At $56.60 WTI, Bellatrix targets production volumes between 35 MBOEPD and 37 MBOEPD
Bellatrix Exploration Ltd. (ticker: BXE) announced a 2018 capital budget of $60 to $80 million. This budget is designed to create average production volumes of between 35,000 to 37,000 BOEPD.
The 2018 capital budget incorporates forward pricing expectations of approximately US$56.50/bbl WTI and $1.70/GJ AECO, underpinned by strong commodity price risk management protection.
Bellatrix has recently diversified its natural gas price exposure through physical sales contracts that give the company access to the Dawn, Chicago, and Malin natural gas pricing hubs. The contracts run from February 2018 through October 2020 and cover approximately 45 MMcf/d.
Bellatrix completed its drilling program in mid-November with 2 gross (1.5 net) Spirit River liquids rich natural gas wells spud during the fourth quarter. Completion and tie-in operations during the fourth quarter included 6 gross (4.3 net) Spirit River wells and 1 gross (1.0 net) Cardium well.
Based on field estimates, current production is approximately 36,600 BOEPD, ahead of the company’s previously announced exit rate guidance. Fourth quarter production volumes are expected to average approximately 36,500 BOEPD, contributing to anticipated full year 2017 average production of approximately 36,750 BOEPD.
Bellatrix plans to deliver higher production volumes during the first quarter with lower production volumes anticipated in the second quarter given a 25% higher first quarter 2018 AECO forward strip price compared with the second quarter of 2018.
Company objectives
- Completing construction of Phase 2 of the Bellatrix Alder Flats deep cut gas plant with commissioning planned to commence early in the second quarter of 2018
- A flexible drilling program focused on Spirit River liquids rich natural gas investment opportunities and higher liquids weighted opportunities in the Cardium play
- Continuing to work on cost suppression activities through ongoing technological and operationally focused initiatives
