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.
For 2017, Baytex Energy is focusing ~ 70% of its budgeted E&D spending on the Eagle Ford Shale Play. The Calgary-based company reports they expect the development window in the region is in excess of 10 years at the current pace.
First Quarter 2017: Eagle Ford
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.
Improved Performance and Efficiency
The following chart shows Baytex' increased performance and efficiency over the years. Improvements in drilling and completion design have increased 30-day IP rates by approximately 105% since Q4/2011 with 180-day cumulative recovery increasing 63% over the same time period. Drilling times have decreased by 63% since Q4/2011 resulting in reduced completed well costs.