RC has drilled 37 of the initial 40 start-up wells, while 28 wells have been fracture-stimulated. (Source: Shutterstock)
Western Canadian operator ARC Resources disclosed that the company has divested non-core assets for total cash proceeds of CA$80 million (US$59.2 million), the latest in a number of dispositions by the Montney pure player.
ARC Resources said the non-core assets were not Montney Shale but did not provide additional details. The company said proceeds from the sale will be allocated to share repurchases.
In February, the company reported selling CA$44 million (US$32.6 million) of assets in the fourth quarter, bringing its 2023 total to CA$73.8 million (US$54.8 million), as it high-graded its portfolio. Proceeds from the fourth-quarter divestments were also used in stock buybacks.
The company additionally updated its Attachie and Sunrise developments.
ARC Resources said Phase I of Attachie remains on track, with initial commissioning volumes anticipated in fourth-quarter 2024. Plant construction is over 90% complete and drilling and completion operations are progressing on schedule.
ARC has drilled 37 of the initial 40 start-up wells, while 28 wells have been fracture-stimulated. Full production is expected in 2025. Phase I includes processing capacity of 40,000 boe/d, including 60% condensate and NGLs and a 90 MMcf/d natural gas processing facility.
Like its U.S. counterparts, ARC Resources’ Sunrise project’s natural gas production remains curtailed by approximately 250 MMcf/d due to persistently low natural gas prices.
ARC said it expects third quarter production to average between 315,000 boe/d and 330,000 boe/d, with a higher percentage of liquids relative to the first six months of 2024.
Curtailments and strong well productivity is expected to result in lower capital spending in 2025, the company said.
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