Baytex Energy Reports 2016 Q3
Baytex Energy reported a strong third quarter, with their Eagle Ford operations remaining the focus of their development activity.
Related: Baytex Reduces Eagle Ford Spending
Calgary-based, Baytex Energy announced third quarter financial and operational results this week, highlighting reduced debt and significant cost reductions.
Eagle Ford Operations
Executives also announced that the company is currently running four rigs and two completion crews in the Eagle Ford and they expect this level of activity to continue into 2017.
For the third quarter, Baytex continued to reduce capital spending, focusing all development activity in the Eagle Ford for the third quarter. The company averaged 2-3 drilling rigs and 1-2 completion crews on Eagle Ford property. They participated in the drilling of 18 gross (5.7 net) wells in the Eagle Ford and commenced production from 30 gross (8.8 net) wells. 15 of these wells have been producing for more than 30 days and are averaging a production rate of approximately 1,350 boe/dIn Q3/2016.
“Our emphasis on deploying capital efficiently was evident during the third quarter as we continue to curtail our level of capital spending and focus all development activity in the Eagle Ford. In the third quarter, our exploration and development expenditure totaled $40 million as compared to $36 million in the second quarter and $82 million in the first quarter.”
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.