CALGARY, A.B. — Canbriam Energy says it plans to invest between $50 and $60 million in the first half of the year, in addition to buying all of Suncor Energy’s holdings in Northeast B.C.
Canbriam says its agreement with Suncor will see it get all of Suncor’s Northeast B.C. mineral land holdings and $52 million in exchange for Suncor acquiring a 37 percent stake in Canbriam. The transaction is expected to close sometime in the first quarter of the year, subject to regulatory approval.
“Our prudent approach to development supports a 2018 capital budget that is expected to be funded entirely with cash flow due to challenging natural gas price levels,” said Paul Myers, Canbriam’s President & Chief Executive Officer. “The additional lands will complement our existing Montney land position and infrastructure to support the scalable, profitable development of liquids-rich natural gas.”
In its 2018 capital budget, Canbriam is hoping to reach full capacity at its Altares Montney asset, based on nameplate capacity of 40,000 barrels of oil equivalent per day including liquids. The company’s full-year production expectations of between 37,000 and 39,000 barrels of oil equivalent per day reflect routine downtime as existing wells are temporarily taken offline to accommodate the completion and tie-in of new wells.
Canbriam also said it has deferred construction of Phase 3 of its Altares Processing Facility, which once complete is expected to add an incremental 120 million cubic feet per day of processing capacity.