Energy XXI Gulf Coast, Inc. (ticker: EXXI) has approved a 2018 capital expenditure budget in the range of $145-$175 million, which includes funding of EGC’s most active drilling program since 2014, as well as recompletions, facilities improvements, plugging and abandonment (P&A) expenditures and other capital investments.
CEO and President Douglas E. Brooks said, “We have contracted a rig that is scheduled to begin drilling our six-well program in late February that will be concentrated in our core central Gulf of Mexico region. The program includes three low-risk development locations, a water injection well to optimize production in the West Delta area and two exploitation locations that could have a meaningful impact on production and proved reserves if successful.”
2018 CapEx
EGC forecasts 2018 total capital expenditures to be between $145-$175 million. This includes $55-$65 million related to drilling six new wells, $10-$15 million for facility upgrades and optimization and $8-$10 million for seven to nine recompletions.
The company has contracted the White Fleet “WFD 350” jack-up rig to drill wells in the West Delta and South Timbalier areas. Drilling operations are expected to begin in late February and continue through 2018, EGC said.
In addition to drilling, the company also plans to spend between $50-$60 million on P&A projects and between $18-$22 million on capitalized general and administrative costs.
