World Bank to help improve quality, access, and efficiency of Albania’s health care system

February 27, 2015

WASHINGTON, February 27, 2015—The World Bank Group’s Board of Executive Directors today approved Euro 32.1 million in IBRD financing for the Health System Improvement Project in Albania. The total project cost is Euro 36.1 million, with the remainder co-financed by the Government of Albania. The project will support improving the efficiency of care in selected hospitals in Albania, improving the management of information in the health system, and increasing financial access to health services.

Key health system performance indicators in Albania are mixed. While health outcomes are relatively strong by regional standards, quality of care is a significant concern. The sector suffers from inefficiencies and inequities. Out-of-pocket payments of patients accounts for more than half of total expenditures on health.  With only half of the poor covered by social health insurance, increased health spending has pushed more households into poverty. Unofficial payments remain common, particularly in public hospitals.

“The health sector reforms are complex, and there is still a large unfinished agenda,”said Tahseen Sayed, World Bank Country Manager for Albania. “Government has shown strong commitment to undertaking reforms in several key areas, including improving health financing systems and hospital services, pharmaceutical reforms, and expanding social health insurance. The new project will support the health sector reform agenda with the aim to improve access and efficiency of health care services.”

The project builds on the World Bank’s past engagement in the health sector. The project activities will support reforming the hospital sector, improving monitoring and management of service quality and efficiency through the establishment of a health management information system, and reforming the health financing system, including assessing options to expand insurance coverage within the available fiscal space.

“The main beneficiaries of the project include the overall population of Albania, who will benefit from improvements in the efficiency of hospital care services,” said Lorena Kostallari, World Bank Senior Operations Office and Project Leader. “By the end of the project life, it is expected to have a decrease in the total number of acute care beds by 800 beds in selected district hospitals, according to the Hospital Master Plan. As a result of pharmaceutical reform, a reduction by 25 percent in average prices for the 10 most common prescription medicines and the 10 most expensive hospital medicines is foreseen, which will positively influence on the financial protection from health expenditures. The project will enable an increase of health insurance coverage of up to 65 percent for the poor.”

Moreover, specific population groups, including those with priority chronic diseases, will benefit from improved primary care and reduced co-payments for essential, low-cost medicines. This will reduce out-of-pocket payment expenditures. Health sector stakeholders will benefit from capacity-building as well – around 700 staff in public health institutions, including the University Hospital Center of Tirana (QSUT) and regional hospitals, will benefit from training and capacity-building activities.

Since Albania joined the World Bank in 1991, a total of 84 projects comprising over US$2.1 billion of IDA credits and grants and IBRD loans have been provided to the country.

Source: Worldbank.org

BANKERS PETROLEUM ANNOUNCES 2014 YEAR-END RESERVES

March 2nd, 2015

203 Million Barrels of Proved plus Probable (2P) Reserves including 11.3 Million Barrels of EOR Reserves;NPV of US$1.8 billion

CALGARY, March 2, 2015 /CNW/ – Bankers Petroleum Ltd. (“Bankers” or the “Company”) (TSX: BNK, AIM: BNK) announces the results of its December 31, 2014, 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 “This 2014 Reserves update marks an important strategic transition for Bankers.  First, we are pleased with the recognition of our Enhanced Oil Recovery (EOR) program with initial EOR Proved Developed Producing (PDP) and Proved Undeveloped (PUD) reserve bookings. We see EOR as an integral part of our future growth. The 76 patterns booked this year represent less than one-fifth of our current opportunity set at the floodable viscosity ranges in our field.  Second, we have experienced modest communication at 100 metre spacing in our core development area.  While this temporarily impacts our primary-only reserves per well, it will be the right answer for commercial EOR development and subsequent bookings.  Lastly, the shallower depths and higher viscosities of our southern non-core area appear commercially challenged at the current oil price. We will continue to solve for the right technical solution to access these areas, such as the multilateral test last year.  On balance, our ongoing efforts to reduce operating expenses and capital development, validate the potential for EOR, and solve the challenges of our heaviest sands to set us up well for the future.”

Overview

  • First time booking of EOR reserve volumes in Patos-Marinza oilfield at 2.0, 8.6, 11.3 and 13.4 million barrels on a PDP, Proved (1P), Proved plus Probable (2P), and Proved Probable plus Possible (3P) basis, respectively;
  • 1P Reserves decreased 15% to 125.0 million barrels with after tax value discounted at 10% down 40% to US$734 million (representing CAD$3.49 per share);
  • 2P Reserves decreased 12% to 203.3 million barrels with after tax value discounted at 10% down 20% to  US$1.8 billion (representing CAD$8.57 per share);
  • Reserve volume increases resulted from additional future development in the core areas of the Patos-Marinza field following improved rate and recovery performance from the polymer and water-flood EOR patterns implemented, including horizontal drilling on reduced spacing (100 metre) and between 20 to 30 injector conversions per year over the next two years;
  • Reserves volume decreases are largely attributed to deferred development in extension areas of the oilfield where commercial viability is less at current oil prices, secondary pressure support is not planned near term and production techniques are being tested for improved recovery in higher viscosity and lower temperature areas, including the Gorani and southern Driza reservoirs;
  • Main drivers for the decreased valuation are the lower price forecast, revised development activity to focus on core areas of the oilfield and technical revisions to reflect well performance in 200 metre and reduced spacing development in core and extension areas;
  • 2014 Company average production was 20,687 bopd for an annual total volume of 7.6 million barrels (6% of total proved reserves);
  • Reserves Life Index for 1P and 2P is 17 years and 27 years, respectively.

Total Company Reserves Summary

Gross Oil Reserves – Using Forecast Prices (Million barrels)

2014

2013

Patos-Marinza

Kuçova

Total Albania

Patos-Marinza

Kuçova

Total Albania

%

Proved

Developed Producing

36.3

0.1

36.4

40.3

40.3

-10

Developed Non-Producing

0.1

0.1

0.7

0.7

-83

Undeveloped

86.0

2.6

88.5

102.3

3.4

105.7

-16

Total Proved (1P)

122.3

2.8

125.0

143.3

3.4

146.7

-15

Probable

69.1

9.2

78.3

77.0

8.5

85.5

-8

Total Proved Plus Probable (2P)

191.4

12.0

203.3

220.3

11.9

232.2

-12

Possible

81.0

15.5

96.9

104.0

21.4

125.4

-23

Total Proved, Probable & Possible (3P)

272.8

27.5

300.3

324.3

33.3

357.6

-16

Patos-Marinza Contingent and Prospective Resources (Million barrels – P50 Probability Level)

2014

2013

%

Contingent Resource

512

505

1

Prospective Resource

315

259

22

Net Present Value at 10% – After Tax Using Forecast Prices (US$ millions)

2014

2013

%

Patos-Marinza

Kuçova

Total Albania

Patos-Marinza

Kuçova

Total Albania

Proved

Developed Producing

388

1

389

568

568

-32

Developed Non-Producing

1

1

11

11

-89

Undeveloped

327

17

344

614

23

637

-46

Total Proved

715

19

734

1,193

23

1,216

-40

Probable

968

100

1,068

926

98

1,024

4

Total Proved Plus Probable

1,683

119

1,802

2,119

121

2,240

-20

Possible

846

197

1,043

1,003

296

1,299

-20

Total Proved, Probable & Possible

2,529

316

2,845

3,122

417

3,539

-20

 

2014

2013

Reserves Value 10% Discounted, After Tax

CAD$/Share

US$/bbl

CAD$/Share

US$/bbl

1P reserves

$3.49

$5.87

$5.27

$8.29

2P reserves

$8.57

$8.86

$9.72

$9.65

3P reserves

$13.54

$9.47

$15.36

$9.90

Basic shares outstanding as of December 31, 2014, were approximately 261 million (285 million diluted).

Values are based on RPS (Patos-Marinza) and D&M (Kuçova) January 1, 2015, price forecast tables summarized below:

Reserves Evaluator Price Decks – Dated Brent

BRENT Oil Price Forecast US$/bbl

Year

RPS

D&M

2015

70.03

69.00

2016

74.64

75.40

2017

79.50

82.03

2018

84.50

88.90

2019

89.50

96.01

2020

93.85

97.85

2021

95.72

99.72

2022

97.64

101.64

2023

99.59

103.59

2024

101.58

105.58

2025

103.61

107.61

2026

+2.0% Thereafter

+2.0% Thereafter

 

Finding and Development Costs (F&D)

The future development capital has decreased with deferral of activity in the extension areas of the Patos-Marinza oilfield.  The resulting future horizontal well count has decreased from 995 to 882 in the 2P development case and from 984 to 870 in the 1P and 1,082 to 999 in the 3P cases.  In 2014, Bankers drilled 157 new horizontal production wells in Patos-Marinza.

Total future undiscounted capital costs for Patos-Marinza and Kuçova are projected to be US$2.0 billion, US$2.1 billion and US$2.4 billion on a 1P, 2P and 3P basis, respectively.  This represents a 14%, 13% and 11% decrease in future capital on a 1P, 2P, and 3P basis compared to the previous year.  The F&D costs, calculated as total future development capital divided by recoverable reserves excluding currently developed PDP and Proved Developed Non-Producing (PDNP) reserves, are summarized in the table below:

2014

2013

F&D Costs

US$/bbl

US$/bbl

1P reserves

$22.57

$20.45

2P reserves

$12.69

$12.08

3P reserves

$8.95

$7.85

Oil Initially in Place

In Patos-Marinza, the Oil Initially in Place (“OIIP”) volumes in the reserves area remain essentially the same at 2.3 billion barrels and the OIIP outside the reserves area at 2.8 billion barrels in 2014.

The Kuçova OIIP resource estimate remains at 297 million barrels.

Operational Update

The last ten day average production was 20,750 bopd, 2% higher than the fourth quarter of 2014 average.  All wells that had been temporarily shut-in due to limited surface access during the flooding are now returned to production.  These wells continue to be optimized and as they clean-up, are expected to resume previous rates throughout the remainder of the first quarter.

As previously announced, Bankers has now reduced its drilling activity to two drilling rigs.

Source: Bankers Petroleum

IMF Executive Board Completes Second and Third Reviews under Extended Fund Facility Arrangement for Albania and Approves €58.8 Million Disbursement

Press Release No. 15/70

February 23, 2015

The Executive Board of the International Monetary Fund (IMF) today completed the second and third reviews of Albania’s economic performance under a program supported by the Extended-Fund Facility (EFF). The completion of the review enables the authorities to draw an additional amount equivalent to SDR 47.1 million (about €58.8 million), bringing the total disbursements to SDR 94.2 million (about €117.7 million). Continue reading IMF Executive Board Completes Second and Third Reviews under Extended Fund Facility Arrangement for Albania and Approves €58.8 Million Disbursement

IMF Executive Board Approves €1.2 billion Stand-By Arrangement for Serbia

Press Release No. 15/67

February 23, 2015

The Executive Board of the International Monetary Fund (IMF) today approved a three-year, SDR 935.4 million (about €1.2 billion, 200 percent of quota) new Stand-By Arrangement for Serbia. The Serbian authorities have indicated their intention to treat the program as precautionary. Continue reading IMF Executive Board Approves €1.2 billion Stand-By Arrangement for Serbia

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