For 2011, Equal Energy Ltd., Calgary, plans to spend a total of $60 million in capital, heavily weighted to light-oil drilling in its Canadian assets. Equal expects to exit 2010 with daily production between 9,100 and 9,300 barrels of oil equivalent per day (BOE/d).
The company's 2011 capital program will focus on Equal-operated resource plays with the majority of the spending on the Alliance Viking and Lochend Cardium light oil plays. Liquids-rich gas wells are also planned in the Oklahoma Hunton resource in Oklahoma play following first-quarter 2011.
The 2011 capital budget is expected to deliver steady production, while increasing Canadian operating netbacks and overall corporate cash flows by approximately 20%. The three proven resource plays are operated by Equal, so the company has the flexibility to react quickly to variations in cash flow and increase or reduce capital spending as needed to keep debt levels constant.
The capital budget is based on price assumptions of $80 WTI, $4.25 Nymex natural gas, $3.50 AECO gas and an exchange rate of $0.975 CAD/U.S.
Additionally, Equal's $125-million bank operating facility has been reviewed and approved.
Equal holds E&P operations in both Canada and the U.S., primarily in Alberta and Oklahoma.
Recommended Reading
ChampionX’s Aerial Optical Gas Imaging Platform Secures EPA Approval
2025-03-05 - ChampionX Corp.’s aerial optical gas imaging platform combines optical technology with a gimbal system to detect and locate methane leaks.
Baker Hughes, Woodside Partner to Scale Net Power Platform
2025-03-06 - Net Power’s platform uses natural gas to generate power while capturing nearly all CO2 emissions, Baker Hughes said in a news release.
Montana Renewables Closes $1.44B DOE Loan for Facility Expansion
2025-01-13 - The expansion project will lift annual production capacity to about 300 million gallons of sustainable aviation fuel (SAF) and 330 million gallons of combined SAF and renewable diesel.