REG-Bankers Petroleum Limited: 1st Quarter Results <Origin Href="QuoteRef">BNK.TO</Origin>
07/05/2015 12:00
Bankers Petroleum Announces 2015 First Quarter Financial and Operational
Results
Cash Margin of US$23.32/bbl and Q2 Average Production to Date 19,700 bopd
CALGARY, May 7, 2015 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the
"Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2015 first quarter
financial and operational results.
During the quarter, Bankers achieved a cash margin for US$23.32 per barrel and
netback of US$13.62 per barrel. All amounts listed in this news release are in
US dollars unless otherwise stated.
Results at a Glance Three months ended March 31
(US$000s, except as noted) 2015 2014 % change
Financial
Oil revenue 72,404 144,985 (50%)
Net operating income 24,868 92,491 (73%)
Net income 879 24,992 (96%)
Basic (US$/share) 0.003 0.097 (97%)
Diluted (US$/share) 0.003 0.095 (97%)
Funds generated from 24,890 83,109 (70%)
operations
Basic (US$/share) 0.095 0.323 (71%)
Capital expenditures 49,945 59,865 (17%)
Operating
Average production (bopd) 19,767 19,911 (1%)
Average sales (bopd) 20,283 18,435 10%
Average Brent oil price (US$ 53.94 108.21 (50%)
/barrel)
Average realized price (US$/ 39.66 87.39 (55%)
barrel)
Netback (US$/barrel) 13.62 55.75 (76%)
March 31, December 31, 2014 March 31,
2015 2014
Cash and restricted cash 57,842 73,036 56,172
Working capital 174,209 201,325 160,346
Total assets 1,264,256 1,284,846 1,077,580
Long-term debt 98,872 98,276 98,374
Shareholders' equity 718,552 716,536 595,918
Highlights for the quarter ended March 31, 2015 are:
Operational Highlights:
* Average oil production for the three months ended March 31, 2015 was 19,767
barrels of oil per day (bopd) compared to 20,338 bopd in the previous
quarter and 19,911 bopd in the first quarter of 2014.
* Oil sales averaged 20,283 bopd for the first quarter of 2015 compared to
20,619 bopd for the previous quarter and 18,435 bopd for the first quarter
of 2014. Crude oil inventory at March 31, 2015 decreased to 270,000 barrels
compared to 315,500 barrels at December 31, 2014.
* During the first quarter of 2015, capital expenditures were $50 million.
The Company drilled 21 wells during the quarter, comprised of 20 horizontal
production wells and one lateral re-drill in the main area of the
Patos-Marinza oilfield. Capital expenditures were $72 million for the
previous quarter and $60 million for the first quarter of 2014. During the
first quarter of 2015, Bankers reduced its active rig count from three to
two in response to low commodity prices.
Product Margin Highlights:
* For the three months ended March 31, 2015, operating costs and sales and
transportation (S&T) costs, originating from Albanian-based companies and
their employees, were $37 million ($20.48/bbl) compared to $42 million
($21.92/bbl) for the previous quarter and $31 million ($18.41/bbl) for the
first quarter of 2014. Overall, operating and S&T costs improved by 5%, on
a per barrel basis, from the fourth quarter of 2014 to the first quarter of
2015, taking into account the $2.54/bbl impact of excise tax for the first
quarter of 2015 compared to $3.10/bbl for the previous quarter.
* Net operating income (netback) in the first quarter of 2015 was $25 million
($13.62/bbl) compared to $51 million ($27.01/bbl) for the previous quarter
and $92 million ($55.75/bbl) for the first quarter of 2014.
* Cash margin for the first quarter of 2015 was $23.32/bbl compared to $31.30
/bbl in the previous quarter and $55.75/bbl in the first quarter of 2014.
Cash margin represents netback inclusive of the realized gain on commodity
contracts and recovery against an outstanding accounts receivable balance.
Financial Highlights:
* For the first quarter of 2015, revenue was $72 million ($39.66/bbl)
compared to $109 million ($57.29/bbl) in the previous quarter and $145
million ($87.39/bbl) in the first quarter of 2014. Field price realization
represented 74% of the Brent oil benchmark price ($53.94/bbl) for the first
quarter of 2015 compared to 75% of the Brent oil benchmark price ($76.58/
bbl) in the previous quarter and 81% of the Brent oil benchmark price
($108.21/bbl) in the first quarter of 2014. The reduction as a percentage
of Brent compared to the first quarter of 2014 was mainly due to higher
domestic sales during the first quarter of 2015.
* Royalties to the Albanian Government and related entities during the first
quarter of 2015 were $10 million (14% of revenue) compared to $16 million
(15% of revenue) for the previous quarter and $22 million (15% of revenue)
for the first quarter of 2014.
* Funds generated from operations were $25 million ($0.095 per share) for the
first quarter of 2015 compared to $23 million ($0.088 per share) for the
previous quarter and $83 million ($0.323 per share) for the first quarter
of 2014.
* The Company continues to maintain a strong financial position at March 31,
2015, with cash of $58 million and working capital of $174 million. At
March 31, 2015, the Company had drawn $111 million of its $224 million
approved credit facilities. Working capital for December 31, 2014 and March
31, 2014 was $201 million and $160 million, respectively.
* Bankers recognized a $14 million ($7.74/bbl) realized gain on financial
commodity contracts during the first quarter of 2015. The financial
commodity contracts represent 6,000 bopd at a floor price of $80/bbl of
Dated Brent for 2015. At March 31, 2015, the fair value of these contracts
was $42 million
OUTLOOK
The Company continues to execute on its three part strategy to deliver reliable
and repeatable low cost horizontal wells through the primary drilling program,
expanding its product margin through surface-level improvements and accelerate
the enhanced oil recovery program.
The second quarter 2015 quarter-to-date average production is 19,700 bopd from
the Patos-Marinza and Kuçova oilfields in Albania, consistent with the first
quarter average of 19,767 bopd.
Bankers intends to drill eleven (11) horizontal wells in the second quarter;
nine (9) horizontal production wells in the core of the Patos-Marinza field,
one (1) horizontal production well in Kuçova and one (1) horizontal water
disposal well.
Infrastructure and facilities projects in the second quarter include the
ongoing construction of the northern flow line system, scheduled to be
completed in the third quarter, the installation of vapor recovery units and
gas distribution systems to capture and utilize associated gas and the
electrification of well sites. Bankers expects to see further cost savings
throughout 2015 with the maturing of these projects.
The Company will continue to expand on the polymer and water flood program with
four (4) planned conversions in the second quarter. The pace of injector
conversions will be higher in the second half of 2015, following the
installation of associated facilities and pipelines, with up to 20 conversions
in the third and fourth quarters.
The Company intends to issue the second quarter 2015 operational update and
host a conference call on Tuesday, July 14, 2015.
Carbon Dioxide Release - Remediation and Prevention
Following the carbon dioxide release that occurred on April 1, 2015 during the
drilling of a horizontal well, Bankers is focused on two main objectives.
First, coordinate with local community officials to recover the affected area
and return residents to their normal lives through repair work and appropriate
compensation for any damages. Secondly, Bankers has undergone a thorough
technical evaluation of our drilling practices to ensure this does not happen
again. Bankers operates with world-class operational and safety standards; our
highest priority is the health and safety of our employees and the residents of
the communities in which we operate.
Supporting Documents
The full Management Discussion and Analysis (MD&A), Financial Statements and
updated corporate presentation are available on www.bankerspetroleum.com. The
MD&A and Financial Statements will also be available on www.sedar.com.
BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
FOR THE THREE MONTHS ENDED MARCH 31
(Unaudited, expressed in thousands of US dollars, except per share amounts)
2015 2014
Revenues $ 72,404 $ 144,985
Royalties (10,144) (21,948)
62,260 123,037
Realized gain on financial commodity contracts 14,130 -
Unrealized loss on financial commodity contracts (2,039) (465)
74,351 122,572
Operating expenses 23,495 20,170
Sales and transportation expenses 13,897 10,376
General and administrative expenses 4,652 5,872
Contract settlement expenses 355 172
Depletion and depreciation 30,119 26,693
Share-based compensation 1,182 1,468
73,700 64,751
651 57,821
Net finance expense (8,888) (3,813)
Income (loss) before income tax (8,237) 54,008
Deferred income tax recovery (expense) 9,116 (29,016)
Net income for the period 879 24,992
Other comprehensive loss
Currency translation adjustment (1,420) (234)
Comprehensive income (loss) for the period $ (541) $ 24,758
Basic earnings per share $ 0.003 $ 0.097
Diluted earnings per share $ 0.003 $ 0.095
BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Unaudited, expressed in thousands of US dollars)
ASSETS
March 31 December 31
2015 2014
Current assets
Cash and cash equivalents $ 52,251 $ 68,036
Restricted cash 5,591 5,000
Accounts receivable 61,415 81,612
Inventory 6,343 10,008
Deposits and prepaid expenses 62,312 62,984
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