ARC Energy investing $625M in production
CALGARY: ARC Energy Trust plans to invest $625 million in oil and liquids rich gas production from Canada’s western provinces in 2011.
The Calgary-based conventional oil and gas developer said it’s increasing its budget for oil and liquids rich natural gas production to 70% in response to continuing strength in oil prices versus weakness in natural gas prices. Production will increase by 12% to 93,000 boe per day.
About $350 million is targeted at maintaining current production capacity while the remainder is being spent on growth projects. ARC Energy said it will focus on opportunities at Pembina and Ante Creek in Alberta, southeast Saskatchewan and Parkland in BC, plus a “measured, paced development” of the Montney gas fields in northeast BC.
About $420 million of the budget will be directed towards oil and liquids rich gas and the drilling of approximately 144 operated wells. Approximately $205 million will be allocated to gas with the drilling of 22 operated wells and the expansion of facility projects. Eighty-six per cent of the 166 wells will be horizontals.