CALGARY, A.B. — ARC Resources Ltd. announced its 2018 capital spending program which shows the company plans to spend a total of $690 million next year, most of which will be spent developing its Montney assets in Northeast B.C.
ARC said it expects 2018 annual average production to be in the range of 130,000 to 134,000 barrels of oil equivalent per day, with crude oil and liquids production in the range of 37,500 to 40,500 barrels per day and natural gas production in the range of 555 to 565 million cubic feet per day.
Of the $690 million announced by ARC Resources in next year’s capital budget, a total of $565 million will be spent on developing the Sunrise, Dawson, Parkland, Tower, and Attachie regions in Northeast B.C.
“We are pleased to announce our 2018 capital investment plan of $690 million,” said ARC’s President and CEO Myron Stadnyk. “Capital investment in 2018 will be directed at development activities to keep our facilities operating at capacity, and at strategic infrastructure in Sunrise as we advance this high-rate-of-return project towards completion in 2019. Building on a successful year of appraising the Lower Montney and our liquids-rich Attachie asset, we will continue to progress with our development of these resources. ARC’s demonstrated approach to prudently managing our capital programs and our disciplined pace of development will allow us to protect our strong financial position, retain our excellent capital and operating efficiencies, and execute on our strategy of risk-managed value creation.”
ARC plans to invest approximately $190 million at Sunrise in 2018, of which approximately $85 million will be directed at construction of Phase II of the Sunrise gas processing facility’s expansion. Also in the works is the progression of its Dawson Phase IV gas processing and liquids-handling facility, expected to come on-stream in 2020.
The company is planning to drill 64 wells, including 16 at Tower and Ante Creek and 46 in the Sunrise, Dawson, Parkland, and Attachie area.