looks like were heading in the right direction
Bonavista's 2013 capital budget will remain within the range of $420 and $430 million, with a program to drill between 120 and 125 wells within our core areas. This capital program is expected to result in 2013 production volumes of between 73,500 and 74,500 boe per day representing an approximate 7% gain over 2012.
First Quarter 2013 Acquisition and Divestiture Highlights
Deep Basin closed a second acquisition on January 9, 2013 for $72.5 million, adding 2,450 boe per day of production, Complementing our 2012 acquisition of 6,700 boe per day
Bonavista divested of 760 boe per day of non-core assets for $42.3 million in the first quarter of 2011 Collectively, acquisitions totaling $78.2 million offset by divestitures of $42.3 million has resulted in a net acquisition and divestiture capital activity of $36.0 million in the first quarter of 2013.
First Quarter 2013 Operational Highlights
West Central Alberta Core Area
Hoadley Glauconite Liquids Rich Natural Gas:-- rank in the top decile of all North American natural gas plays
2013 drill 12 horizontal wells -- 8 wells have been brought on to prodution -- other 4 wells to be completed in August 2013
Cardium Light Oil:
2013 first quarter drilling 11 horizontal wells -- 7 Horizontal wells Willesden Green area, 4 have been completed--- other 3 wells completed in May 2013
4 wells in the Harmattan field --- have been successfully completed and initial testing indicates positive results.
Our first quarter Cardium program incorporated the use of pad drilling and emerging drilling technology which significantly reduced drilling costs by approximately $200,000 per well. 140 drill locations with 97 horizontal wells drilled over the past four years --- Bonavista plans to drill approximately 20 horizontal wells in 2013.
approximately 4,500 boe per day illustrating 30% year over year growth and representing approximately 35% of total corporate oil volumes.
Ellerslie Liquids Rich Natural Gas: west central Alberta
Newer area 2013 drilling 6 to 8 horizontal wells.
Deep Basin Core Area -- Since 2010 Low Risk
Bonavista drilled six horizontal wells in the first quarter of 2013 ---three Bluesky wells,one Rock Creek well and two Wilrich natural gas wells----- 2,600 boe per day
Current production ----approximately 14,500 boe per day
----access to approximately 210,000 net acres of land to develop
----- operate over 230 mmcf per day of licensed natural gas --drilling inventory to approximately 185 horizontal locations.
plans to drill 15 to 20 horizontal wells in 2013
We anticipate reducing operating expenses to approximately $5.50 per boe in 2013, down nearly 40% from $9.00 per boe in early 2010
Additional Emerging Opportunities
intends to drill 15 to 20 Viking oil wells in the second half of 2013
Blueberry in northeast British Columbia.---up to two horizontal wells planned in the second half of 2013 -- accelerated in conjunction with increased visibility to west coast LNG export
| |
| | Three months | | | |
| | ended March 31, | | % | |
| | 2013 | | 2012 | | Change | |
| Financial | | |
| ($ thousands, except per share) | | |
| Production revenues | 227,493 | | 227,034 | | - | |
| Funds from operations(1) | 110,008 | | 104,635 | | 5 | % |
| | Per share(1) (2) | 0.57 | | 0.63 | | (10 | %) |
| Dividends declared(3) | 37,670 | | 52,183 | | (28 | %) |
| | Per share | 0.21 | | 0.36 | | (42 | %) |
| Net income (loss) | (3,219 | ) | 43,723 | | (107 | %) |
| | Per share(4) | (0.02 | ) | 0.26 | | (108 | %) |
| Adjusted net income(5) | 16,614 | | 40,966 | | (59 | %) |
| | Per share(4) | 0.09 | | 0.25 | | (64 | %) |
| Total assets | 4,157,694 | | 3,959,126 | | 5 | % |
| Long-term debt, net of working capital | 1,065,159 | | 1,151,453 | | (7 | %) |
| Long-term debt, net of adjusted working capital(6) | 1,046,540 | | 1,146,417 | | (9 | %) |
| Shareholders' equity | 2,269,232 | | 2,015,380 | | 13 | % |
| Capital expenditures: | | | | | | |
| | Exploration and development | 115,802 | | 153,807 | | (25 | %) |
| | Acquisitions, net of dispositions | 35,968 | | (58,221 | ) | 162 | % |
| Weighted average outstanding equivalent shares: (thousands)(4) | | |
| | Basic | 194,686 | | 166,253 | | 17 | % |
| | Diluted | 196,709 | | 167,253 | | 18 | % |
| Operating | | | | | | |
| (boe conversion - 6:1 basis) | | | | | | |
| Production: | | | | | | |
| | Natural gas (mmcf/day) | 273 | | 251 | | 9 | % |
| | Natural gas liquids (bbls/day) | 14,746 | | 14,623 | | 1 | % |
| | Oil (bbls/day)(7) | 12,085 | | 13,795 | | (12 | %) |
| | | Total oil equivalent (boe/day) | 72,333 | | 70,202 | | 3 | % |
| Product prices:(8) | | | | | | |
| | Natural gas ($/mcf) | 3.26 | | 2.38 | | 37 | % |
| | Natural gas liquids ($/bbl) | 48.65 | | 50.62 | | (4 | %) |
| | Oil ($/bbl)(7) | 75.05 | | 82.73 | | (9 | %) |
| Operating expenses ($/boe) | 9.16 | | 9.39 | | (2 | %) |
| General and administrative expenses ($/boe) | 1.09 | | 0.96 | | 14 | % |
| Cash costs ($/boe)(9) | 13.25 | | 13.46 | | (2 | %) |
| Operating netback ($/boe)(10) | 19.49 | | 18.94 | | 3 | %
|