Capital Budget
2013 - Setting the Stage for Significant Production Growth in 2014
- The 2013 capital budget has been set at a record $830 million with a focus on oil and liquids-rich gas opportunities at Tower in British Columbia, Ante Creek and Pembina in Alberta, Goodlands in Manitoba and various oil properties in southeast Saskatchewan;
- ARC plans to drill 178 gross operated (160 net) wells across our portfolio;
- ARC plans to spend $751 million (91 per cent) of the budget on oil and liquids drilling and infrastructure;
- Total infrastructure spending of $162 million, will include $70 million for the expansion of a gas processing and liquids handling facility at Parkland/Tower in British Columbia, which is expected to be on-stream early in 2014;
- ARC has provided a production target for 2013 of 93,000 to 97,000 boe per day for the year; comprised of approximately 40 per cent crude oil and liquids and 60 per cent natural gas, with exit 2013 production targeted at 100,000 boe per day;
- ARC expects 2014 annual average production to be in excess of 110,000 boe per day, representing greater than 15 per cent production growth relative to 2013;
- The capital program will have a clear focus on optimizing capital efficiencies through active cost management and commercialization of field development through the use of multi-well pad drilling throughout our asset base;
- The primary focus of the 2013 budget is to maximize value by directing more capital to oil and liquids-rich gas projects to capitalize on the strength of crude oil prices, while maintaining gas production. Emphasis on oil opportunities is expected to generate a five per cent increase in 2013 average oil and liquids production relative to 2012;
- Natural gas investment in our world class Dawson Montney play continues to drive our low cost, profitable gas business and holds considerable upside given the outlook for natural gas prices;
- ARC’s strong hedge position, working capital position and available credit capacity will provide ARC with the ability to internally finance the growth component of this budget.
Additional details on ARC's Capital Budget can be found in the news releases below:
[FILELISTING]
-
TitleFile Size
-
317 KB
