Earnings Call Fev. 25 2021 - TranscriptFor those who were unable to attend, sometimes it help to read between the lines :
https://seekingalpha.com/article/4490734-baytex-energy-corp-btegf-ceo-edward-lafehr-on-q4-2021-results-earnings-call-transcript
The fun part for me, because it's another positive view of Baytex assets and infrastructure compare to their peers :
Question-and-Answer Session Dennis Fong
Great. Thanks. And then my second question is a little bit more on the operation side, obviously, congrats on the strong well results in the Peavine area. How should we be thinking about the infrastructure in the region? Or are there incremental steps as you obviously generating like additional strong well results? How should we be thinking about kind of the next levels of facilities and so forth, as you continue growing in that asset, if there are any?
Edward LaFehr
Yeah. Well, the beauty of this play is its right in and around our operations base at Harmon Valley and Seal. So it’s our legacy area today producing about 15,000 barrels a day, we have a team in place, we have infrastructure in place, we have a central battery, we’re trucking all of the Peavine barrels into up at Seal. And we’re egressing those barrels through our 90-kilometer operated pipeline to Nipisi, where we intersect with the plains terminal. So we’re in good shape from an infrastructure standpoint, when you do look at our capital, as we’ve outlined in the IR deck, we have put CAD35 million in there to drill 18 wells, there is some road extension pad builds small things we have to do inside the settlement in order to extend and build our leases and get going.
In Q1, there’s a big chunk of that that drives the rest of the year, where we’ve added – in Q4, actually we added 3 pads extended a road, and it’s some minor stuff like that. But overall, everything’s coming along. And that area to the south, by the way, I don’t know if you caught the importance of it. But we’re drilling and have actually completed 6 of 10 wells in Q1 that’s down in that area where we have expanded our infrastructure. And those are extended reach wells going [1.75 to 2 miles on 4 legs] [ph]. It’s a different construct due to what we want to see for the full field development down in that area.
And we’re very excited, it’s the best reservoir we’ve seen, as I said, we’ve got 6 wells down, 3 of them there, 3 of them in the different location. But very exciting areas, the core, the central part of the play, but we’re going to egress those barrels and operate those barrels much in the same way. We’ve done all the rest of it, where it’s being operated by our Peace River legacy team that knows multilateral drilling and operations better than anybody in the business. And we’re sitting in a very strong position with respect to infrastructure, and the costs associated with that are in that CAD35 million we budgeted for the area this year. Did that answer your question, Dennis?
Dennis Fong
Definitely. It did. Appreciate the color. And I’ll turn it back.
Edward LaFehr
Okay.