Canada NewsWire
CALGARY, March 10, 2016
Cash Position of $69 Million and Balanced 2015 Capital Program
CALGARY, March 10, 2016 /CNW/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2015 financial results. All amounts set out in this press release and listed in the tables below are in US dollars unless otherwise stated.
In 2015, Bankers prioritized the strength of its balance sheet by carrying out a $144 million capital expenditure program fully-funded with 2015 funds generated from operations and maintaining cash and restricted cash of $69 million.
Results at a Glance | |||||||
($000s, except as noted) |
Year ended December 31 | ||||||
Results at a Glance |
2015 |
2014 |
2013 | ||||
Financial |
|||||||
Oil revenue |
286,634 |
583,120 |
566,386 | ||||
Net operating income |
123,114 |
342,375 |
316,558 | ||||
Net income (loss) |
(3,614) |
128,833 |
61,743 | ||||
Basic (US$/share) |
(0.01) |
0.50 |
0.24 | ||||
Diluted (US$/share) |
(0.01) |
0.49 |
0.24 | ||||
Funds generated from operations |
151,529 |
284,293 |
279,601 | ||||
Adjusted funds generated from operations(1) |
151,914 |
304,130 |
279,752 | ||||
Basic (US$/share) |
0.58 |
1.17 |
1.10 | ||||
Capital expenditures |
144,013 |
291,325 |
234,243 | ||||
Operating |
|||||||
Average production (bopd) |
19,385 |
20,690 |
18,169 | ||||
Average sales (bopd) |
19,545 |
20,679 |
18,173 | ||||
Average Brent oil price (US$/barrel) |
52.39 |
98.95 |
108.66 | ||||
Average realized price (US$/barrel) |
40.18 |
77.26 |
85.39 | ||||
Netback (US$/barrel) |
17.25 |
45.36 |
47.73 | ||||
Cash margin (US$/barrel) |
26.09 |
46.68 |
47.73 | ||||
As at December 31 | |||||||
2015 |
2014 |
2013 | |||||
Cash and restricted cash |
69,141 |
73,036 |
31,706 | ||||
Working capital |
159,868 |
201,325 |
134,094 | ||||
Total assets |
1,261,390 |
1,284,846 |
1,007,148 | ||||
Long-term debt |
98,628 |
98,276 |
98,150 | ||||
Shareholders' equity |
719,294 |
716,536 |
564,675 |
1. Represents funds generated from operations before non-recurring contract settlement expenses.
Highlights
Bankers reached several key financial and operational achievements during 2015 as described below:
Operational Highlights:
Product Margin Highlights:
Financial Highlights:
Other Highlights in 2015:
Outlook
The 2016 capital program prioritizes management's strategy to maintain a strong balance sheet during the current period of low oil prices, maximizing activity to fit within cash flow. Bankers' activity will focus on maintaining the EOR program, managing existing production and drilling new horizontal wells in the second half of the year, if pricing allows. Base maintenance capital at the Patos-Marinza oilfield would require capital expenditure of approximately $24 million, additional activities included in the 2016 capital program are outlined as follows:
The 2016 capital budget and work program is based on an average annual Brent oil price assumption of $46.25/bbl; $42.50/bbl in the first half of the year, with some pricing improvement assumed for the second half average of $50.00/bbl. Additionally, commencing in the second half of 2015, Bankers began to build upon its 2016 hedging strategy by placing costless collar contracts with an average floor of $52.09/bbl and an average ceiling of $54.64/bbl on 5,000 bopd for 2016 (all prices are referenced to Dated Brent).
First Quarter Operational Update
Bankers intends to announce its first quarter 2016 Operational update on Tuesday, April 5, 2016.
Annual General Meeting
Bankers Petroleum will host its annual general meeting of shareholders of Bankers Petroleum Ltd. at The Metropolitan Centre, Strand/Tivoli Room, on Wednesday, May 18, 2016 at 3:00 pm MDT. The Metropolitan Centre is located at 333- 4th Avenue SW, Calgary, Alberta.
Supporting Documents
The full Management Discussion and Analysis (MD&A), Financial Statements and updated March 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 YEARS ENDED DECEMBER 31 | ||||||||||||
(Expressed in thousands of US dollars, except per share amounts) | ||||||||||||
2015 |
2014 | |||||||||||
Revenues |
$ |
286,634 |
$ |
583,120 | ||||||||
Royalties |
(40,070) |
(85,966) | ||||||||||
Revenues, net of royalties |
246,564 |
497,154 | ||||||||||
Realized gain (loss) on financial commodity contracts |
58,151 |
(1,188) | ||||||||||
Unrealized gain (loss) on financial commodity contracts |
(21,323) |
45,226 | ||||||||||
Total operating revenues |
283,392 |
541,192 | ||||||||||
Operating expenses |
84,667 |
95,317 | ||||||||||
Sales and transportation expenses |
38,783 |
59,462 | ||||||||||
General and administrative expenses |
20,992 |
22,189 | ||||||||||
Contract settlement expenses |
385 |
19,837 | ||||||||||
Depletion and depreciation |
119,534 |
116,458 | ||||||||||
Share-based compensation |
4,213 |
5,721 | ||||||||||
Provision for bad debt expense |
17,099 |
- | ||||||||||
Total expenses |
285,673 |
318,984 | ||||||||||
Operating income (loss) |
(2,281) |
222,208 | ||||||||||
Net finance expense |
(17,375) |
(6,182) | ||||||||||
Income (loss) before income tax |
(19,656) |
216,026 | ||||||||||
Income tax (expense) recovery |
||||||||||||
Current |
(765) |
- | ||||||||||
Deferred |
16,807 |
(87,193) | ||||||||||
16,042 |
(87,193) | |||||||||||
Net income (loss) for the year |
(3,614) |
128,833 | ||||||||||
Other comprehensive loss |
||||||||||||
Currency translation adjustment |
(2,893) |
(1,935) | ||||||||||
Comprehensive income (loss) for the year |
$ |
(6,507) |
$ |
126,898 | ||||||||
Basic earnings (loss) per share |
$ |
(0.014) |
$ |
0.497 | ||||||||
Diluted earnings (loss) per share |
$ |
(0.014) |
$ |
0.486 | ||||||||
BANKERS PETROLEUM LTD. | ||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||||
AS AT DECEMBER 31 | ||||||||||
(Expressed in thousands of US dollars) | ||||||||||
ASSETS | ||||||||||
2015 |
2014 | |||||||||
Current assets |
||||||||||
Cash and cash equivalents |
$ |
51,963 |
$ |
68,036 | ||||||
Restricted cash |
17,178 |
5,000 | ||||||||
Accounts receivable |
56,592 |
81,612 | ||||||||
Inventory |
4,597 |
10,008 | ||||||||
Deposits and prepaid expenses |
67,514 |
62,984 | ||||||||
Financial commodity contracts |
20,000 |
44,170 | ||||||||
217,844 |
271,810 | |||||||||
Non-current assets |
||||||||||
Property, plant and equipment |
1,034,791 |
1,004,508 | ||||||||
Exploration and evaluation assets |
8,755 |
8,528 | ||||||||
$ |
1,261,390 |
$ |
1,284,846 | |||||||
LIABILITIES | ||||||||||
Current liabilities |
||||||||||
Accounts payable and accrued liabilities |
$ |
39,156 |
$ |
69,285 | ||||||
Income tax liability |
765 |
- | ||||||||
Current portion of long-term debt |
18,055 |
1,200 | ||||||||
57,976 |
70,485 | |||||||||
Non-current liabilities |
||||||||||
Long-term debt |
98,628 |
98,276 | ||||||||
Decommissioning obligation |
29,264 |
26,147 | ||||||||
Deferred tax liabilities |
356,228 |
373,402 | ||||||||
542,096 |
568,310 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||
Share capital |
365,045 |
363,670 | ||||||||
Contributed surplus |
94,299 |
86,409 | ||||||||
Currency translation reserve |
1,517 |
4,410 | ||||||||
Retained earnings |
258,433 |
262,047 | ||||||||
719,294 |
716,536 | |||||||||
$ |
1,261,390 |
$ |
1,284,846 | |||||||
BANKERS PETROLEUM LTD. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
FOR THE YEARS ENDED DECEMBER 31 | ||||||||
(Expressed in thousands of US dollars) | ||||||||
2015 |
2014 | |||||||
Cash provided by (used in): |
||||||||
Operating activities |
||||||||
Net income (loss) for the year |
$ |
(3,614) |
$ |
128,833 | ||||
Depletion and depreciation |
119,534 |
116,458 | ||||||
Accretion of long-term debt |
961 |
1,350 | ||||||
Accretion of decommissioning obligation |
1,308 |
1,139 | ||||||
Unrealized foreign exchange (gain) loss |
3,900 |
(649) | ||||||
Current income tax expense |
765 |
- | ||||||
Deferred income tax expense (recovery) |
(16,807) |
87,193 | ||||||
Share-based compensation |
4,213 |
5,721 | ||||||
Discount and revaluation gain of long-term receivable |
- |
(12,316) | ||||||
Provision for bad debt expense |
17,099 |
- | ||||||
Realized loss on financial commodity contracts |
2,847 |
4,637 | ||||||
Unrealized (gain) loss on financial commodity contracts |
21,323 |
(45,226) | ||||||
Cash premiums paid for financial commodity contracts |
- |
(2,847) | ||||||
151,529 |
284,293 | |||||||
Change in long-term receivable |
- |
19,335 | ||||||
Change in non-cash working capital |
(8,985) |
2,767 | ||||||
142,544 |
306,395 | |||||||
Investing activities |
||||||||
Additions to property, plant and equipment |
(143,786) |
(289,616) | ||||||
Additions to exploration and evaluation assets |
(227) |
(1,709) | ||||||
Restricted cash |
(12,178) |
2,109 | ||||||
Change in non-cash working capital |
(17,734) |
15,064 | ||||||
(173,925) |
(274,152) | |||||||
Financing activities |
||||||||
Issue of shares for cash |
722 |
13,923 | ||||||
Financing costs |
- |
(435) | ||||||
Change in long-term debt |
15,655 |
(1,496) | ||||||
16,377 |
11,992 | |||||||
Foreign exchange loss on cash and cash equivalents |
(1,069) |
(796) | ||||||
Increase (decrease) in cash and cash equivalents |
(16,073) |
43,439 | ||||||
Cash and cash equivalents, beginning of year |
68,036 |
24,597 | ||||||
Cash and cash equivalents, end of year |
$ |
51,963 |
$ |
68,036 | ||||
Interest paid |
$ |
6,742 |
$ |
6,530 | ||||
Interest received |
$ |
256 |
$ |
409 | ||||
BANKERS PETROLEUM LTD. | ||||||||||||||||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||||||||||||||||||
(Expressed in thousands of US dollars, except number of common shares) | ||||||||||||||||||||
Number of common shares |
Share capital |
Contributed surplus |
Currency translation reserve |
Retained earnings |
Total | |||||||||||||||
Balance at December 31, 2013 |
255,681,911 |
$ |
340,305 |
$ |
84,811 |
$ |
6,345 |
$ |
133,214 |
$ |
564,675 | |||||||||
Share-based compensation |
- |
- |
11,040 |
- |
- |
11,040 | ||||||||||||||
Options exercised |
5,002,482 |
21,804 |
(9,004) |
- |
- |
12,800 | ||||||||||||||
Warrants exercised |
400,000 |
1,561 |
(438) |
- |
- |
1,123 | ||||||||||||||
Net income for the year |
- |
- |
- |
- |
128,833 |
128,833 | ||||||||||||||
Currency translation adjustment |
- |
- |
- |
(1,935) |
- |
(1,935) | ||||||||||||||
Balance at December 31, 2014 |
261,084,393 |
$ |
363,670 |
$ |
86,409 |
$ |
4,410 |
$ |
262,047 |
$ |
716,536 | |||||||||
Share-based compensation |
- |
- |
8,543 |
- |
- |
8,543 | ||||||||||||||
Options exercised |
339,935 |
1,375 |
(653) |
- |
- |
722 | ||||||||||||||
RSUs exercised |
133,056 |
- |
- |
- |
- |
- | ||||||||||||||
Net income (loss) for the year |
- |
- |
- |
- |
(3,614) |
(3,614) | ||||||||||||||
Currency translation adjustment |
- |
- |
- |
(2,893) |
- |
(2,893) | ||||||||||||||
Balance at December 31, 2015 |
261,557,384 |
$ |
365,045 |
$ |
94,299 |
$ |
1,517 |
$ |
258,433 |
$ |
719,294 |
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; 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.
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 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.
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 and Eastern Europe. In Albania, Bankers operates and has the full rights to develop the Patos-Marinza heavy oilfield, has a 100% interest in the Kuçova oilfield, and a 100% interest in Exploration Block "F". In 2015 Bankers acquired an 85% interest in the rights to explore the Püspökladány Block concession within the Pannonian Basin located in north eastern Hungary. Bankers' shares are traded on the Toronto Stock Exchange and the AIM Market in London, England under the stock symbol BNK.
SOURCE Bankers Petroleum Ltd.