CALGARY, A.B. – Advantage Oil & Gas announced in its 2017 capital budget that it will be planning to increase activity in the Montney basin in the next few years. Advantage also released development plan estimates for 2018 and 2019.
Advantage says that through 2019 will continue to grow their Montney natural gas supply, and plan to spend $625 million drilling 83 Montney wells. In addition, the is increasing their Glacier gas plant processing capacity from 350 mmcf/d to 400 mmcf/d with construction planned to start in the second half of 2017. The expansion will provide an option for accelerated growth at Glacier, and operational flexibility to process a broader spectrum of gas and liquids compositions from Advantage’s Montney lands at Valhalla, Wembley and Progress in the greater Glacier area.
Advantage’s 2017 capital budget includes an investment of $205 million targeted to increase annual production by 17% to 236 mmcfe/d (39,333 boe/d). Annual 2017 funds from operations is estimated to grow 27% on a per share basis to $210 million based on an average daily natural gas price of AECO Cdn $2.95/mcf ($2.80/GJ) and the Corporation’s current hedging positions. operating budget includes consideration for potential increases in industry and regulatory costs.