Bankers’ Petroleum



Bankers’ operations are focused on developing heavy oil assets in Albania, which include rights to develop the Patos-Marinza and Kuçova heavy oil fields (both 100% interest) during the 25-year licence period. Bankers has an opportunity to unlock immense potential from its 5.4 billion barrels oil-in-place Patos-Marinza field by applying modern techniques to optimize recovery factors, expand its resource base, and increase production.

All amounts in US$ unless otherwise noted.

Energy — Oil and Gas, Exploration and Production CHANGING TIDES IN THE MARKET;


Investment recommendation Following Bankers’ most recent marketing tour, we believe investor sentiment continues to strengthen. In our view, the shift is attributable to several quarters of solid production growth, a positive reserve update and the company’s consistency in meeting production guidance. We also believe that the market has generally become more receptive to international investments and to Bankers’ story in particular.
Investment highlights

In our view, the markets have become more receptive to the risk associated with international E&Ps.
 Given the decline in Brent prices over the last couple of weeks, we believe Bankers’ strong share price performance relates to ongoing marketing efforts by the company.
Valuation We are maintaining our BUY recommendation and increasing our target price from C$6.00 to C$7.25/share.

Our revised target now accounts for 80% of the risked upside in our model. We maintain our view that there will always be some apprehension toward Albania-based investments, which may prevent full recognition of upside potential. At current prices, we project a potential return to target of ~30%.
Risks In additional to general commodity risk, we believe Bankers is subject to country risk associated with its Albania operations. While the company has increased efforts to improve netbacks, we believe potential large- scale enhanced recovery efforts


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