Baytex Energy Corp.

Eagle Ford Company

Baytex entered the Eagle Ford in Texas in 2014 with the acquisition of Aurora Oil and Gas Limited. Development largely targets the Lower Eagle Ford formation at 40-acre and 60-acre spacing in the condensate/gas window of the play.

Additional advancements have been made to delineate the multi-zone development potential of our Sugarkane acreage. We have initiated “stack and frac” pilots which target up to three zones in the Eagle Ford formation in addition to the overlying Austin Chalk.

Average well cost is approximately US$6.0 million, with IP30 rates of 1000-1200 boe/d with annual capital efficiency is approximately C$13,000/boe/d.

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Baytex Eagle Ford Shale Quarterly Commentary

May 2017

Baytex Energy announced strong first quarter results for its Eagle Ford assets, including increased performance and a break-even point at $30 per barrel of WTI. 

Throughout the quarter, Baytex saw strong growth and reduced costs for its Eagle Ford assets. Quarterly highlights include:

  • Production increased 8% to 36,000 barrels of oil equivalent per day
  • Increased pace of development to five drilling rigs and two completion crews 
  • Integrated the Peace River acquisition which closed on January 20, 2017
  • Participated in the drilling of 36 (8.4 net) wells and commenced production from 33 (9.4 net) wells
  • Break even price in the region is at $30 a barrel
  • Record low well costs of approximatelyUS$4.5 million, down 20% from Q1/2016.

March 2016

The Eagle Ford generates the highest cash netbacks in the company's portfolio and has enhanced the quality of our production and reserves base. In 2015, 86% of our development activity was focused in the Eagle Ford, which contributed to strong reserves growth in our U.S. assets. The execution of our capital program has yielded impressive results as we advance the multi-zone development potential of our Eagle Ford acreage,” commented James Bowzer, President and Chief Executive Officer.

Highlights include:

  • Consistent pace of development, averaging six drilling rigs and two frac crews
  • Production averaged 40,284 boe/d (78% oil and NGL) during Q4/2015, as compared to 38,941 boe/d in Q3/2015 and 39,548 boe/d in Q2/2015.
  • Capital expenditures totaled $132 million during Q4/2015
  • Participated in the drilling of 42 (12.6 net) wells in the Eagle Ford and commenced production from 61 (16.6 net) wells
  • 36 (10.1 net) wells waiting on completion at the end of year

2016 Capital Budget Highlights

For the full-year, approximately 80% to 90% of our planned capital expenditures will be directed to our Eagle Ford operations, which at current commodity prices, represents the highest individual well economics and highest netbacks in our portfolio. The balance of the spending will be in Canada. Our 2016 capital budget will be heavily weighted to drilling and completion activities (approximately 83%) with the balance for facilities and pipelines (approximately 15%) and land and seismic (approximately 2%).

In the Eagle Ford, we expect to have four to six rigs running throughout the year. We will continue to advance the multi-zone potential of our Sugarkane acreage with individual pads targeting up to three zones in the Eagle Ford formation in addition to the overlying Austin Chalk formation. We expect to bring approximately 35 to 40 net wells on production in 2016.