Crescent Point Energy Corp. announced their capital development budget for 2013, set at $1.35 billion.
Crescent Point Energy Corp. announced their capital development budget for 2013, set at $1.35 billion.
Putting this budget into place is expected to increase their average daily production to 112,000 barrels of oil equivalent a day, with an exit rate for 2013 of 114,000 boe.
"In 2012, we advanced new technologies across our major plays and expect to deliver production per share growth greater than 10 per cent. In 2013, we will focus on organic growth and the integration of assets from key acquisitions, and continue to build upon our success over the last couple of years," said Scott Saxberg, president and CEO of Crescent Point.
"The 2013 budget is focussed on the development of our major oil resource plays in the Bakken, Shaunavon and Uinta Basin, and on enhancing our portfolio of emerging resource plays," he added.
Crescent Point plans to spend about $510 million of its budget in the Viewfield Bakken and Flat Lake areas of southeast Saskatchewan, including drilling approximately 163 net wells in the Viewfield area, and 15 net wells at Flat Lake.
The company plans also to continue to invest in infrastructure projects to accommodate the continued growth of their Bakken production, including preliminary spending related to the expansion of the Viewfield gas plant from its current capacity of 30 mmcf to 42 mmcf per day.
With new properties in Utah in the Uinta Basin, the company plans to spend about $242 million, which will include the drilling of 74 net wells.
Crescent Point has also allocated $157 million of the capital budget to their other properties in Saskatchewan and Manitoba, including conventionl assets in southeast Saskatchewan.
Their rail facility at Stoughton has a current capacity of 40,000 barrels of oil per day. "Based on continued positive waterflood response in our core Bakken and Shaunavon resource plays, we have increased our waterflood capital for 2013 relative to 2012," said Saxberg.
The company is also preparing an incremental budget for the second half of 2013, the implementation of which will depend on what the commodity prices are.
The budget as set now is based on forecast pricing of $90 a barrel US WTI, $3.50 per mcf CDN for natural gas, with an exchange rate at par with the U.S. dollar. This includes a 14-per-cent differential with the West Texas Intermediate price, which reflects the current market condition.
