RE:2013 reseve report is out A few brief extracts from Peyto update that were particularlyt interesting to me:
- For the year ended December 31, 2013, Peyto built a record 38,400 boe/d of new production at a cost of $15,100/boe/d.
- At year end, P+P reserves of 468 MMboes (inclusive of 628 future locations) had been assigned to just 12% of Peyto's total Deep Basin rights.
- For 2014, InSite's independent engineering analysis is forecasting the total base production (all wells on production at Dec. 31, 2013) to decline to approximately 45,300 boe/d by December, 2014(a 37% rate which overall rate is increased a little by the number of wells that were brought on-stream in late 2013).
- The commodity price forecast used by the independent engineers in this year's evaluation was less than last year which had the effect of reducing the Net Present Value of all reserve categories.
- At year end 2013, Peyto's estimated net debt had increased by $284.1 million to $946.5 million
The threadmill effect of horizontal well depletions is a demanding environment in which only very well managed companies can continue to grow impressively,
Peace,
Good Decision-making to All,
ElJ