Baytex Energy Earnings Report
Baytex Energy reports strong first quarter thanks to their Eagle Ford operations.
Related: Baytex Energy to Focus on Eagle Ford in 2016
During a first quarter earnings call last week, Baytex Energy announced they have done well in the middle of the current challenges brought on by this low oil price environment.
Baytex focused its Q1 operations on their Eagle Ford operations, spending 96% of its exploration and development budget in the South Texas region. Our operating results in the Eagle Ford were strong during the quarter with production up 2% over Q4/2015 and well costs continuing to decline.
“James Bowzer, President and CEO, commented: “To generate the highest netback and rate of return, we focused our capital expenditures on the Eagle Ford. (...) Importantly, we continue to direct the vast majority of our exploration and development dollars to the Eagle Ford which generates the highest rates return and the highest netbacks from our portfolio.”
Eagle Ford highlights include:
- Production averaging 41,067 boe/d (77% liquids), a 2% increase from Q4/2015
- Capital expenditures totaled $76.8 million, 96% of total E&D budget
- Approximately six drilling rigs and one frac crew working
- Drilling of 44 (12.5 net) wells and commenced production from 34 (10.2 net) wells. Of the 34 wells that commenced production during the first quarter, 19 wells have been producing for more than 30 days and have established an average 30-day initial production rate of approximately 1,300 boe/d.
- Achieved an approximate 32% reduction in well costs with wells now being drilled, completed and equipped for approximately US$5.6 million, compared to US$8.2 million in 2014.
- As of March 31, 2016, there were 36 (10.7 net) wells waiting on completion
Read more at Baytex Energy.com