Third Quarter 2017 Operations Review
- ARC achieved record production of 129,526 boe per day in the third quarter of 2017, with natural gas production of 550 MMcf per day (71 per cent of total production) and crude oil and liquids production of 37,926 barrels per day (29 per cent of total production).
- Third quarter 2017 average daily production increased 14 per cent relative to the second quarter of 2017, as production at the Dawson Phase III facility was ramped up through the quarter following its early start-up in June, and as new crude oil wells at Tower were brought on production.
- Capital investment in the third quarter of 2017 was predominantly directed at drilling and completion activities in the Montney, with a continued focus on the Lower Montney horizon. Third quarter 2017 capital expenditures, before land and net property acquisitions and dispositions, of $178.4 million included the drilling of 28 operated wells (18 crude oil wells and 10 natural gas and liquids-rich natural gas wells).
- 2017 year-to-date capital expenditures, before land and net property acquisitions and dispositions, totaled $584.6 million, and included 94 wells drilled (54 crude oil wells, 39 natural gas and liquids-rich natural gas wells, and one disposal well).
- Third quarter 2017 land spending included a $77 million strategic investment at Attachie West, with the addition of 21 net Montney sections to ARC’s land position.
- 2017 year-to-date production of 119,408 boe per day was made up of 510 MMcf per day of natural gas and 34,390 barrels per day of crude oil and liquids. ARC maintains its full-year 2017 annual production guidance to be in the range of 120,000 to 124,000 boe per day and expects its 2017 exit rate to be in excess of 130,000 boe per day. Fourth quarter 2017 production levels are expected to be similar to the third quarter of 2017.
(Three Months ended September 30th)
|Crude Oil (bbl/d)||25,020||29,642|
|Natural gas (MMcf/d)||549.6||466.7|
|Total Production (boe/d)||129,526||115,205|
The following table summarizes the companies production by core area for three months ended September 30, 2017:
|Core Area||Total (boe/d)||Oil (bbl/d)||Condensate (bbl/d)||Gas (MMcf/d)||NGLs (bbl/d)|