Bankers Petroleum income drops in 2012

TIRANA, March 19 – Canadian-based Bankers Petroleum, which operates the Patos-Marinza heavy oilfield in southwestern Albania, reported a net income of USD 34.4 million in 2012, down 4 percent compared to 2011 on higher operating expenses and royalties. In 2012, Bankers accomplished several key achievements including record production and cash flow. The Company also invested $222.7 million in capital expenditures during 2012.
Average oil production was 15,020 barrels of oil per day (bopd) 15 percent higher than 2011 average production of 13,051 bopd.
Oil sales averaged 14,808 bopd, compared to 12,784 bopd in 2011, an increase of 16 percent, primarily as a result of the Company’s ongoing horizontal drilling program along with continuation of well reactivations.
Capital expenditures were $222.7 million compared to $242.8 million in 2011. A total of 128 wells were drilled, including 112 horizontal production wells, seven lateral re-drills, four vertical core delineation wells, and four water disposal wells in the Patos-Marinza field, plus one exploration well in Block “F”. In 2011, 84 total wells were drilled.
Royalties to the Albanian Government and related entities were $78.4 million, 23 percent higher than $63.9 million for 2011.
The Company’s capital program in 2013 will be $247 million, fully funded from projected cash flow based on an average $102.50 Brent oil price.
Canada’s Bankers Petroleum, which already successfully operates the Patos-Marinza heavy oilfield and has deals with Albpetrol, also stood a chance after ranking third with a Euro 100 million bid on Albpetrol. Already present and successfully operating in the oil and mining industry, Canadian-based companies are showing increased interest in boosting their investments in Albania. Canada is one of the top four foreign direct investors in Albania with 280 million euros of investments until 2010, ranking after neighbouring Greece and Italy as well as Austria, according to Bank of Albania data.