Bankers Petroleum investments in Albania reach $1 bln

TIRANA, Dec. 1 – Canadian-based Bankers Petroleum, which operates the Patos-Marinza heavy oilfield has announced a 2013 capital program of US$247 million, to be fully funded with funds generated from operations. “This represents a record annual activity level and takes Bankers cumulative capital investment in Albania to over $1 billion. The budget has been approved by the Company’s Board of Directors and submitted to the Albanian authorities for their approval,” the company said.
The 2013 capital program will focus on major development activities at the Patos-Marinza oilfield including production and reserves growth through new horizontal and vertical drilling, reactivation and workover of existing wells and implementation of water and polymer flood programs. The Company will also direct capital towards associated field infrastructure and progression of our thermal program.
The 2013 work plan will include expansion of the waterflood program and new drilling at the Ku谶a oilfield as well as exploration drilling in Block F.
Abby Badwi, Bankers Petroleum President & CEO commented, “Our 2013 capital budget is designed to deliver sustainable production growth and to implement the Company’s long term objectives of increasing reserves through primary, secondary and tertiary recovery methods. We will constantly review our projects’ economic returns and prevailing oil prices to allow for flexibility to expand or contract our capital programs to remain funded from our cash flow.”
With five drilling rigs and a budget of $159 million, the Company intends to drill a total of 110 to 120 wells, primarily horizontal production wells, along with horizontal lateral re-drills, vertical delineation, core wells, and water-injection wells. Approximately 70% to 80% of drilling activities will focus on production growth and 20% to 30% of the wells will target new reserves through delineation of zones and areas, both within and outside the field where no reserves have been booked to date.
The 2013 budget includes $10 million for implementation of three waterflood and one polymer flood patterns, which will be expanded in 2014 and beyond to offset field declines and increase recovery of the oil in place.
An additional $7 million will be directed towards the Ku谶a oilfield with focus on expanding the waterflood pilot project, drilling three new wells and, developing localized infrastructure including gathering lines to a centralized oil treating facility. With this capital program Bankers expects to achieve 10% to 15% annual growth from its 2012
average production while continuing to focus capital on reserves growth initiatives. In Albania, Bankers operates and has the full rights to develop the Patos-Marinza heavy oilfield and has a 100% interest in the Ku谶a 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.