Baytex Energy to Spend 70% Capex on Eagle Ford in 2017
Baytex Energy announces that 70% of its 2017 capital expenditures will be directed to its Eagle Ford operations.
Related: Baytex Remains Focused on the Eagle Ford
Just weeks after reporting a strong third quarter, Calgary-based, Baytex Energy has announced their 2017 capital budget of $300 to $350 million, which is heavily weighted to drilling and completion activities.
Baytex Energy’s Eagle Ford operations will see about 70% of the capital program. The company plans to have four to five drilling rigs and two completion crews working the area. This is an increase from two to three rigs in the third quarter. The company’s costs in the Eagle Ford continue have dropped and wells are now being ceing drilled, completed and equipped for approximately $5 million.
“We have designed our 2017 budget to be flexible should we continue to experience a volatile commodity price environment.”
Baytex also announced that will succeed James Bowzer as Chief Executive Officer in May 2017. Mr. Bowzer has seved as the President of Baytex since 2012.
“I am thrilled to be leading Baytex as we build operational momentum in 2017. I’ve had an opportunity to work first-hand with our talented teams on the quality and growth potential of our asset base. I am pleased to be inheriting a highly focused organization poised to build our core oil plays, and take on the challenges and opportunities that lie ahead.”
Other Eagle Ford highlights year-to-date include:
- Exploration and development expenditures totaled $39.6 million, as compared to $35.5 million in Q2/2016 and $81.7 million in Q1/2016.
- The pace of completions in the Eagle Ford was down approximately 21% from January-September, compared to the first nine months of 2015.
- Participated in the drilling of 100 gross (29.5 net) wells in the Eagle Ford
- Commenced production from 84 gross (24.7 net) wells, as compared to the first nine months of 2015 where we participated in the drilling of 149 gross (38.4 net) wells and commenced production from 123 gross (31.3 net) wells.
- Continue to advance completion activity in the Eagle Ford with increased frac stages and proppant usage.