Fourth Quarter 2013 Operations Review
- ARC achieved record fourth quarter and full year average production of 100,883 boe per day and 96,087 boe per day, respectively. Fourth quarter production was up five per cent from the fourth quarter of 2012 and full year 2013 average production was three per cent higher than 2012. Higher production at Ante Creek and Parkland/Tower along with strong performance at Pembina contributed to the increase in 2013.
- ARC commenced the initial flow of restricted volumes of oil and natural gas production through its new Parkland/Tower gas processing and liquids handling facility late in the fourth quarter of 2013. Construction of the new facility was completed safely and ahead of schedule.
- Fourth quarter funds from operations were $237.8 million ($0.76 per share), up 14 per cent from the fourth quarter of 2012. Full year 2013 funds from operations were $861.8 million ($2.76 per share), 20 per cent higher than 2012. The increase in fourth quarter and full year 2013 funds from operations was primarily due to higher production and higher crude oil and natural gas prices in 2013.
- ARC drilled 26 gross operated wells in the fourth quarter of 2013, resulting in 167 gross operated wells being drilled in 2013 (83 per cent oil wells and 17 per cent gas and natural gas liquids wells).
- ARC completed $15.9 million and $50.7 million of land purchases and “tuck-in” acquisitions in key development areas during the fourth quarter and full year 2013, respectively. The acquisitions targeted the Montney and Pembina Cardium regions.
- ARC grew its Montney land holdings from 724 net sections to 899 net sections during 2013 with the most significant additions being at Ante Creek and Attachie.
Q4 2013 Production
(Three Months ended December 31, 2013)
|Crude Oil (bbl/d)||35,542||32,938|
|Natural gas (mmcf/d)||359.4||348.2|
|Natural Gas Liquids (bbl/d)||2,868||2,978|
|Total Production (boe/d)||100,883||95,725|
The following table summarizes the companies production by core area for three months ended December 31, 2013:
|Core Area (1)||Total (boe/d)||Oil (bbl/d)||Condensate (bbl/d)||Gas (mmcf/d)||NGL (bbl/d)|
|South Central AB||11,120||4,233||96||39.3||235|
|Southeast SK & MB||11,600||11,279||63||1.2||56|
(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.