CALGARY – Bankers Petroleum Ltd. (TSX:BNK) says it plans a capital spending program of US$215 million in 2012, focusing on major development activities at the Patos-Marinza oilfield in Albania.
The work is to include production and reserves growth drilling, reactivation and workover of existing wells, associated field infrastructure and progression of the thermal program, the company said in a statement Tuesday.
The capital program will also include expansion of the waterflood program at the Kuçova oilfield and exploration drilling on Block F acreage in Albania.
In the Patos-Marinza field, the company has announced a drilling budget of $131 million involving five rigs that will be used to drill 100 horizontal and vertical wells.
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“Drilling activities will share a balanced focus between production growth and targeting new reserves through delineation of zones and areas both within the field itself and also other potential oil accumulations within the concession area where no reserves have been booked to date,” it said.
Reactivation of old vertical wells will continue with an $18-million budget to reactivate up to 60 wells in 2012.
With this drilling and reactivation program the company said it expects to achieve 30 per cent year-over-year growth from its 2011 production average and expects significant reserves growth by the end of 2012.
Meanwhile, steam injection has commenced into the first horizontal pilot well. The $4-million thermal pilot capital allocation will be spent on energy sources for steam generation and monitoring the two horizontal cyclical steam pilot wells throughout the year.
Other plans call for $12-million in spending on the Kuçova oilfield focused on expanding the company’s waterflood pilot project into the Ciflik and Arreza pools as well as developing localized infrastructure including gathering lines to a central oil treating facility.
Two exploration wells are also planned for 2012 in Block F and comprise the majority of the $5-million capital expenditure in the block for the year.
Bankers said it expects to fully fund its 2012 capital program with money generated from operations.
Bankers Petroleum Ltd. is a Canadian-based oil and gas exploration and production company with operations in Albania.
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