Canadian Oil & Gas Weekly Report Nov 12 2019

Interesting News

  • Early 2020 budget projections are flat to slightly up, key AECO gas prices are showing improvement this could fuel investment.
  • Murphy Oil Company Ltd. working with Pioneer Engineering Inc. on two new compressor projects 13-31-063-15W5 & 03-34-065-20W5
  • Imperial Oil pump package Lemming battery
  • Rolling Hills Energy 3 well pads for 8+ well permits Provost area
  • Cenovus Energy – new well permit alert is very positive for strong drilling program
  • Japan Canada Oil Sands Limited – new well permit alert is very positive for strong drilling program
  • Teine Energy Ltd – we have a strong negative alert on new well permits that could be an indicator of a weak winter drilling program

First Facility License since July 1 2019 (or greater)

  • Aspenleaf Energy Limited_New Licence_Oil satellite – multiwell _AB_14-10-068-08W5
  • Hammerhead Resources Inc._New Licence_Oil battery – single well _AB_05-20-063-01W6
  • Tervita Corporation_Licence Amendment_Injection/disposal facility – water _AB_01-29-061-04W6

First Well License since July 1 2019 (or greater)

  • CREST JINN PETROLEUM CORPORATION_AB_ST. ALBERT_KIDNEY_15-16-092-04W5_CRUDE OIL

First Wells Drilled Since July 1 2019 (or greater)

  • None

Rigs First Time Drilling Since Apr 1 2019

  • Whitecap Resources Inc._Precision 275_SK_Estevan_MIDALE BEDS_14-26-006-14W2_CRUDE OIL

Other News

  • Kelt  has approved an initial capital expenditure budget of $235.0 million for 2020. Kelt expects to drill 25 gross (25.0 net) wells in 2020 and expects to complete 31 gross (31.0 net) wells in 2020. The Company expects to have 11 gross (11.0 net) wells drilled but un-completed (“DUC”) in 2019 and 5 gross (5.0 net) DUC wells by the end of 2020. The 2020 capital expenditures are expected to be allocated as follows: $155.0 million for drilling and completing wells, $70.0 million for facilities, pipeline and equipment and $10.0 million for land and seismic.  During the first quarter of 2020, Kelt plans to build a pipeline connecting its La Glace field to the Wembley/Pipestone infrastructure so that gas volumes can be processed at the new Tidewater Pipestone Sour Deep-Cut Processing Plant taking advantage of the higher liquids yields expected from the deep-cut plant. Kelt has allocated funds in its 2020 capital expenditure budget to build an oil battery, gas compression and a pipeline gathering system connecting its Oak field to a nearby third party gas plant.
  • Chinook is not compliance with our lender’s net debt to cash flow financial covenant and minimum hedging requirement contained in our demand credit facility.  Line of credit will be reduced.
  • Inplay expect will initially, similar to 2019, approximate AFF based on future commodity pricing 2019 budget $36M.   Average well costs of $1.8 million (drill, complete, equip and tie-in), a 25 percent reduction from $2.4 million spent on our last Pembina program. InPlay does not plan to drill any additional wells in 2019.
  • Granite will commence a recompletion program in the first quarter of 2020
  • Peyto recent strength in, and significantly improved outlook for, AECO natural gas prices, combined with the success of Peyto’s most recent Cardium drilling program has provided the confidence to continue with Peyto’s strategic three-year plan as announced in January of this year. Consistent with that plan, Peyto’s Board of Directors is reviewing a go forward capital program that invests more free cashflow into resource development opportunities. While specifics of the 2020 budget are not yet finalized, a capital program of $250 to $300 million, funded entirely from free cashflow, would add 25,000-30,000 boe/d, based on historic on-stream metrics
  • Bonterra $6 to $7 million expected to be incurred for Q4 2019 drilling.
  • Tourmaline approved a 2020 EP capital program of $900 – 925 million which will result in 2020 average production of 315,000 – 322,500 boepd, unchanged from prior 2020 production guidance.  The 2020 EP capital program is $100 – $125 million less than previous capital guidance, reflecting the continually-improving capital efficiencies realized by the Company.
  • Tamarack’s preliminary 2020 budget anticipates that capital expenditures and average production will remain consistent with 2019 levels and range between $170 to $180 million and 23,500 to 24,500 boe/d, respectively, while the oil and NGL weighting is expected to increase to a range of 64% to 66%.
  • Pieridae budget of $32 million and LNG Development expense budget of $16 million in 2020 production to between 40,000 and 50,000 Boe/d.
  • Athabasca Budget objectives for 2020 include activity focused on a minimal capital spend and alignment with funds flow.
  • Keyera expects to invest between $800 million and $900 million in growth capital in 2019 and between $700 million and $800 million in 2020, excluding acquisitions. A significant portion of the investment next year relates to the Pipestone gas plant and the KAPS liquids pipeline system.
  • Journey has three locations scheduled for its Skiff property. 
  • Obsidian Phase 2 Cardium program 13 remaining wells in the program will be brought on-line throughout the fourth quarter of 2019 which will increase production rates.

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