RE:Sunrise Gas is Only Partly Shut-in.According to the update:
- Sunrise Update – Natural gas production at Sunrise remains curtailed by approximately 250 MMcf per day (approximately 42,000 boe per day) due to persistently low natural gas prices. As a result, ARC expects third quarter production to average between 315,000 boe per day and 330,000 boe per day, with a higher percentage of liquids relative to the first six months of 2024 reflecting curtailed natural gas volumes and growth from its condensate-rich assets.
- Natural gas production curtailments and strong well productivity is expected to result in lower capital spending than originally planned at Sunrise in 2025, leading to higher free funds flow as natural gas prices recover.
I forgot to mention the part about lower cap-ex and higher FFF. Just keeps getting better. ;-)
GLTA ARX BULLS
Quintessential1 wrote: According to ARX's Q2 MD&A 364.1 MMcf/d was produced at Sunrise during Q2.
They stated they shut in 250 MMcf/d while also redirecting a percentage of condensate rich production from weaker station 2 pricing to AECO through dual-connected infrastructure transport ability so roughly a little over 110 MMcf/d being produced and sold to pay for Sunrise costs?
It appears that they are hedging the lower economic dry gas with their higher value wet gas and leaving the ability to respond to higher natural gas prices when and if they occur.
Like in winter or when a 14 MTPA LNG facility starts up. Hopefully both. ;-)
GLTA ARX BULLS