Third Quarter 2013 Operations Review
- ARC achieved third quarter production of 94,515 boe per day, up six per cent from the third quarter of 2012. Strong performance at Pembina and higher production at Ante Creek and Parkland/Tower contributed to increased production.
- Third quarter funds from operations were $220.4 million ($0.71 per share), up 34 per cent from the third quarter of 2012 primarily due to higher production and higher crude oil and natural gas prices in 2013.
- Third quarter development capital expenditures, prior to net property acquisitions, totaled $259.2 million, resulting in year-to-date capital spending of $663.0 million. ARC's capital program focused primarily on oil and liquids-rich opportunities at Parkland/Tower, Ante Creek, Pembina, southeast Saskatchewan and Manitoba along with spending on natural gas development at Dawson.
- ARC drilled 51 gross operated wells in the third quarter of 2013 (45 oil wells, two liquids-rich natural gas wells and four natural gas wells), resulting in 141 gross operated wells being drilled in the first nine months of 2013 (118 oil wells, 14 liquids-rich natural gas wells and nine natural gas wells).
- ARC's board of directors approved an increase to the 2013 capital program from $830 million to $860 million to accelerate certain capital projects originally planned for 2014, to replace divested production and to drill additional wells at Ante Creek, offsetting competitor wells.
- ARC has drilled and completed 16 wells on two pads at Tower and 13 wells on four pads at Parkland which are currently being tied-in to the new facility.
- Construction continued on ARC's 60 mmcf per day Parkland/Tower gas processing and liquids handling facility. Construction is on schedule and commissioning started in the fourth quarter. ARC expects the facility to be on-stream by early 2014 with potential for earlier start-up in late Q4 2013 pending the progress of ongoing commissioning work.
Q3 2013 Production
(Three Months ended September 30, 2013)
|Crude Oil (bbl/d)||31,438||30,732|
|Natural gas (mmcf/d)||348.9||323.2|
|Natural Gas Liquids (bbl/d)||2,687||2,587|
|Total Production (boe/d)||94,515||89,511|
The following table summarizes the companies production by core area for three months ended September 30, 2013:
|Core Area (1)||Total (boe/d)||Oil (bbl/d)||Condensate (bbl/d)||Gas (mmcf/d)||NGL (bbl/d)|
|South Central AB||11,231||4,249||90||39.9||296|
|Southeast SK & MB||11,269||10,990||35||1.0||81|
(1) Provincial and directional references: AB is Alberta, BC is British Columbia, SK is Saskatchewan, MB is Manitoba, NE is northeast, NW is northwest, SE is southeast and SW is southwest.