Bankers Petroleum Announces 2011 First Quarter Financial and Operational Results
13.05.2011 | PR Newswire
CALGARY, May 13 /PRNewswire-FirstCall/ -- Bankers Petroleum Ltd. ('Bankers' or the 'Company') (TSX: BNK) (AIM: BNK) is pleased to provide its 2011 first quarter Financial and operational results. The complete reporting package, consisting of Management's Discussion and Analysis along with Financial Statements and Notes, is posted on the Company's website www.bankerspetroleum.com and SEDAR: www.sedar.com.
Results at a
Glance
(US$000,
except as Three months ended Three months ended
noted)(3) March 31 December 31
2011 2010 Change 2010 Change
Oil revenue 72,736 35,149 107% 50,945 43%
Net operating
income 39,834 15,639 155% 25,465 56%
Net income
(loss) 11,219 (363) 32 x 4,630 142%
Funds
generated
from
operations(1) 30,259 13,814 119% 23,292 30%
Capital
expenditures 51,930 26,170 98% 37,367 39%
Average
production
(bopd) 11,894 8,282 44% 10,424 14%
Average price
($/barrel) 67.95 47.16 44% 53.12 28%
Netback
($/barrel) 37.22 20.98 77% 26.55 40%
March March December
31 31 31
2011 2010 Change 2010 Change
Cash and
deposits 82,854 67,712 22% 108,119 (23%)
Adjusted
working
capital(2) 111,382 70,626 58% 134,934 (17%)
Total assets 522,476 329,036 59% 465,598 12%
Bank loans 20,416 26,418 (23%) 25,829 (21%)
Shareholders'
equity 371,355 226,882 64% 346,267 7%
(1) Includes $6.6 million cash
premiums paid for financial
commodity contracts.
(2) Represents working capital net of
current portion of long-term debt.
(3) Effective January 1, 2011, and
retroactive to January 1, 2010,
the Company adopted International
Financial Reporting Standards
(IFRS). Previously, the Company
prepared its Financial Statements
in accordance with Canadian
Generally Accepted Accounting
Principles (GAAP). The transition
has not resulted in any material
variation from prior periods. Full
details on the transition
adjustments are contained in the
Notes to the Consolidated Interim
Financial Statements.
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 www.bankerspetroleum.com.
BANKERS PETROLEUM LTD.
CONSOLIDATED STATEMENT OF FINANCIALPOSITION
(Unaudited, expressedin thousands of USdollars)
ASSETS
March December January
31 31 1
2011 2010 2010
Currentassets
Cash and cash
equivalents $ 81,354 $ 106,619 $ 59,495
Short-term
investments - - 7,275
Restricted cash 1,500 1,500 1,500
Accounts
receivable 48,063 29,233 23,358
Inventory 15,890 4,199 2,031
Deposits and
prepaid
expenses 15,265 16,624 5,899
162,072 158,175 99,558
Non-current
assets
Note receivable - - 2,749
Deferred
financing costs 13,589 13,980 15,824
Financial
commodity
contracts 5,187 - -
Property, plant
and equipment 341,628 293,443 187,924
Total assets $ 522,476 $ 465,598 $ 306,055
LIABILITIES
Current
liabilities
Accounts
payable and
accrued
liabilities $ 50,690 $ 23,241 $ 19,505
Current portion
of long-term
debt 18,565 4,014 4,639
69,255 27,255 24,144
Non-current
liabilities
Long-term debt 1,851 21,815 23,446
Decommissioning
obligation 6,871 6,622 4,796
Deferred tax
liabilities 73,144 63,639 38,892
Total liabilities 151,121 119,331 91,278
SHAREHOLDERS' EQUITY
Share capital 314,456 309,379 206,058
Warrants 1,597 1,597 1,739
Contributed
surplus 35,113 28,135 16,443
Accumulated other
comprehensive
income 7,908 6,094 -
Retained earnings
(deficit) 12,281 1,062 (9,463)
371,355 346,267 214,777
$ 522,476 $ 465,598 $ 306,055
BANKERS PETROLEUMLTD.
CONSOLIDATED STATEMENTSOF COMPREHENSIVE INCOME
FOR THE THREE MONTHSENDEDMARCH 31
(Unaudited, expressed in thousands of US dollars,except per shareamounts)
2011 2010
Revenues $ 72,736 $ 35,149
Royalties (13,755) (7,190)
58,981 27,959
Operating
expenses 11,597 7,925
Sales and
transportation
expenses 7,550 4,395
General and
administrative
expenses 2,858 2,456
Depletion and
depreciation 8,265 4,384
Amortization
of deferred
financing
costs 734 683
Share-based
payments 4,645 3,704
Unrealized
loss on
financial
commodity
contracts 1,401 -
37,050 23,547
21,931 4,412
Finance income 307 727
Finance
expense (1,514) (753)
(1,207) (26)
Income before
income tax 20,724 4,386
Deferred
income tax
expense (9,505) (4,749)
Net income
(loss) for
theperiod 11,219 (363)
Other
comprehensive
income
Currency
translation
adjustment 1,814 1,444
Comprehensive
income forthe
period $ 13,033 $ 1,081
Basic earnings
(loss) per
share $ 0.046 $ (0.002)
Diluted
earnings
(loss) per
share $ 0.044 $ (0.002)
BANKERSPETROLEUMLTD.
CONSOLIDATEDSTATEMENTOFCHANGES IN EQUITY
(Unaudited, expressed in thousandsof USdollars, exceptnumberofcommonshares)
Accumulated
Number of other Retained
common Share Contributed comprehensive earnings
shares capital Warrants surplus income (deficit) Total
Balance at
January 1,
2010 228,272,165 $ 206,058 $ 1,739 $ 16,443 $ - $ (9,463) $ 214,777
Share-based
payments - - - 6,608 - - 6,608
Options
exercised 1,035,222 2,759 - (952) - - 1,807
Warrants
exercised 1,033,334 2,724 (115) - - - 2,609
Net loss
for the
period - - - - - (363) (363)
Currency
translation
adjustment - - - - 1,444 - 1,444
Balance at
March 31,
2010 230,340,721 211,541 1,624 22,099 1,444 (9,826) 226,882
Issue of
common
shares 12,903,228 96,153 - - - - 96,153
Share issue
costs - (4,333) - - - - (4,333)
Share-based
payments - - - 7,876 - - 7,876
Options
exercised 1,307,108 5,361 - (1,840) - - 3,521
Warrants
exercised 243,933 657 (27) - - - 630
Net income
for the
period - - - - - 10,888 10,888
Currency
translation
adjustment - - - - 4,650 - 4,650
Balance at
December
31, 2010 244,794,990 309,379 1,597 28,135 6,094 1,062 346,267
Share-based
payments - - - 8,925 - - 8,925
Options
exercised 1,963,444 5,077 - (1,947) - - 3,130
Net income
for the
period - - - - - 11,219 11,219
Currency
translation
adjustment - - - - 1,814 - 1,814
Balance at
March 31,
2011 246,758,434 $ 314,456 $ 1,597 $ 35,113 $ 7,908 $ 12,281 $ 371,355
BANKERSPETROLEUM LTD.
CONSOLIDATED STATEMENTSOF CASH FLOWS
FOR THE THREE MONTHSENDED MARCH 31
(Unaudited, expressed in thousandsof US dollars)
2011 2010
Cash provided by
(used in):
Operating activities
Net income (loss)
for the period $ 11,219 $ (363)
Depletion and
depreciation 8,265 4,384
Amortization of
deferred financing
costs 734 683
Finance expenses
(including
accretion) 1,514 753
Interest paid (310) (165)
Foreign exchange
(gain) loss (126) 69
Deferred income
tax expense 9,505 4,749
Share-based
payments 4,645 3,704
Unrealized loss on
financial
commodity
contracts 1,401 -
Cash premiums paid
for financial
commodity
contracts (6,588) -
30,259 13,814
Change in non-cash
working capital (8,012) (1,678)
22,247 12,136
Investing activities
Additions to
property, plant
and equipment (51,930) (26,170)
Change in non-cash
working capital 5,988 5,022
(45,942) (21,148)
Financing activities
Issue of shares
for cash 3,130 4,416
Short-term
deposits - (1,800)
Financing costs (26) (152)
Decrease in
long-term debt (5,413) (1,667)
(2,309) 797
Foreignexchange gain
on cashand cash
equivalents 739 857
Decrease in cash and
cash equivalents (25,265) (7,358)
Cash and cash
equivalents,
beginning of period 106,619 59,495
Cash and cash
equivalents, endof
period $ 81,354 $ 52,137
Caution Regarding Forward-looking Information
Information in this news release respecting matters such as the expected future production levels from wells, future prices and netback, work plans, anticipated total oil recovery of the Patos Marinza and Kuçova oilfields constitute forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.
Exploration for oil is a speculative business that involves a high degree of risk. The Company's expectations for its Albanian operations and plans are subject to a number of risks in addition to those inherent in oil production operations, including: that Brent oil prices could fall resulting in reduced returns and a change in the economics of the project; availability of financing; delays associated with equipment procurement, equipment failure and the lack of suitably qualified personnel; the inherent uncertainty in the estimation of reserves; exports from Albania being disrupted due to unplanned disruptions; and changes in the political or economic environment.
Production and netback forecasts are based on a number of assumptions including that the rate and cost of well takeovers, well reactivations and well recompletions of the past will continue and success rates will be similar to those rates experienced for previous well recompletions/reactivations/development; that further wells taken over and recompleted will produce at rates similar to the average rate of production achieved from wells recompletions/reactivations/development in the past; continued availability of the necessary equipment, personnel and financial resources to sustain the Company's planned work program; continued political and economic stability in Albania; approval of the Addendum to the Plan of Development; the existence of reserves as expected; the continued release by Albpetrol of areas and wells pursuant to the Plan of Development and Addendum; the absence of unplanned disruptions; the ability of the Company to successfully drill new wells and bring production to market; and general risks inherent in oil and gas operations.
Contingent resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Prospective resources disclosed herein represent those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations, by application of future development projects.
Forward-looking statements and information are based on assumptions that financing, equipment and personnel will be available when required and on reasonable terms, none of which are assured and are subject to a number of other risks and uncertainties described under 'Risk Factors' in the Company's Annual Information Form and Management's Discussion and Analysis, which are available on SEDAR under the Company's profile at http://www.sedar.com/.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information and forward-looking statements.
Review by Qualified Person
This release was reviewed by Abdel F. (Abby) Badwi, President & CEO of Bankers Petroleum Ltd., who is a 'qualified person' under the rules and policies of AIM in his role with the Company and due to his training as a professional petroleum geologist (member of APEGGA) with over 40 years experience in domestic and international oil and gas operations.
About Bankers Petroleum Ltd.
Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and production company focused on developing large oil and gas reserves. In Albania, Bankers operates and has the full rights to develop the Patos-Marinza heavy oilfield and has a 100% interest in the Kuçova oilfield, and a 100% interest in Exploration Block F. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.
Bankers Petroleum Ltd.
CONTACT:
Abby Badwi President and Chief Executive (403) 513-2694
Officer
Doug Urch Executive VP, Finance and (403) 513-2691
Chief Financial Officer
Mark Hodgson VP, Business Development (403) 513-2695
Email: investorrelations@bankerspetroleum.com
Website: http://www.bankerspetroleum.com/
AIM NOMAD:
Canaccord Genuity Limited
Ryan Gaffney/ Henry
Fitzgerald-O'Connor
+44 20 7050 6500
AIM JOINT BROKERS:
Canaccord Genuity Limited Macquarie Capital Advisors
Ryan Gaffney/ Henry Ben Colegrave/Paul Connolly
Fitzgerald-O'Connor
+44 20 7050 6500 +44 20 3037 5639