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Kelt Provides an Operations Update and Increases Its 2022 Capital Expenditure Budget by 13% to $300 Million
Calgary, Alberta--(Newsfile Corp. - July 6, 2022) - Kelt Exploration Ltd. (TSX: KEL) ("Kelt" or the "Company") is providing an operations update and changes to its capital expenditure budget for 2022.
Energy related commodity prices during the first half of 2022 have increased substantially compared to the previous year. The global economy staged a recovery in energy demand as the world began to ease away from lockdowns and business interruptions experienced in 2020 and 2021 due to the COVID-19 pandemic. The pace of near-term energy supply growth continues to be negatively affected by the massive reductions in capital investment on major energy projects around the world, creating a tight supply-to-demand balance.
Kelt's board of directors has approved an increase to the Company's capital expenditure program for 2022. Kelt expects to spend $300.0 million in 2022, up 13% from its previous forecast of $265.0 million. By increasing capital expenditures during the second half of 2022 on its large inventory of high rate of return drilling opportunities, the Company is able to take advantage of historically high oil and gas prices resulting in higher rates of return on invested capital and setting the Company up for significant production increases in 2023