CALGARY, A.B. – An announcement by Birchcliff Energy Ltd. shared financial and operational results for the third quarter of 2018, a strategic Montney land acquisition in Pouce Coupe and its preliminary plans for 2019.
Highlights from the third quarter include;
- Production average of 79,331 boe/d, a 22% increase from 65,276 boe/d in the third quarter of 2017.
- Adjusted funds flow of $75.4 million increased from $64.4 million in the third quarter of 2017.
- Net income to common shareholders of $6.7 million as compared to the net loss to common shareholders of $121.7 million in the third quarter of 2017.
- During the quarter, Birchcliff completed and brought on production a total of 9 wells, consisting of 6 Montney horizontal oil wells in Gordondale and 3 Montney/Doig horizontal natural gas wells in Pouce Coupe.
- Expansion of Birchcliff’s 100% owned and operated natural gas processing plant in Pouce Coupe was brought on-stream during the quarter, increasing the total processing capacity of the plant. to 340 MMcf/d.
Birchcliff entered into a purchase and sale agreement to acquire 18 gross contiguous sections of Montney land located between the Corporation’s operating Pouce Coupe and Gordondale properties, as well as non-Montney lands and other assets, for total cash consideration of $39 million.
Birchcliff is in the process of finalizing its strategy and capital spending plans for 2019, focusing on generating free funds flow. Depending on market sentiment, economic conditions, commodity prices and other factors, preliminary F&D capital spending is currently expected to be approximately $210 million, which is anticipated to generate annual average production of approximately 76,000 to 78,000 boe/d during 2019.
“We had a solid third quarter in 2018 with average production of 79,331 boe/d, which represents a 22% increase from the third quarter of 2017 and was well ahead of our internal budget,” commented Jeff Tonken, President and Chief Executive Officer of Birchcliff. “Subsequent to the end of the quarter, we entered into an agreement to acquire 18 gross (15.1 net) sections of Montney land contiguous with our existing Pouce Coupe and Gordondale properties, which is expected to close in early January 2019. In addition to consolidating our land position in the area, we believe that these lands are located on a significant liquids-rich trend in Pouce Coupe. During 2019, we anticipate that we will generate significant free funds flow which may be used to reduce debt, pursue additional growth, increase our common share dividend and/or to fund share buybacks.”
For information on Birchcliff’s financial and operational results for the third quarter of 2018, “Third Quarter 2018 Financial and Operational Results” CLICK HERE