CALGARY, March 26 – Bankers Petroleum Ltd. (TSX:BNK) is formulating a plan to spin off its U.S. business while announcing a three-year program, which includes capital investment of $370 million in Albania, the company said.
This spending “will be primarily funded from existing working capital and future cash flow,” Bankers said Tuesday, with a production target of 20,000 barrels per day by the end of 2010.
Bankers Petroleum Ltd., Calgary, will ask for Albanian government approval to expand its heavy oil recovery activities in Albania and to restructure its US subsidiary into a separate entity.
An addendum to the Patos-Marinza field development plan in Albania calls for applying vertical and horizontal drilling, waterflood, and thermal recovery techniques in addition to the well reactivations undertaken so far.
Planned activities in the next 3 years include reactivating 250 existing wells, drilling 60 vertical and horizontal wells, waterflooding 50 wells, and installing an eight-well cyclic steam stimulation pilot in 2008 and a 30-well commercial expansion in 2010.
The target exit rates are 7,000 b/d in 2008, 14,000 b/d in 2009, and 20,000 b/d in 2010. The Albanian budget is $80 million in 2008, $120 million in 2009, and $170 million in 2010.
A reserves assessment and capital program for Kucova field is to be announced by mid-2008.
