Advantage Oil & Gas Ltd. ("Advantage" or the "Corporation") is happy to announce that its Board of administrators ("Board") has approved a 2017 capital budget and development arrange estimates for 2018 and 2019. Advantage's 2017 through 2019 investment can continue with the profitable and property growth of our trade leading low value Montney gas provide. This development are going to be supported by the Corporation's future drilling inventory of one,100 dry gas and liquids wealthy Montney locations at ice mass which is able to stay the first focus of development through consecutive decade. in addition, the strategic growth of Advantage's 100% closely-held ice mass burning bush process capability has been upsized from 350 mmcf/d to four hundred mmcf/d (66,670 boe/d) with construction planned to begin within the half of 2017. this can offer optionality for accelerated growth at ice mass and operational flexibility to method a broader spectrum of gas and liquids compositions from Advantage's Montney lands set at Heaven, city district and Progress within the bigger ice mass space.
Advantage's 2017 capital budget includes AN investment of $205 million targeted to extend annual production by Revolutionary Organization 17 November to 236 mmcfe/d (39,333 boe/d). Annual 2017 funds from operations is calculable to grow twenty seventh on a per share basis to $210 million supported a mean daily gas value of AECO Cdn $2.95/mcf ($2.80/GJ) and also the Corporation's current hedging positions. The upsized ice mass plant growth has borderline impact on the Corporation's 2017 cost budget owing to Advantage's proved experience in value economical facilities engineering style, lower construction prices and fewer needed wells to grow and maintain production compared to earlier estimates. As a result, the Corporation's increasing income is predicted to cut back the overall debt to trailing income to zero.8 times at year-end 2017.
The Corporation's 2017 through 2019 development arrange is targeted to extend 2016 annual production by fifty six (52% on a per share basis) to 316 mmcfe/d (52,670 boe/d) in 2019 or 16 PF on a mean annual per share basis. supported a mean AECO daily gas value of $2.95/mcf ($2.80/GJ) over the 2017 through 2019 amount, income is predicted to grow by seventy eight (74% on a per share basis) or 2 hundredth on a mean annual per share basis. Surplus money is anticipated to cut back calculable year-end 2016 total debt from about $165 million to $55 million at year-end 2019, leading to a complete debt to trailing income magnitude relation of zero.2 times. At a mean AECO Cdn daily gas value of $3.50/mcf ($3.30/GJ), Advantage's robust money margins might generate $230 million of accumulative surplus money over the 2017 through 2019 amount. Total capital expenditures over the event arrange amount is calculable at $625 million and includes the drilling of eighty three Montney wells.
The Corporation believes that the 2017 through 2019 amount would force Canadian gas producers to become additional competitive within the North America gas market and Advantage's continued target capital discipline, value efficiencies, profit and monetary strength can stay key success factors in achieving robust investment returns.
2017 Budget & steering
Glacier outperformance reduces total capital expenditures. important technological enhancements in drilling and completion efficiencies, shallower production declines, lower well prices and lower total company money prices have reduced the Corporation's capital needs. The Corporation's 2017 capital program is calculable at about $205 million with $83 million directed to facilities and infrastructure. This includes the ice mass burning bush growth wherever $71 million of the overall $90 million is anticipated to be spent in calendar 2017. extra facilities expenditures of $12 million embody investments to support current growth and price generation like growth of the sphere gas gathering system, a water supply system and connections into different sales pipelines. a complete of twenty one wells ar planned to be trained in 2017 with twenty four new and standing wells completed to support 2018 growth. The 2017 capital and budget includes thought for potential will increase in trade and restrictive prices.
Well production sort curves all told Montney layers at ice mass are enlarged. The higher and Lower Montney average well production sort curves are enlarged to a Management calculable initial thirty day average well production rate ("IP30") of seven.5 mmcf/d with a 2P calculable final recovery ("EUR") per well of seven.5 Bcfe (previous IP30 of seven.2 mmcf/d and twoP EUR of seven.2 Bcfe). For designing functions, in aras wherever prime mark well results are anticipated, a mean production well sort curve with AN IP30 of nine mmcf/d and a 2P EUR of nine Bcfe has been utilised. within the Middle Montney, the common well production sort curve estimates are enlarged to AN IP30 of five mmcf/d with a 2P EUR of five Bcfe (previous IP30 of four.5 mmcf/d and 2P EUR of four.5 Bcfe). The drill, complete, equip and fixing ("DCET") well prices ar projected to be $4.8 million for all higher, Middle and Lower Montney wells with a mean lateral length of one,800 meters and twenty five frac stages. The DCET value for wells with longer laterals and enlarged frac stages ar adjusted consequently within the budget.
Advantage's total company money prices ar calculable to be $0.63/mcfe for 2017. Advantage anticipates its trade leading low value structure can continue owing to the Corporation's proved operational experience and our 100% closely-held ice mass burning bush that provides extremely economical gas process prices. The ice mass burning bush growth to four hundred mmcf/d includes extra process units additional to the present burning bush infrastructure making economies of scale with the utilization of common utility systems, maintenance procedures and instrumentality fungibility.
Firm Transportation Service Secured. Advantage has secured firm service sales gas transportation on TransCanada Pipeline Limited's ("TCPL") star Gas gear mechanism (Alberta) for 100% of its planned production targets from 2017 through 2019.
Advantage's hedging positions scale back income volatility. The Corporation believes gas costs can stay volatile and continues to produce draw back income protection through future hedge positions. Advantage has qualified forty fifth of its 2017 forecast gas production at AECO Cdn $3.19/mcf, twenty second of calculable 2018 gas production at AECO Cdn $3.02/mcf and eighteen of calculable Q1 2019 gas production at AECO Cdn $3.00/mcf.
125 mmcf/d of completed standing well productivity is presently offered to support Advantage's 2017 production target. The one hundred twenty five mmcf/d of average initial month productivity ("IP30") relies on nine presently completed standing wells which is able to be utilised to support its target of 236 mmcfe/d in 2017. extra wells are going to be trained within the fourth quarter of 2016 to support production levels within the half of 2017 and early 2018. Advantage's development cycles ar planned specified the temporal order of cost to initial income relies on massive well pads (> ten wells). This commonly suggests that our drilling programs ar completed about eight to twelve months earlier and well completions ar undertaken specified a sufficient range of completed wells stay in inventory to produce operational flexibility and optionality for increasing growth.
Advantage's 100% closely-held ice mass burning bush has current process capability to support its 2017 production target and extra capability within the future. The ice mass burning bush growth to four hundred mmcf/d is targeted to start construction throughout the half of 2017 with completion expected by the second quarter of 2018. Total liquids handling capability are going to be enlarged to six,800 bbls/d of gas and ("C3+") liquids. Post growth, Advantage can have extra raw gas process capability of roughly a hundred and twenty mmcf/d to eighty mmcf/d in 2018 and 2019 severally, to produce operational flexibility, accelerate growth or accommodate third party process. The expanded ice mass burning bush capability to four hundred mmcf/d also will match our existing sales gas pipeline lateral capability of four hundred mmcf/d that connects to TCPL.
Beyond 2017
Comments concerning 2018 and 2019 ar Management estimates and don't seem to be Board approved budgets. extra details ar enclosed in our updated Management presentation offered on our web site.
Based on AECO Cdn gas costs of $2.95/mcf ($2.80/GJ) for 2018 and 2019 and also the Corporation's current hedging positions, Advantage's development arrange includes a targeted 15 August 1945 production increase in 2018 to AN annual average production rate of 272 mmcfe/d (45,330 boe/d) and a 16 PF increase in 2019 annual average production to 316 mmcfe/d (52,670 boe/d). income per share is calculable to grow twelve-tone system to $1.27 in 2018 and twenty second to $1.55 in 2019. Capital expenditures of $210 million ar calculable to be needed in 2018 and $210 million in 2019 with a complete of sixty two wells to be trained at ice mass over the 2 years. The calculable year-end total debt to trailing income is calculable to be zero.6 times and zero.2 times at year-end two018 and 2019, severally.
The 2017 through 2019 development arrange is predicted to get fifty six production growth or fifty two on a per share basis and seventy four income growth per share over this era. the overall capital needed throughout this era is calculable to be $625 million and is absolutely funded through income.
Future Development at Heaven, city district and Progress. throughout the fourth quarter of 2016, 3 initial analysis wells were brought on-production in our Heaven property. These 3 Heaven wells are going to be made to continue sick load fluid and should be shut-in sporadically to assemble extra analysis knowledge. These initial wells were trained in 2014 and 2015 into 2 of the four Montney layers gift at Heaven. 2 of the wells were trained into the higher Montney and one well trained within the initial layer of the center Montney. The wells confirmed the presence of liquids within the higher Montney, compared to dry gas within the higher Montney at ice mass, similarly as liquids within the initial layer of the center Montney. this is often in keeping with Advantage's interpretation supported geotechnical work undertaken in 2012 that indicated that every layer of the Montney stack at Heaven might contain liquids. within the 3 initial Heaven analysis wells, the C3+ liquid content of up to forty five bbls/mmcf is calculable supported a shallow cut liquids recovery method with a condensation quality that spans the condensation to grease window within the higher and initial Middle Montney layers. gas production rates of up to three.5 mmcf/d ar almost like the initial Middle Montney delineation wells at ice mass. we tend to ar inspired with these initial findings and to optimize the productivity of future wells, frac style changes and lowering the pipeline operational pressure within the Heaven gathering system are going to be undertaken. extra geotechnical analysis and delineation drilling is needed to work out the extent and composition of the gas and liquids content all told four potential Montney development layers at Heaven.
At Wembley, trade drilling activity has extended to the northeast of the Pipestone Montney property and is commencing to encroach inside many kilometres of Advantage's lands. Similarly, at our Progress land block, many trade wells that indicate liquids wealthy production are trained on-trend. Advantage has enclosed plans to drill AN initial analysis well at city district and Progress inside consecutive eighteen to twenty four months.
Continuing Forward With monetary Discipline and Operational Flexibility
The exceptional quality of the Corporation's ice mass Montney plus, AN trade leading low value structure and 100% possession of our facilities incontestible robust investment returns at low trade goods costs within the last 3 years of our development. Advantage believes that continued with a disciplined approach can generate future enticing returns for our shareholders and provides upper side potential as a additional favourable gas value surroundings might evolve in North America as demand growth continues. we glance forward to news our continued progress and achievements as we tend to develop our prime quality Montney resource.
For additional info, please visit: http://www.advantageog.com
For additional info on this project, please visit our comes OGP info
Advantage's 2017 capital budget includes AN investment of $205 million targeted to extend annual production by Revolutionary Organization 17 November to 236 mmcfe/d (39,333 boe/d). Annual 2017 funds from operations is calculable to grow twenty seventh on a per share basis to $210 million supported a mean daily gas value of AECO Cdn $2.95/mcf ($2.80/GJ) and also the Corporation's current hedging positions. The upsized ice mass plant growth has borderline impact on the Corporation's 2017 cost budget owing to Advantage's proved experience in value economical facilities engineering style, lower construction prices and fewer needed wells to grow and maintain production compared to earlier estimates. As a result, the Corporation's increasing income is predicted to cut back the overall debt to trailing income to zero.8 times at year-end 2017.
The Corporation's 2017 through 2019 development arrange is targeted to extend 2016 annual production by fifty six (52% on a per share basis) to 316 mmcfe/d (52,670 boe/d) in 2019 or 16 PF on a mean annual per share basis. supported a mean AECO daily gas value of $2.95/mcf ($2.80/GJ) over the 2017 through 2019 amount, income is predicted to grow by seventy eight (74% on a per share basis) or 2 hundredth on a mean annual per share basis. Surplus money is anticipated to cut back calculable year-end 2016 total debt from about $165 million to $55 million at year-end 2019, leading to a complete debt to trailing income magnitude relation of zero.2 times. At a mean AECO Cdn daily gas value of $3.50/mcf ($3.30/GJ), Advantage's robust money margins might generate $230 million of accumulative surplus money over the 2017 through 2019 amount. Total capital expenditures over the event arrange amount is calculable at $625 million and includes the drilling of eighty three Montney wells.
The Corporation believes that the 2017 through 2019 amount would force Canadian gas producers to become additional competitive within the North America gas market and Advantage's continued target capital discipline, value efficiencies, profit and monetary strength can stay key success factors in achieving robust investment returns.
2017 Budget & steering
Glacier outperformance reduces total capital expenditures. important technological enhancements in drilling and completion efficiencies, shallower production declines, lower well prices and lower total company money prices have reduced the Corporation's capital needs. The Corporation's 2017 capital program is calculable at about $205 million with $83 million directed to facilities and infrastructure. This includes the ice mass burning bush growth wherever $71 million of the overall $90 million is anticipated to be spent in calendar 2017. extra facilities expenditures of $12 million embody investments to support current growth and price generation like growth of the sphere gas gathering system, a water supply system and connections into different sales pipelines. a complete of twenty one wells ar planned to be trained in 2017 with twenty four new and standing wells completed to support 2018 growth. The 2017 capital and budget includes thought for potential will increase in trade and restrictive prices.
Well production sort curves all told Montney layers at ice mass are enlarged. The higher and Lower Montney average well production sort curves are enlarged to a Management calculable initial thirty day average well production rate ("IP30") of seven.5 mmcf/d with a 2P calculable final recovery ("EUR") per well of seven.5 Bcfe (previous IP30 of seven.2 mmcf/d and twoP EUR of seven.2 Bcfe). For designing functions, in aras wherever prime mark well results are anticipated, a mean production well sort curve with AN IP30 of nine mmcf/d and a 2P EUR of nine Bcfe has been utilised. within the Middle Montney, the common well production sort curve estimates are enlarged to AN IP30 of five mmcf/d with a 2P EUR of five Bcfe (previous IP30 of four.5 mmcf/d and 2P EUR of four.5 Bcfe). The drill, complete, equip and fixing ("DCET") well prices ar projected to be $4.8 million for all higher, Middle and Lower Montney wells with a mean lateral length of one,800 meters and twenty five frac stages. The DCET value for wells with longer laterals and enlarged frac stages ar adjusted consequently within the budget.
Advantage's total company money prices ar calculable to be $0.63/mcfe for 2017. Advantage anticipates its trade leading low value structure can continue owing to the Corporation's proved operational experience and our 100% closely-held ice mass burning bush that provides extremely economical gas process prices. The ice mass burning bush growth to four hundred mmcf/d includes extra process units additional to the present burning bush infrastructure making economies of scale with the utilization of common utility systems, maintenance procedures and instrumentality fungibility.
Firm Transportation Service Secured. Advantage has secured firm service sales gas transportation on TransCanada Pipeline Limited's ("TCPL") star Gas gear mechanism (Alberta) for 100% of its planned production targets from 2017 through 2019.
Advantage's hedging positions scale back income volatility. The Corporation believes gas costs can stay volatile and continues to produce draw back income protection through future hedge positions. Advantage has qualified forty fifth of its 2017 forecast gas production at AECO Cdn $3.19/mcf, twenty second of calculable 2018 gas production at AECO Cdn $3.02/mcf and eighteen of calculable Q1 2019 gas production at AECO Cdn $3.00/mcf.
125 mmcf/d of completed standing well productivity is presently offered to support Advantage's 2017 production target. The one hundred twenty five mmcf/d of average initial month productivity ("IP30") relies on nine presently completed standing wells which is able to be utilised to support its target of 236 mmcfe/d in 2017. extra wells are going to be trained within the fourth quarter of 2016 to support production levels within the half of 2017 and early 2018. Advantage's development cycles ar planned specified the temporal order of cost to initial income relies on massive well pads (> ten wells). This commonly suggests that our drilling programs ar completed about eight to twelve months earlier and well completions ar undertaken specified a sufficient range of completed wells stay in inventory to produce operational flexibility and optionality for increasing growth.
Advantage's 100% closely-held ice mass burning bush has current process capability to support its 2017 production target and extra capability within the future. The ice mass burning bush growth to four hundred mmcf/d is targeted to start construction throughout the half of 2017 with completion expected by the second quarter of 2018. Total liquids handling capability are going to be enlarged to six,800 bbls/d of gas and ("C3+") liquids. Post growth, Advantage can have extra raw gas process capability of roughly a hundred and twenty mmcf/d to eighty mmcf/d in 2018 and 2019 severally, to produce operational flexibility, accelerate growth or accommodate third party process. The expanded ice mass burning bush capability to four hundred mmcf/d also will match our existing sales gas pipeline lateral capability of four hundred mmcf/d that connects to TCPL.
Beyond 2017
Comments concerning 2018 and 2019 ar Management estimates and don't seem to be Board approved budgets. extra details ar enclosed in our updated Management presentation offered on our web site.
Based on AECO Cdn gas costs of $2.95/mcf ($2.80/GJ) for 2018 and 2019 and also the Corporation's current hedging positions, Advantage's development arrange includes a targeted 15 August 1945 production increase in 2018 to AN annual average production rate of 272 mmcfe/d (45,330 boe/d) and a 16 PF increase in 2019 annual average production to 316 mmcfe/d (52,670 boe/d). income per share is calculable to grow twelve-tone system to $1.27 in 2018 and twenty second to $1.55 in 2019. Capital expenditures of $210 million ar calculable to be needed in 2018 and $210 million in 2019 with a complete of sixty two wells to be trained at ice mass over the 2 years. The calculable year-end total debt to trailing income is calculable to be zero.6 times and zero.2 times at year-end two018 and 2019, severally.
The 2017 through 2019 development arrange is predicted to get fifty six production growth or fifty two on a per share basis and seventy four income growth per share over this era. the overall capital needed throughout this era is calculable to be $625 million and is absolutely funded through income.
Future Development at Heaven, city district and Progress. throughout the fourth quarter of 2016, 3 initial analysis wells were brought on-production in our Heaven property. These 3 Heaven wells are going to be made to continue sick load fluid and should be shut-in sporadically to assemble extra analysis knowledge. These initial wells were trained in 2014 and 2015 into 2 of the four Montney layers gift at Heaven. 2 of the wells were trained into the higher Montney and one well trained within the initial layer of the center Montney. The wells confirmed the presence of liquids within the higher Montney, compared to dry gas within the higher Montney at ice mass, similarly as liquids within the initial layer of the center Montney. this is often in keeping with Advantage's interpretation supported geotechnical work undertaken in 2012 that indicated that every layer of the Montney stack at Heaven might contain liquids. within the 3 initial Heaven analysis wells, the C3+ liquid content of up to forty five bbls/mmcf is calculable supported a shallow cut liquids recovery method with a condensation quality that spans the condensation to grease window within the higher and initial Middle Montney layers. gas production rates of up to three.5 mmcf/d ar almost like the initial Middle Montney delineation wells at ice mass. we tend to ar inspired with these initial findings and to optimize the productivity of future wells, frac style changes and lowering the pipeline operational pressure within the Heaven gathering system are going to be undertaken. extra geotechnical analysis and delineation drilling is needed to work out the extent and composition of the gas and liquids content all told four potential Montney development layers at Heaven.
At Wembley, trade drilling activity has extended to the northeast of the Pipestone Montney property and is commencing to encroach inside many kilometres of Advantage's lands. Similarly, at our Progress land block, many trade wells that indicate liquids wealthy production are trained on-trend. Advantage has enclosed plans to drill AN initial analysis well at city district and Progress inside consecutive eighteen to twenty four months.
Continuing Forward With monetary Discipline and Operational Flexibility
The exceptional quality of the Corporation's ice mass Montney plus, AN trade leading low value structure and 100% possession of our facilities incontestible robust investment returns at low trade goods costs within the last 3 years of our development. Advantage believes that continued with a disciplined approach can generate future enticing returns for our shareholders and provides upper side potential as a additional favourable gas value surroundings might evolve in North America as demand growth continues. we glance forward to news our continued progress and achievements as we tend to develop our prime quality Montney resource.
For additional info, please visit: http://www.advantageog.com
For additional info on this project, please visit our comes OGP info
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nice good article