Advantage Oil & Gas Ltd. (ticker: AAV) reported a net income of $95 million for 2017, or $0.51 per share.
The company said that the liquids rich wells at Wembley and Progress in Alberta contributed to this positive net income. In Q4 2017, net income was $21.4 million, or $0.12 per share.
Making progress at Wembley, Valhalla and Progress
Advantage’s first delineation well at Wembley demonstrated a flow rate of 1,312 BOEPD with 819 Bbls/d of propane plus (C3+) hydrocarbon liquids (a yield of 277 Bbls/MMcf) including wellhead condensate/oil of 624 Bbls/d. The first delineation well at Progress demonstrated a flow rate of 624 BOEPD with 172 Bbls/d of C3+ hydrocarbon liquids, including 75 Bbls/d of wellhead condensate/oil.
At Valhalla, design and permitting is underway to construct an initial facility installation which includes 40 MMcf/d of compression and liquids handling equipment to collect and transport natural gas and liquids for processing at Advantage’s 100% owned Glacier gas plant. This facility is scheduled to be completed in the fourth quarter of 2018.
Production
- The company produced 236 MMcfe/d (39,315 BOEPD) in 2017
- In Q4 2017, Advantage produced 245 MMcfe/d (40,857 BOEPD)
2018
Advantage said that 2018 production guidance includes a slight reduction in production volumes during the second quarter of 2018, followed by a continued increase through the second half of 2018 to reach production guidance of 255-265 MMcfe/d.
The first quarter is anticipated to be 242-246 MMcfe/d and approximately 3% lower in the second quarter of 2018 to accommodate a short plant outage in order to complete the integration of new equipment and commissioning as part of the Glacier gas plant expansion.
Average liquids production for 2018 is targeted at 1,900 Bbls/d, exiting the year at 2,400 Bbls/d. Advantage’s $175 million capital program for 2018 is weighted approximately 60% to the first half of the year, with the majority of spending occurring during the first quarter including completion of the Glacier Gas Plant expansion.
