2015
Corporate
Profile

2015 Corporate Profile

Lengthening
our stride.

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Bankers is working harder than ever to lengthen our stride, creating value for our shareholders, our employees and for the Country of Albania.

Letter to Shareholders

Letter to Shareholders

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Two-thousand and fourteen was another year of significant achievements for Bankers. We delivered on our three-part corporate strategy by 1) executing our primary drilling program resulting in 14% production growth and 160 new wells drilled; 2) expanding our product margin by $3 per barrel through targeted investments in our surface facilities; and 3) validating our Enhanced Oil Recovery (EOR) program by converting an additional 14 wells to injection and booking our first reserves associated with EOR; a foot-hold booking that provides ample running room and reserve growth potential as EOR becomes a focal point of our development strategy moving forward. Overall, Bankers invested $291 million in Albania, achieving record levels of revenue of $583 million and adjusted funds generated from operations of $304 million.

As oil prices began to fall in the second half of 2014, Bankers demonstrated its operational flexibility by reducing our rig count to protect the business. Our ability to quickly reduce our costs, along with our $80 per barrel hedging program provided a soft landing in this lower commodity price environment. We maintain a strong balance sheet with a cash position of over $70 million and we are only half drawn on our $220 million credit facilities. Our 2015 hedging position and sales program provides the Company with cash margins of over $20 per barrel even at $50 Brent.

Because Bankers holds 100% working interest in our development concessions, we are able to control the pace and scale of our investments. In 2015, we will focus on lengthening our stride. We have ongoing efforts to cut our average drilling cost per well by 15% and will continue to reduce operating costs, realizing additional cost savings of $2 - $3 per barrel in the coming years. Based on a highly successful 2014 EOR program, the capital allocated to EOR has increased nearly 30% with 20 planned conversions. We will push our technology forward by further testing of multilateral development and extend our understanding of deeper oil horizons, visible now through our 2014 3D seismic program. Lastly, we are working across the board to reduce inventories, accelerate operating cost savings and stretch the value of every dollar we spend.

With a fully funded 2015 capital program of $153 million dollars, Bankers is well positioned even with tougher commodity prices. Although the current price environment presents challenges, we are excited about the work ahead of us and confident in the Company’s bright future.

It’s been over ten years since Bankers was granted the privilege of developing the Patos-Marinza oilfield and we take pride in being the partner of choice for Albania. We are dedicated to bringing international standards for environmental management, safety performance, and stakeholder engagement to our operations. In 2015, Bankers will invest $3 million into these efforts along with providing additional support to the communities affected by the historic flooding in February.

Bankers is working harder than ever to lengthen our stride to create value for our shareholders, our employees and for the Country of Albania.

On behalf of the Board of Directors,

David French

David L. French

All amounts displayed in US$

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triangle14%

Production Growth

oil drum20,690 bopd

Average 2014 Production

oil rig160 Wells

Drilled in 2014

Two-thousand and fourteen was another remarkable year for Bankers, even with the challenges of the oil markets in the second half of the year. Bankers achieved 14% production growth, with an annual average production of 20,690 bopd and drilled a record 160 wells. Over the year, our team took nearly $3 per barrel out of our operating and sales and transportation costs by focusing our capital on high impact projects. Bankers is well positioned to make the most of the tougher commodity world we’re given with a fully funded 2015 capital program of $153 million dollars. Because we hold 100% rights to the concessions we operate, we have always controlled our pace and scale. This is the year we lengthen our stride.

Operational Strategy

The ability to quickly reduce our drilling costs, in combination with our hedging program gave us a soft landing in this lower price environment. With a cash position of over $70 million and net cash margin of over $20/barrel at $50 Brent, we stack up well against other heavy oilfields in the world.

2014 Netback
Per Barrel

$45.36

We have ongoing efforts to cut our average drilling cost per well by 15% and will continue to reduce operating costs, realizing additional cost savings of $2 - $3 per barrel in the coming years.

  Patos-Marinza Kuçova Total Albania
Proved
Developed Producing 36.3 0.1 36.4
Developed Non-Producing - 0.1 0.1
Undeveloped 86.0 2.6 88.5
Total Proved (1P) 122.3 2.8 125.0
Probable 69.1 9.2 78.3
Total Proved Plus Probable (2P) 191.4 12.0 203.3
Possible 81.0 15.5 96.5
Total Proved, Probable & Possible (3P) 272.8 27.5 300.3
Pie charts
125.0203.3300.3
Million BarrelsMillion BarrelsMillion Barrels
Reserves

Our positive EOR results were recognized for the first time this year by our reserve auditors with a conservative booking of 76 patterns, or 8.6 million barrels on a 1P basis, and 11.3 million barrels on a 2P basis.

Reserves

Bankers is committed to the highest standards for our operations, health, safety, environmental practices and stakeholder engagement. It is our top priority to be a good neighbor, and contribute positively to the Country and communities in which we operate.

Our Responsibility
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