important part of the work Bankers continues to press forward in
Albania, and will mark the beginning of serious environmental change for both
the local community as well as the country as a whole.

Some rather odd allegations about Bankers here http://file.wikileaks.org/file/visoka-oil-field-contamination.pdf and press article on them here http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/allegations-of-albanian-environmental-damage-hurled-at-calgary-oil-firm/article1630887/?cmpid=rss1

Bankers Petroleum late last month asked Albania’s government to investigate allegations that it set off subterranean well explosions that triggered an “environmental catastrophe.”

In a June 24 letter to the Albanian National Agency of Natural Resources, known as AKBN, Bankers’ chief financial officer Douglas Urch said the allegations “not only misrepresent the facts, but also makes accusations of illegal activities by Bankers, Albpetrol [Albania’s state oil company], AKBN and the Ministry.”

This isn't new - apologies if everyone has seen it before.

db

Hi salty64 (hawks11),

That seems reasonable enough, and would be good to hear progress later this week.

I can't understand though why the company don't put important dates on their Calendar, such as for results, rather than informing us when the bank holidays fall...

SM

Last year in August we had a conference call on Monday 10th August followed by a second quarter Financial and Operational Results on the Friday.
This would tie in with this coming week or perhaps the next unless anyone knows any different.

New presentation on the website:  http://www.bankerspetroleum.com/en/components/investor/bnk-presentation-2010-june.pdf

Darron - the Sep-09 OB presentation link in your header isn't working, but the detail is likely to have been superseded by this new one anyway.

SM

Away for a few days and Phew. Looked like good news to me but in true Bankers form the sp went the other way. Please stay that way for a few more days and allow me to buy back some more please.

$100m bought deal announced.

Done at $7.75 per share with the option of over allotment taking the max raise to $115m

Another large sale by Robert Cross, who still has plenty more.

http://www.investegate.co.uk/Article.aspx?id=20100601070000P78BF

That's £33,6012.84 to Robert Cross. Loose cash to buy some logs for the cold Canadian winter I expect. I hope that he and they make loads more in the future.

Seems two directors have been selling reasonably large stakes(namely the ones they'd just exercised) according to this link...

http://www.investegate.co.uk/article.aspx?id=20100521141940PF612&fe=1

Salty

I have added (granted only a small amount) this morning but will add on further SP weakness as I believe that POO is heading (will head back) towards $100/bbl.

JPGH

Salty

with BNK being a heavy oil producer and, even with good fiscal terms in Albania, is still more affected than most by falling POO. I suppose that some investors, as POO today (briefly?) looked as if it was headed towards $60 and below, may have panicked and took some well earned profits off the table.

I will be looking to add at these levels.

JPGH

Hi Salty

On hols so only a quick comment whilst swmbo is getting changed (and I finish this nice cigar and armagnac).

Bnk has always been very closely linked to the POO due to being basically pure production play with sales at discount due to the heavy nature (though improved by the recent deals with vitol etc). Plus I'd imagine a bit of profit taking given the big rises.

Personally I'm very relaxed as I don't see POO sticking at these levels for long and I'm still fixed on the endgame (takeover in 12 months or so). As a result, happy to buy on weakness like this.

Right, must sign off or else I'm in trouble!!

A bad day generally but worse than most is the drop of Bankers, especially as it has dipped quite a bit before today. I don't know of anything specific to BNK to cause this drop- and yes I do know it's a bad day in the markets we appear to have done worse than most, especially as the sp has been declining recently.

I appreciate that oil has hit a 7 month low point today at $67.90.

I missed 1st quarter results for Bankers on Friday but here they are and all seems to be going according to plan as far as my uneducated eye can see, but then I'm easily impressed;

http://www.investegate.co.uk/Article.aspx?id=20100514110000PC23E

This sounds good:

" Liquidity as of March 31, 2010 saw the company in a position of financial strength, with working capital of $66.0 million and cash of $62.7 million. An additional $15 million was received in April and May 2010. The Company had also drawn $26.4 million from its $139.6 million in available credit facilities."

Worth holding for a while I think.

Here is a recent interview with Doug Urch, CFO of Bankers. His interview commences about 3.30 secs into the item. Sounds like a man in a hurry but who also knows exactly where he is going:

http://watch.bnn.ca/commodities/april-2010/commodities-april-9-2010/#clip28703

"Bankers resumes oil deliveries to Albanian refineries
Bankers collects outstanding US$12 million sales receivable"

http://www.bankerspetroleum.com/en/components/investor/bnk_april_22_2010_armo_pr_final.pdf

This looks good for the future but I don't have the history - I just came in from the sun, having missed out on a holiday due to a cloud!

FWIW, Ive used the dip below $8.50 as an opportunity to pick up some stock. Seems as good a home as any at the moment (SIA excluded).

Oooh, some excitement in Bankersville (or not).

Some acquisitons! Shock horror.

Actually, not that shocking or surprising.

The company has, for some time now, been talking about the plans for Block F, which already has three gas fields (excluded from the deal). The thoughts were that this field could have an extension of Patos Marinza and had some prospects for oil and gas. The main thought was that it coudl be a good source of gas that could then be employed in the company's planned thermal recovery project, thereby significantly reducing the costs and improving the economics of the EOR plan.

So the PSC has been agreed. $1m signing bonus and a 7 year term with three explo periods. The first is a 3 year period with a committment to $1m of seismic and $4m for drilling two wells. The company plans three wells on F this year (so meeting the drilling requirement). These will be two wells to test the PM field extension and one explo well.

Also a third rig is coming. One year contract with an option on a second year. Rig will mobilise in May and be on site in July. It will drill up to 7 wells in to the Western extension of the field to delineate the boundaries as well as the thermal pilot wells and more horizontal wells with the aim of speeding up field development, production growth and adding new reserves.  

Oh, so not that exciting after all. Just more sticking to the plan type stuff......

Back to sleep then.

Operational and Corporate update issued.

Some exterpts:

• A total of 21
  horizontal wells have been drilled to date, with the 22nd well currently
  drilling. Overall the average production levels from the horizontal wells are
  in-line with or exceeding forecasts.
• Drilling is on schedule
  to reach the targeted 52 new horizontal wells this year, and will be aided
  significantly by the addition of the third drilling rig.
• As to the two horizontal wells with water intrusion problems, several
  offsetting old vertical wells have bein identified with cross flow problems
  and remedial completion repairs are being undertaken on these wells to remedy
  the situation. It is anticipated that these horizontal wells will be returned
  to production in the near future after the Company has increased its water
  disposal capacity in the field, which includes an additional disposal well
  that is currently drilling.
• The Central Treatment Facility has been expanded to enable processing of
  15,000 bopd with the second train completed and brought on-line during the
  quarter.
• Thermal Pilot
  
      The ordering of early lead items and well planning have begun. During
  April, vertical drilling to acquire cores will commence on the western flank
  of the field with two vertical wells currently scheduled for the second
  quarter.
• Additionally, commencing in the third quarter, the Company will initiate
  a drilling program with wells strategically located within the areas defined
  by our 2009 independent reserves evaluation as containing contingent and
  prospective resources.

As usual, there will be a conference call, live on the web and archived:

Conference Call

    The Management of Bankers will host a conference call on April 7, 2010 at
8:00am MST to discuss this operations update. Following Management's
presentation, there will be a question and answer session for analysts and
investors.
    To participate in the conference call, please contact the conference
operator ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A
live audio web cast of the conference call will also be available on Bankers
website at www.bankerspetroleum.com or by entering the following URL into your
web browser http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal
sign)3021040
    The web cast will be archived two hours after the presentation on the
website, and posted on the website for 90 days. A replay of the call will be
available until April 21, 2010 by dialing 1-800-642-1687 or 1-416-849-0833 and
entering access code 67447220.

In reply to salty64 (post #41)

The presentation by Abdel F Badwi, CEO is worth listening to.  There was a big reminder of the aim to be taken out in 2010 or to be involved in joint operations. For most part the oil is obtained by running the pump and getting production without the need for thermals or other means, he makes it sound very easy, but the pace of progress is hard to ignore.

The mention of use of Thermal and enhanced oil recovery is first mentioned 18 mins 30 secs into the presentation when two new cores will (or is it are?) being taken back to Calgary for analysis.  They plan to be steaming before 2010 is out.  Their aim is just to show that the thermal procedure is working before joint operations or being taken out.

There was plenty or assurance of being fully funded for the future operations.

In reply to salty64 (post #39)

So many presentations, this one is on Calgary which is GMT  plus seven hours so I shall try to tune in at 5.50pm or thereabouts.

new presentation (4th March) - presentation here

Conference call on Friday for those who are still interested.

CALGARY, March 3 /CNW/ - Notification of live webcast event:

Bankers Petroleum Ltd. (TSX: BNK; AIM: BNK)

Live webcast presentation

Friday, March 12, 2010, 10:50 AM EST (8:50 AM MST)

To listen and view this online event, please visit:

http://remotecontrol.jetstreammedia.com/16841

Hi Salty

A huge volume day for bnk in Canada. Slowish start surprisingly but a 12% gain at the close. V nice.

Stream - as I say, I don't know anything about them to be honest, so wouldn't know if they are going to list over here (given the pathetic vols for bnk over here, I wouldn't recommend it).

In reply to djpreston (post #36)

Thanks for that Darron, I'm catching up  and have been adding since I stumbled onto it and you made me aware just how good an investment was, any other share and there would be people shouting from the house tops and chartists  preening themselves but that does not seem to be BNK style.

I shall be watching Stream Oil and Gas and hopefully they will list over here as BNK did - I have subscribed to their mailing list.

In reply to djpreston (post #35)

Just some second thoughts on the reserves report, now that things have calmed down here.

This is a very big increase in the recoverables (to 1.2bn bbls) compared to what Ive seen from any of the brokers covering the stock. This is due to the inclusion of the Enhanced Recovery barrels (thermal and waterflood). With the Oil in place for PM now 6bn bbls, this is very positive, unless I am missing somethiing (quite possible - Ed).

Theres a conference call later so that will be enlightening since there was no real operations update and I will be most intrigued to look at what their plans are for the Thermal recovery and also how negotiations are going forthe gas field that they were looking at (for use primarily as a way of providing the fuel for the thermal ops).

This size of resource, being low riskand politically safe is the reason why I still see BNK as one of the best low risk plays and a sure fired eventual sale to a NOC (probably Chinese or Indian) looking for a long life reserve boost.

Edit - the shares have been on somewhat of a tear recently, up from sub 360p in London on Friday to 417p as we speak - an all time high and a mere 15 bagger since Dec 08;-)

2009 Reserves Report issued.

Extracts:

Total Albania Reserves Summary

  
    -   Proved reserves ("1P") of 92.8 million barrels (34% increase from
        December 31, 2008 after production of approximately 2.3 million
        barrels in 2009 representing over eleven times production
        replacement)

    -   Proved plus probable reserves ("2P") of 213.9 million barrels (19%
        increase from December 31, 2008)

    -   Proved, probable and possible reserves ("3P") of 422.3 million
        barrels (36% increase from December 31, 2008)

    -   Mean original oil in place resource estimate ("OOIP") of 6 billion
        barrels (21% increase from December 31, 2008)
  

    Patos Marinza Field

  
    -   1P reserves increased 34% to 90 million barrels of oil from
        67 million barrels at December 31, 2008 after 2009 production

    -   2P reserves increased 19% to 203 million barrels (December 31, 2008 -
        170 million barrels)

    -   3P reserves increased 42% to 390 million barrels (December 31, 2008 -
        275 million barrels)

    -   OOIP estimate (Pmean) increased 23% to 5.7 billion barrels

    -   All of Patos Marinza's 2009 reserves estimates are from primary
        recovery methods only
  

    The 2009 reserves growth is primarily attributable to improved well
performance and the Company's horizontal development drilling results. This is
reflected in the upgrade of 2P and 3P reserves into 1P and 2P reserve
categories, respectively, and the expansion of the 3P reserves and OOIP.

    Patos Marinza Contingent and Prospective Resources

    RPS has also assigned Contingent and Prospective Resource oil estimates
for the mapped area, western extension, and prospects beyond current mapping
within the Patos Marinza oilfield. As of December 31, 2009, Pmean Contingent
Resource of 821 million barrels and Pmean Prospective Resource of 382 million
barrels have been attributed based on thermal recovery technologies to be
applied to the Gorani and Driza formations and secondary water flood recovery
methods in the Marinza formation.

    "Quantifying Contingent and Prospective resources at Patos Marinza
validates the Company's plans for a thermal pilot and water flood injection
programs proposed for the 2010 capital program. Success of such initiatives
can lead to the conversion of significant volumes of these resources to
recoverable reserves and the subsequent implementation of a commercial field
expansion in 2012 and beyond" said Abby Badwi, President and CEO of Bankers.

    Kuçova Field

    The Kuçova field was acquired in 2008 and based on assessments completed
to date, the field development scope will be focused on waterflood
development. There was no Company production from the field in 2009, however
the field assessment activities performed in 2009 resulted in refinements to
the field development and had a favorable impact on the year end reserve
valuation.

  
    -   1P reserves 3.2 million barrels (2.4 million barrels in 2008)

    -   2P reserves 11.4 million barrels (10.1 million barrels in 2008)

    -   3P reserves 32.0 million barrels (35.5 million barrels in 2008)

    -   OOIP estimate remains unchanged at 297 million barrels
  

    Net Present Value of Total Albania Reserves (After Tax, discounted at
10%)

  
    -   1P reserves US$526 million, an increase of 88% from US$280 million at
        December 31, 2008

    -   2P reserves US$1.5 billion, an increase of 51% from US$1.0 billion at
        December 31, 2008

    -   3P reserves US$3.0 billion, an increase of 76% from US$1.7 billion at
        December 31, 2008

    -   Values are based on RPS (Patos Marinza) and D&M (Kuçova) January 1,
        2010 price forecast tables summarized below

    -   Basic shares outstanding of as of December 31, 2009 were
        approximately 228 million
  

    Finding and Development Costs of Total Albania Reserves ("F&D")

    Future capital costs are US$579 million, US$890 million, and US$1.1
billion on a 1P, 2P and 3P basis, respectively. This represents the following
F&D costs for 2009:

  
    -   1P reserves US$7.32 per barrel

    -   2P reserves US$8.43 per barrel

    -   3P reserves US$2.14 per barrel

Theres also good data on costs and prices including forecasts but I wont post these are that would be pushing the limits of what "extracts" means.

Cheers

D

In reply to salty64 (post #33)

Cant remember if ive mentioned it before, but another company operating inAlbania, looking to do the same as Bankers is Stream Oil & Gas (CVE:SKO). Yes, its Canadian Listed.

I havento looked into them too closely since I already have BNK and it is a bit too thinly traded for me to access but it is very early stage compared to BNK. Their COO was with BNK IIRC.

Anyway, their latest presentation from January is on their website.

May be of interest to someone.

D

In reply to Mattybuoy (post #32)

I may be wrong but there is a link to the website on the bottom of your link - www.manaspetroleum.com - I tried to cut and paste but was told this function was not available and to  use keyboard shortcuts?

WWI Resources has renamed itself to "Petromanas" and now has the ticker PMI.V, this alongside raising 25m in equity for the initial exploration and drilling program.

http://www.marketwire.com/press-release/Manas-Completes-Albanian-Transaction-1121381.htm

I still can't work out the FD shares with any confidence.

So far it has been trading with high volume at prices between 30c and 40c, giving a very indicative market cap of around C$100m.

There is no website yet that I can find.

These guys look to be following in the footsteps of Bankers with substantial acreage right next door and even "underneath". It's a spin off from NASDAQ listed Manas Resources.

WWI Resources (TSX:WWI)

In Albania, Manas now controls six giant exploration blocks near Europe's largest onshore production. Independent reports from Gustavson (2008) assign (P50) of 3 billion barrels in block A, B, D and E (12.3 billion barrels of oil in place). Two of Manas' original four blocks are now drill-ready. In 2009 the council of ministers ratified the production-sharing contract on the two former Oxy blocks to DWM Petroleum, a subsidiary of Manas. These blocks are within the area where most of Bankers Petroleum's current shallow oil production derives from. Manas has the rights to explore the deeper targets in block two where Bankers is producing oil, and where in 2001 Occidental made a light oil discovery. In November Manas entered into a letter of intent to spin off a portion of its interest in its Albanian project to a TSX-V listed company WWI Resources ("WWI") which is controlled by one of the largest and most successful North American resource investors, Frank Giustra.

From http://www.undiscoveredequities.com/top_10_2010.html

Also see http://www.newswire.ca/en/releases/archive/November2009/24/c4494.html

As far as I can the fully diluted shares number is around 270-280m, and the most recent share price is 30c.

If they drill another 52 wells this year as planned and the average is the same per well as in 2009 ie. 130 bopd that would exit the year at 6760 bopd on that exploration year alone. Their average production was in excess of 8,100 bopd in 2009 so with a lot of good fortune they might be producing 14860 bopd at the end of next year.

In reply to djpreston (post #28)

I just picked up the email from Bankers - and I was actually considering selling some today to get some more SOCO but when they say, that they intend to drill that number of wells I think I will slap my own wrist.

The RNS is worth a read for those who have not heard of the company, or like me came to it later than I would have liked.  Perhaps someone might be able to make a stab at any projections, I certainly couldn't.  I might try a few calcs for my own purpose though.

RNS issued confirming the second rig has been deployed and is now drilling the first of several horizontal wells.

Adds that they expect to drill 52 horizontal wells this year.

In reply to JPGH (post #25)

Listening to the podcast, Gavin Wiley asked the question about production expected by the end of year 2010 and said it was expected to increase from just over 8000 at present to 15000 barrels per day.  This was about 3/4 way through the presentation.

In reply to djpreston (post #24)

I do not find it boring Darren and I expect that there must be a lot more frenzied support in Canada than over here.
With this latest release and the, " 2010 capital budget and production guidance." release my mind just can't cope, but I am trying to add a few more at 380p.

 http://www.investegate.co.uk/Article.aspx?id=20091222130000P348F

I'm pleased to say I was successful buying at 367p.  Now to have a go at Fastrade to ask why my purchases of this share never show up and nor do they produce the RNS's.

Darron

Did Bankers hint or state what they expect production to average in Q4 2010.

I am a bit cross I missed these last year and also thought, after OB presentation in Sept, that maybe they'll drop back a bit for me to get on board. Did they f**k!!!.. So now they are sitting at 380p and I am still looking for a pull back before getting stuck in.

JPGH

Yawn - Another update and yet more boring success:

Record production of 7,230 bopd in Q4 vs 6,258 in Q3 in Patos Marinza

Average Price in Q4 $45.10/bbl vs Q3's $40.71.

Five horizontal wells drilled in the Q, 4 on production. Fifth due onstream next week.

The Four producers are averaging 120 - 280 bopd.

Average from all 9 horizontals on prod is 130 bopd. Last four average 170 bopd.

Second rig is now in place and should spud first well this month.

2010 should see 52 horizontal wells and 4 vertical wells funded by its $152m capex programme. Covered by cashflow, cash in hand and the $110m facility.

For those of you who arent totally bored of hearing about how they just keep getting on with the plan, there is a conference call:

Conference Call

    The Management of Bankers will host a conference call on January 12, 2010
at 9:00am MST to discuss this operational update. Following management's
presentation, there will be a question and answer session for analysts and
investors.
    To participate in the conference call, please contact the conference
operator ten minutes prior to the call at 1-888-231-8191 or 1-647-427-7450. A
live audio web cast of the conference call will also be available on Bankers
website at www.bankerspetroleum.com or by entering the following URL into your
web browser
    http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal
sign)2929960
    The web cast will be archived two hours after the presentation on the
website, and posted on the website for 90 days. A replay of the call will be
available until January 26, 2010 by dialing 1-800-642-1687 or 1-416-849-0833
and entering access code 50095105.

zzzzzzzzzzz

BANKERS PETROLEUM ANNOUNCES ITS 2010 CAPITAL BUDGET AND PRODUCTION GUIDANCE

Exit target 15,000 bopd

http://tinyurl.com/y8lrxf2

The 2010 exit rate production guidance has also been revised to 15,000 bopd, an increase of 15% over its previous guidance and an 88% increase over the projected 2009 exit rate of 8,000 bopd.

They make it sound easy.

Thanks DJ, it will teach me to watch more closely my watch list, but I am still grateful for my sizeable chunk at 25%.

In reply to salty64 (post #20)

Yep, its all being led out of Canada with mark up over here at the morning to reflect the day's move over the Pond.

Not complaining though - 30p to 360p in a year. ;-))