TIRANA, Feb. 2 – Citing a sharp drop in international oil prices, Canada-based Bankers Petroleum which operates the Patos-Marinza heavy oilfield in south-western Albania, has revised downward its 2015 programme of investments and production.
Bankers Petroleum, which is the country’s biggest foreign investor and exporter, said it had reduced its 2015 capital program to US$ 153 million, down from a previously announced capital program of $218 million in early December 2014.
“These adjustments have been made to ensure 2015 spending fits within funds generated from operations and cash resources in the latest oil price environment,” said the company in a statement.
The revised 2015 capital program utilizes a $50 per barrel average annual Brent oil price forecast in comparison to the budget announced on December 12, 2014, which was predicated on an annual Brent oil price forecast of $70 per barrel.
“We believe it is prudent with today’s commodity outlook to show capital discipline and preserve our strong balance sheet. This revised budget reflects our rigorous focus on capital and operating cost efficiency with a balance of both short term drilling execution and long term flood expansion of the field,” said David French, Bankers President and CEO.
Bankers anticipates its 2015 average production levels will decrease from its average 2014 production levels by approximately 5 percent on account of reduced drilling activity and shut-in volumes due to marginal economics.
The revised capital program includes $80 million to be spent on the drilling, completion and associated costs of approximately 60 new horizontal wells. The number of active drilling rigs will be reduced from three rigs down to two within 30 days, says the company.
The price of Brent crude oil fell slightly recovered to $53.5 a barrel this week, having dropped by more than 40 percent since its peak in mid-June.
Bankers Petroleum, which has recently made it to the top 100 SEE biggest companies, reported net income of $77.8 million in the first three quarters of 2014, up 67 percent compared to the same period the previous year.
Canadian-based Bankers Petroleum posted record profits of around 62 million dollars in 2013, almost double compared to the previous two years on higher production and oil prices, the company said in its 2013 financial results.
Since 2004, Bankers operates and has the full rights to develop the Patos-Marinza and Kuçova heavy oilfields under a 25-year concession contract with the Albanian government. The Patos-Marinza oilfield is the largest onshore oilfield in continental Europe, holding approximately 5.4 billion barrels of original oil in place. The Kuçova field has 297 million barrels of original-oil-in-place.
