By Adriano Marchese
Kiwetinohk Energy Corp. said Wednesday that it will drill five additional wells in northwestern Alberta this year, which will increase oil output while driving down costs.
Thanks to netbacks from strong commodity prices, the Canadian company said it has approved a capital drill program acceleration for 2022 of between 65 million Canadian dollars (US$50.7 million) and C$70 million. This will be used to drill and complete five additional wells at its Simonette-area property in the second half of the year which it expects will add about 2,000 barrels of oil equivalent a day.
Kiwetinohk said it now expects average production guidance to increase to between 15,000 and 17,000 barrels a day, which is an increase of about 14% from mid-point to mid-point of its new and previous guidance ranges.
As a result, it said it expects accelerating significant free cash flow generation and debt repayment beginning early next year. It also said that the added oil output will allow it to fill its processing facilities at Fox Creek more rapidly, which are currently operating at less than half of available capacity.
“Benefiting from strong netbacks in this commodity price environment, we are investing to increase production and fill our wholly-owned facilities which we expect to reduce per-barrel operating costs,” Chief Executive Pat Carlson said.
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Write to Adriano Marchese at [email protected]
Credit: www.marketwatch.com /