Home Energy News Saguaro Resources will drill 28 wells in Northeast B.C.

Saguaro Resources will drill 28 wells in Northeast B.C.

A Saguaro Resources facility.

CALGARY, A.B. – Saguaro Resources has announced they plan to ramp up capital spending in 2017 and 2018 in Northeast B.C.

On Thursday, Saguaro Resources announced they had closed the placement of $50 million of secured notes, and recently expanded its syndicated revolving credit facility from $65 million to $105 million.

“With this funding we plan to ramp up our capital spend in 2017, 2018 and beyond. Our high free condensate yield and low drilling and completion costs provide very attractive economics at current strip prices. Saguaro’s goal is to more than double our 2016 exit production rate of 12,000 boe/d by the end of 2018” said Stacy Knull President & CEO.

In 2017, their capital program will include drilling 28 wells (24 of which will be brought on-stream) and the expansion of its processing facility to 100 MMcf/d.

Saguaro had estimated proved reserves of 84 MMboe and estimated proved plus probable reserves of 270 MMboe at year end 2016. This represents a 140% increase in proved reserves and a 150% increase in proved plus probable reserves since the end of 2015.