BNK.to earns 12.27 Million US in Q3

TSX: BNK

Last Price:$2.55

Change:$-0.09

Volume:298,689

http://www.bankerspetroleum.com/

House Positions for C:BNK from 20121113 to 20121113

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
33 Canaccord	93,200	242,060	2.597	0			93,200	-242,060
10 FirstEnergy	34,900	90,740	2.60	0			34,900	-90,740
7 TD Sec	49,240	127,388	2.587	23,990	62,296	2.597	25,250	-65,092
39 Merrill Lynch	25,700	66,418	2.584	4,200	10,874	2.589	21,500	-55,544
19 Desjardins	4,800	12,518	2.608	280	724	2.586	4,520	-11,794
82 Stifel Nicholas	11,212	28,653	2.556	7,427	19,385	2.61	3,785	-9,268
85 Scotia	3,475	8,920	2.567	2,700	6,993	2.59	775	-1,927
124 Questrade	500	1,300	2.60	0			500	-1,300
58 Qtrade	0			75	195	2.60	-75	195
25 Odlum	0			1,000	2,550	2.55	-1,000	2,550
81 HSBC	0			2,527	6,513	2.577	-2,527	6,513
9 BMO Nesbitt	5,000	13,000	2.60	7,890	20,524	2.601	-2,890	7,524
15 UBS	100	262	2.62	4,100	10,633	2.593	-4,000	10,371
101 Newedge	1,500	3,861	2.574	5,900	15,362	2.604	-4,400	11,501
99 Jitney	2,000	5,240	2.62	7,000	18,000	2.571	-5,000	12,760
89 Raymond James	0			5,000	13,050	2.61	-5,000	13,050
80 National Bank	0			5,250	13,402	2.553	-5,250	13,402
53 Morgan Stanley	2,612	6,755	2.586	7,900	20,400	2.582	-5,288	13,645
13 Instinet	14,800	38,427	2.596	27,400	70,884	2.587	-12,600	32,457
90 Barclays	0			20,400	53,171	2.606	-20,400	53,171
79 CIBC	30,800	79,479	2.58	56,900	146,979	2.583	-26,100	67,500
1 Anonymous	6,000	15,650	2.608	41,500	107,420	2.588	-35,500	91,770
2 RBC	6,100	15,651	2.566	60,500	156,967	2.594	-54,400	141,316
TOTAL	291,939	756,322	2.591	291,939	756,322	2.591	0	0

Highlights for the quarter and nine months ended Sept. 30, 2012, are:

• For the third quarter of 2012, oil sales averaged 15,715 barrels of oil per day, an increase of 15 per cent compared with 13,667 barrels of oil per day for the same period in 2011, and an increase of 11 per cent compared with 14,169 barrels of oil per day for the preceding quarter. For the nine months ended Sept. 30, 2012, oil sales increased 14 per cent to 14,393 barrels of oil per day from 12,578 barrels of oil per day for the comparable 2011 period.
• Revenue for the third quarter of 2012 increased by 23 per cent to $115.1-million ($79.58 per barrel) from $93.7-million ($74.48 per barrel) in the same period of 2011. Revenue for the third quarter of 2012 represented 73 per cent of the Brent oil price of $110 per barrel. Revenue for the nine-month 2012 period totalled $316.3-million ($80.21 per barrel), an increase of 26 per cent from $251.6-million ($73.26 per barrel) for the same period of 2011.
• Royalties to the Albanian government and related entities were $23.3-million and $18.5-million for the third quarter of 2012 and 2011, respectively (both representing 20 per cent of total revenue). Total royalties were $59.6-million and $45.3-million for the nine months ended Sept. 30, 2012, and 2011, respectively.
• Operating, sales and transportation costs in the third quarter of 2012, originating from Albanian-based companies and their employees, were $33.6-million, compared with $30.3-million for the third quarter of 2011.
• The company recorded net operating income (netback) of $58.2-million ($40.23 per barrel) in the third quarter of 2012, an increase of 30 per cent compared with $44.9-million ($35.71 per barrel) in the same period of 2011. For the nine months ended Sept. 30, 2012, net operating income totalled $158.9-million ($40.29 per barrel), a 20-per-cent increase from $132-million ($38.43 per barrel) for the same period in 2011.
• Funds generated from operations for the third quarter of 2012 were $48.3-million, a 15-per-cent increase compared with $42.1-million for the third quarter of 2011. For the nine months ended Sept. 30, 2012, funds generated from operations were $139.5-million, compared with $115.3-million for the nine months ended Sept. 30, 2011. Included in funds generated from operations is a payment of $3.9-million for a financial commodity contract in August, 2012.
• Capital expenditures in the third quarter of 2012 were $53.5-million. The company drilled 34 wells during the quarter, comprising 31 horizontal wells, one lateral redrill sidetrack well and two core wells in the southern area of the field. Reactivation and recompletion work continued during the quarter. During the same period of 2011, capital expenditures were $65.1-million. For the nine months ended Sept. 30, 2012, capital expenditures totalled $168.9-million, a reduction of 9 per cent from $186.5-million for the comparable 2011 period.
• During the third quarter of 2012, Bankers participated in the bid evaluation process for the privatization of the Albanian national oil company Albpetrol ShA. Although the company's participation was unsuccessful, the winning bid value of 850 million euros attributed to Albpetrol's assets enhances the company's oil fields' valuation and also demonstrates its commitment to expand its business activities in Albania.
• At Sept. 30, 2012, total deposits and prepaid expenses were $29.2-million, compared with $17.5-million at the end of December, 2011, of which $16.6-million and $1.2-million, respectively, are paid to the Albanian court as deposits for procedure purposes on several legal cases. The recoverability of these amounts is dependent on the outcome of these cases. As of Sept. 30, 2012, these amounts were considered recoverable.
• The company is in the process of challenging assessments from the Albanian government tax director negating the previous exemption relief from carbon and circulation taxes on diluent imports. These assessments represent a total of $15-million, covering the last five years. The company was successful in setting aside a recently introduced separate excise tax assessment amounting to $8-million on the company's importation and use of diluent. Other audits have also resulted in an additional assessment of previously exempted value-added taxes for some of the company's subcontractors. Bankers has urged the government of Albania to reconsider its position before proceeding with implementation of this assessment, and is hopeful that these contractual exemptions will continue to be applied.
• The company continues to maintain a strong financial position at Sept. 30, 2012, with cash of $40.1-million and working capital of $106.5-million. Working capital for Dec. 31, 2011, and Sept. 30, 2011, totalled $80.3-million and $73.5-million, respectively.

Financial update

Bankers has commenced discussions with EBRD and IFC, its reserve-based lenders, for an increase to its $110-million credit facility and a term extension that would extend existing repayments, currently scheduled to commence in October, 2013. The existing 2009 facility was based on 2008 year-end reserves; subsequent reserve increases have significantly expanded the company's borrowing base.

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