PetroBakken produces 38,700 boepd in Q2
PetroBakken produces 38,700 boepd in Q2
2012-07-09 06:53 ET - News Release
Mr. John Wright reports
PETROBAKKEN PROVIDES SECOND QUARTER 2012 OPERATIONAL UPDATE
PetroBakken Energy Ltd. has provided an update on second quarter 2012 drilling activity and production, with results on pace to meet production and capital guidance for 2012.
Our average production in the second quarter was 38,700 boepd, based on field estimates, comprised of over 14,800 boepd from the Bakken business unit, over 15,600 boepd from the Cardium business unit, and the remainder from our Saskatchewan Conventional and AB/BC business units. Second quarter production levels are after the 3,930 boepd of asset dispositions completed recently and reflect additional shut-in production of approximately 2,300 boepd due to spring break-up conditions. In June, our estimated average production was 37,500 boepd, with an 84% liquids weighting. Persistently wet weather in June caused extended road bans and limited service rig and truck access which, combined with several plant and battery turnarounds throughout the month, resulted in additional shut-in production of approximately 2,000 boepd.
In the second quarter we drilled 15 (9 net) wells and completed 24 (17 net) wells as indicated below:
- 10 (6 net) wells were drilled and 9 (6 net) wells were completed in the Bakken business unit,
- 4 (2 net) wells were drilled and 13 (10 net) wells were completed in the Cardium business unit,
- 1 well was drilled and 2 (1 net) wells were completed in our Saskatchewan Conventional business unit.
Only 6 (3 net) wells were brought on production in June, leaving 23 (15 net) wells in inventory that will be brought on as activity fully resumes post spring break-up. Field conditions are currently improving and we have 13 drilling rigs operating with extensive well servicing operations under way as well.
Facility investments continued in the Cardium business unit in the second quarter as we brought a new battery on-line in West Pembina, allowing us to tie-in associated gas production and provide central oil processing to reduce future trucking costs.
We remain active with our Normal Course Issuer Bid, purchasing approximately 2.5 million shares in the second quarter for a total investment of $30.8 million ($12.34/share). Year-to-date we have purchased approximately 3.3 million shares for a total of $45.2 million ($13.56/share).
Consistent with previous years, the second half of the year will be our period of highest activity and capital intensity. Our capital program has been slightly delayed by approximately three weeks, and we are well positioned to catch up prior to the end of the year. We expect to have 15 drilling rigs operating for most of the second half of 2012, including 7 rigs in the Cardium drilling 57 net wells, 6 rigs in the Bakken drilling 75 net wells, 1 rig in southeastern Saskatchewan drilling 27 net wells, and 1 rig drilling 4 net wells in our emerging plays in Alberta. Our balance sheet liquidity position remains exceptionally strong with approximately $1.1 billion of available capacity under our facility at June 30, 2012. With approximately 75% of our planned wells for 2012 yet to be drilled, we anticipate continued production growth during the second half of the year and reiterate our 2012 exit rate production guidance for 2012 of 52,000 to 56,000 boepd.
We seek Safe Harbor.