Baytex back to drilling in Lloydminster area
Baytex heading back to the drill bit in Canadian heavy oil, new CEO incoming
By Deborah Jaremko
Dec. 12, 2016, 1:10 p.m.
Baytex press release is at: http://www.baytexenergy.com/files/pdf/news-releases/2016/2016-12-12%20_2017%20Budget%20Final.pdf
After two years of reduced activity and declining production, Baytex Energy Corp. says it is planning an “active drilling program” in Canada in 2017, focusing mainly on heavy oil at Peace River and Lloydminster.
While 70 percent of the company’s budgeted 2017 capital spend of up to $350 million is earmarked for the Eagle Ford, the remaining 30 percent will be spent in Canada to stabilize production rates and “position for growth.”
“In Canada, after a drilling hiatus, we are excited to get back to work with an active first quarter drilling program,” said Baytex CEO James Bowzer, who in May next year will be succeeded by current president Ed LaFehr.
Baytex says its 2017 development program reflects capital efficiencies on an annual basis of approximately $11,500 per boe/d, or $13,500 per boe/d including facilities.
The company expects to spend about $85 million on the drill bit in Canada in 2017: 11 net multi-lateral horizontal wells and 8 net stratigraphic wells in the Peace River heavy oil play; 52 net wells—majority horizontal—in Lloydminster heavy oil; and two net natural gas wells at Pembina.
[Here is a map of Baytex’s Lloydminster operations from their website]
In the Eagle Ford, Baytex expects to have four to five drilling rigs and two completion crews working on its lands, up from two to three rigs in the third quarter of 2016.
“At this pace of development, we expect to bring approximately 34 net wells on production in 2017. Our costs in the Eagle Ford continue to decrease with wells now being drilled, completed and equipped for approximately US$5 million.”
Production next year of about 68,000 boe/d—primarily liquids—is expected to be split equally between Canada and the Eagle Ford, totalling 68,000 boe/d.