PR Newswire
CALGARY, May 5, 2015
CALGARY, May 5, 2015 /PRNewswire/ - Bankers Petroleum Ltd. ("Bankers" or the "Company") (TSX: BNK, AIM: BNK) is pleased to provide its 2016 first quarter financial and operational results.
During the first quarter, Bankers achieved a cash margin of US$6.91 per barrel. All amounts listed in this news release are in US dollars unless otherwise stated.
"The first quarter was challenging for the Company. We navigated the volatile and competitive heavy oil commodity markets and maintained firm footing as a business. At the same time, it was an exciting quarter, as the proposed acquisition by Geo-Jade Petroleum Corporation ("Geo-Jade") brings forth the opportunity for shareholders to crystallize value at a significant premium to the prevailing market valuation," commented President and Chief Executive Officer, David French. "Bankers has been working alongside Geo-Jade to complete the necessary steps to ensure a timely close of the proposed transaction. Our Management team and Board of Directors remain in full support of the transaction, and believe it to be in the best interest of shareholders."
Results at a Glance |
Three Months Ended | ||||
($000s, except as noted) |
March 31, 2016 |
December 31, 2015 |
March 31, 2015 | ||
Financial |
|||||
Oil revenue |
33,091 |
56,880 |
72,404 | ||
Net operating income |
3,448 |
23,235 |
24,868 | ||
Net income (loss) |
(11,971) |
(8,391) |
879 | ||
Basic (US$/share) |
(0.05) |
(0.04) |
0.00 | ||
Diluted (US$/share) |
(0.05) |
(0.04) |
0.00 | ||
Funds generated from operations |
1,447 |
34,326 |
24,890 | ||
Basic (US$/share) |
0.01 |
0.13 |
0.10 | ||
Capital expenditures |
12,676 |
24,651 |
49,945 | ||
Operating |
|||||
Average production (bopd) |
17,363 |
18,137 |
19,767 | ||
Average sales (bopd) |
17,280 |
18,558 |
20,283 | ||
Average Brent oil price (US$/barrel) |
33.94 |
43.76 |
53.94 | ||
Average realized price (US$/barrel) |
21.04 |
33.31 |
39.66 | ||
Netback (US$/barrel) |
2.19 |
13.60 |
13.62 | ||
Cash margin (US$/barrel) |
6.91 |
24.01 |
23.32 | ||
March 31, 2016 |
December 31, 2015 |
March 31, 2015 | |||
Cash and restricted cash |
52,996 |
69,141 |
57,842 | ||
Working capital |
144,211 |
159,868 |
174,209 | ||
Total assets |
1,238,380 |
1,261,390 |
1,264,256 | ||
Long-term debt |
95,188 |
98,628 |
98,872 | ||
Shareholders' equity |
708,318 |
719,294 |
718,552 |
Highlights
Bankers reached several key financial and operational achievements during the first quarter of 2016 as described below:
Arrangement Agreement:
Operational Highlights:
Product Margin Highlights:
Financial Highlights:
Outlook:
Production in the second quarter to date is 16,704 bopd, 3.5% lower than the first quarter average of 17,363 bopd. The Company is focused on optimization of current production levels and is monitoring the economic return of all wells in accordance with the current oil price environment.
Activity in the second quarter includes 2 to 4 additional well conversions to injection to expand the EOR program, completion of the Pad D and Pad H vapor recovery units for gas conservation, completion of the Pad D inlet expansion and west emulsion gathering system to improve transportation costs and treating efficiency. The producing water and polymer patterns continue to perform well and Bankers continues to monitor production from the fifty-four (54) existing patterns.
In the second half of the year, Bankers' activity focuses on further expanding the EOR program with up to 12 additional injector conversions, managing existing production and drilling new horizontal wells as commodity price improvement allows.
Transaction Update:
Bankers and Geo-Jade continue to work together to complete the necessary steps to ensure a timely close of the previously announced corporate transaction ("Arrangement"). Bankers has filed its Management Information Circular (the "Circular") and related proxy materials on SEDAR and its website (www.bankerspetroleum.com), in advance of the Company's special meeting of shareholders to be held on May 31, 2016 (the "Special Meeting"). The purpose of the Special Meeting is to seek shareholder approval of the Arrangement with affiliates of Geo-Jade.
Benefits of the Arrangement include:
Shareholder Voting:
Bankers' Board of Directors unanimously recommends that shareholders vote in favor of the Arrangement.
Shareholders who have questions regarding the Arrangement or require assistance with voting may contact the Proxy Solicitation Agent below:
Laurel Hill Advisory Group
Toll Free: 1-877-452-7184
International: +1 416-304-0211 outside Canada and the US
By Email: [email protected]
Special Meeting for Shareholders:
The Special Meeting will be held at The Metropolitan Centre (Strand/Tivoli Rm), 333 4th Avenue SW, Calgary, Alberta on Tuesday, May 31, 2016 at 3:00 p.m. (Calgary time).
Bankers will provide further information with respect to the timing of closing of the Arrangement and the delisting of the Bankers Shares from the TSX and AIM as updates become available.
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) | ||||||
2016 |
2015 | |||||
Revenues |
$ |
33,091 |
$ |
72,404 | ||
Royalties |
(4,231) |
(10,144) | ||||
Revenues, net of royalties |
28,860 |
62,260 | ||||
Realized gain on financial commodity contracts |
7,423 |
14,130 | ||||
Unrealized loss on financial commodity contracts |
(3,800) |
(2,039) | ||||
Total operating revenues |
32,483 |
74,351 | ||||
Operating expenses |
17,717 |
23,495 | ||||
Sales and transportation expenses |
7,695 |
13,897 | ||||
General and administrative expenses |
7,141 |
4,652 | ||||
Contract settlement expenses |
- |
355 | ||||
Depletion and depreciation |
26,658 |
30,119 | ||||
Share-based compensation |
252 |
1,182 | ||||
Total expenses |
59,463 |
73,700 | ||||
Operating income (loss) |
(26,980) |
651 | ||||
Net finance expense |
(164) |
(8,888) | ||||
Loss before income tax |
(27,144) |
(8,237) | ||||
Income tax (expense) recovery |
||||||
Current |
(267) |
- | ||||
Deferred |
15,440 |
9,116 | ||||
15,173 |
9,116 | |||||
Net income (loss) for the period |
(11,971) |
879 | ||||
Other comprehensive income (loss) |
||||||
Currency translation adjustment |
476 |
(1,420) | ||||
Comprehensive loss for the period |
$ |
(11,495) |
$ |
(541) | ||
Basic earnings (loss) per share |
$ |
(0.046) |
$ |
0.003 | ||
Diluted earnings (loss) per share |
$ |
(0.046) |
$ |
0.003 |
BANKERS PETROLEUM LTD. | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||
(Unaudited, expressed in thousands of US dollars) | ||||||||
ASSETS | ||||||||
March 31 2016 |
December 31, 2015 | |||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
37,958 |
$ |
51,963 | ||||
Restricted cash |
15,038 |
17,178 | ||||||
Accounts receivable |
53,752 |
56,592 | ||||||
Inventory |
4,316 |
4,597 | ||||||
Deposits and prepaid expenses |
81,219 |
67,514 | ||||||
Financial commodity contracts |
16,200 |
20,000 | ||||||
208,483 |
217,844 | |||||||
Non-current assets |
||||||||
Property, plant and equipment |
1,019,130 |
1,034,791 | ||||||
Exploration and evaluation assets |
10,767 |
8,755 | ||||||
$ |
1,238,380 |
$ |
1,261,390 | |||||
LIABILITIES | ||||||||
Current liabilities |
||||||||
Accounts payable and accrued liabilities |
$ |
40,604 |
$ |
39,156 | ||||
Income tax liability |
1,032 |
765 | ||||||
Current portion of long-term debt |
22,636 |
18,055 | ||||||
64,272 |
57,976 | |||||||
Non-current liabilities |
||||||||
Long-term debt |
95,188 |
98,628 | ||||||
Decommissioning obligation |
29,655 |
29,264 | ||||||
Deferred tax liabilities |
340,947 |
356,228 | ||||||
530,062 |
542,096 | |||||||
SHAREHOLDERS' EQUITY | ||||||||
Share capital |
365,045 |
365,045 | ||||||
Contributed surplus |
94,818 |
94,299 | ||||||
Currency translation reserve |
1,993 |
1,517 | ||||||
Retained earnings |
246,462 |
258,433 | ||||||
708,318 |
719,294 | |||||||
$ |
1,238,380 |
$ |
1,261,390 | |||||
BANKERS PETROLEUM LTD. | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
FOR THE THREE MONTHS ENDED MARCH 31 | ||||||
(Unaudited, expressed in thousands of US dollars) | ||||||
2016 |
2015 | |||||
Cash provided by (used in): |
||||||
Operating activities |
||||||
Net income (loss) for the period |
$ |
(11,971) |
$ |
879 | ||
Depletion and depreciation |
26,658 |
30,119 | ||||
Accretion of long-term debt |
220 |
250 | ||||
Accretion of decommissioning obligation |
352 |
315 | ||||
Unrealized foreign exchange gain |
(2,691) |
(778) | ||||
Current income tax expense |
267 |
- | ||||
Deferred income tax recovery |
(15,440) |
(9,116) | ||||
Share-based compensation |
252 |
1,182 | ||||
Unrealized loss on financial commodity contracts |
3,800 |
2,039 | ||||
1,447 |
24,890 | |||||
Change in non-cash working capital |
2,918 |
7,839 | ||||
4,365 |
32,729 | |||||
Investing activities |
||||||
Additions to property, plant and equipment |
(10,664) |
(49,818) | ||||
Additions to exploration and evaluation assets |
(2,012) |
(127) | ||||
Restricted cash |
2,140 |
(591) | ||||
Change in non-cash working capital |
(9,237) |
(5,718) | ||||
(19,773) |
(56,254) | |||||
Financing activities |
||||||
Issue of shares for cash |
- |
211 | ||||
Change in long-term debt |
1,081 |
7,762 | ||||
1,081 |
7,973 | |||||
Foreign exchange gain (loss) on cash and cash equivalents |
322 |
(233) | ||||
Decrease in cash and cash equivalents |
(14,005) |
(15,785) | ||||
Cash and cash equivalents, beginning of period |
51,963 |
68,036 | ||||
Cash and cash equivalents, end of period |
$ |
37,958 |
$ |
52,251 | ||
Interest paid |
$ |
222 |
$ |
45 | ||
Interest received |
$ |
87 |
$ |
96 |
BANKERS PETROLEUM LTD. | |||||||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||||
(Unaudited, 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, 2014 |
261,084,393 |
$ |
363,670 |
$ |
86,409 |
$ |
4,410 |
$ |
262,047 |
$ |
716,536 |
Share-based compensation |
- |
- |
2,346 |
- |
- |
2,346 | |||||
Options exercised |
100,000 |
403 |
(192) |
- |
- |
211 | |||||
Net income for the period |
- |
- |
- |
- |
879 |
879 | |||||
Currency translation adjustment |
- |
- |
- |
(1,420) |
- |
(1,420) | |||||
Balance at March 31, 2015 |
261,184,393 |
$ |
364,073 |
$ |
88,563 |
$ |
2,990 |
$ |
262,926 |
$ |
718,552 |
Share-based compensation |
- |
- |
6,197 |
- |
- |
6,197 | |||||
Options exercised |
239,935 |
972 |
(461) |
- |
- |
511 | |||||
RSUs exercised |
133,056 |
- |
- |
- |
- |
- | |||||
Net loss for the period |
- |
- |
- |
- |
(4,493) |
(4,493) | |||||
Currency translation adjustment |
- |
- |
- |
(1,473) |
- |
(1,473) | |||||
Balance at December 31, 2015 |
261,557,384 |
$ |
365,045 |
$ |
94,299 |
$ |
1,517 |
$ |
258,433 |
$ |
719,294 |
Share-based compensation |
- |
- |
519 |
- |
- |
519 | |||||
Net loss for the period |
- |
- |
- |
- |
(11,971) |
(11,971) | |||||
Currency translation adjustment |
- |
- |
- |
476 |
- |
476 | |||||
Balance at March 31, 2016 |
261,557,384 |
$ |
365,045 |
$ |
94,818 |
$ |
1,993 |
$ |
246,462 |
$ |
708,318 |
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.