Reserves

Bankers' Patos-Marinza EOR Reserves Double

Share Print Bookmark    |    Wednesday,March 02,2016

Bankers Petroleum Ltd. announces the results of its December 31, 2015 , independent reserves evaluation. Evaluations were conducted by RPS Energy Canada Ltd. (RPS) for the Patos-Marinza oilfield, Albania , and by DeGolyer and McNaughton Canada Ltd. (D&M) for the Kuçova oilfield, Albania ; and were prepared in accordance with Canadian National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.

David French , President and CEO commented "The 2015 Reserves update represents a continuation of our successful development plan over the past several years.  The doubling of our booked Enhanced Oil Recovery (EOR) barrels demonstrates the success of the EOR program, and our dedication to prioritize EOR as the most efficient dollars we can spend in this pricing environment. It also marks an inflection point in our Finding and Development Costs, as the transition to EOR development will reduce our forward capital requirements to sustain and grow the business.  We have a deep inventory of future drilling locations and injector conversions, and even modest changes in oil price put us in a very enviable position of low cost operations and development."

Overview:

• EOR reserve volumes doubled in the Patos-Marinza oilfield increasing to 4.6, 14.7, 21.1 and 27.3 million barrels on a Proved Developed Producing (PDP), Proved (1P), Proved plus Probable (2P), and Proved Probable plus Possible (3P) basis, respectively;
• 1P Reserves remained constant at 125 million barrels with after tax value (discounted at 10%) down 12% to US$648 million (representing CAD$3.42 per share);
• 2P Reserves remained constant at 202 million barrels with after tax value (discounted at 10%) down 21% to  US$1.4 billion (representing CAD$7.49 per share);
• Reserves volume increases in the core area of the oilfield resulted from additional future development in the Marinza formation due to horizontal drilling on reduced spacing (100 metres) and the addition of future EOR patterns.
• Reserves volume decreases and overall valuation decreases are attributable to the lower price forecast and resulting reduced development plan in non-core areas, specifically in the Driza Formation in the southern region of the Patos-Marinza oilfield.
• 2015 Company average production was 19,384 bopd for an annual total volume of 7.1 million barrels (6% of total proved reserves);
• Reserves Life Index for 1P and 2P is 18 years and 29 years, respectively.

Total Company Reserves Summary