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Baytex Continues Duvernay Delineation in Q1; Production Up +45% YOY

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Baytex Energy Corp. reported its Q1 2019 results - below are the highlights (all amounts are in Canadian dollars unless otherwise noted).

Q1 Summary

- Well Activity: Drilled 87 net wells

• Viking: 68 net wells completed

• Eagle Ford: 8.9 net wells completed
  

- Rigs: 5 total rigs running

- Q1 D&C Spending: $154 million

- Q1 Production: Total equivalent production averaged 101 MBOEPD - up +45% from Q1 2018

• Baytex has tightening its 2019 production guidance range to 95,000 to 97,000 boe/d (previously 93,000 to 97,000 boe/d)

East Duvernay Shale Light Oil

We continue to prudently advance the delineation of the East Duvernay Shale, an early stage, high operating netback light oil resource play where we have amassed over 450 sections of land.

During Q1/2019, we drilled two of four planned land retention and appraisal wells. The wells drilled to date have confirmed that the net reservoir thickness and geological characteristics remain consistent through the southern extent of our Pembina acreage. Completion activities are scheduled to commence in Q2/2019 to confirm well productivities and the de-risking of the majority of our 250 sections of land in the Pembina area.

Eagle Ford and Viking Light Oil

Eagle Ford

Production in the Eagle Ford averaged 41,097 boe/d (78% liquids) during Q1/2019, as compared to 38,437 boe/d in Q4/2018. This represents the highest quarterly production rate ever achieved in the field and reflects continued strong well performance and an active first quarter completion program.

We commenced production from 36 (8.9 net) wells during the first quarter, representing approximately one-third of our planned 2019 activity. The wells brought on-stream generated an average 30-day initial production rate of approximately 1,600 boe/d per well.

Viking

During Q1/2019, production from the Viking averaged 23,387 boe/d, as compared to 23,784 boe/d in Q4/2018. We maintained a steady pace of development in Q1/2019 with five drilling rigs and 1.5 frac crews executing our program, resulting in 79 (67.8 net) wells.

We continue to experience positive results from our extended reach horizontal drilling program, which now represents 85% of our Viking activity. Our capital program includes the seasonal slowdown in Q2/2019 and we remain on track to drill approximately 250 net wells this year.

Heavy Oil

Our heavy oil assets at Peace River and Lloydminster produced a combined 29,341 boe/d during the first quarter, as compared to 28,290 boe/d in Q4/2018. As commodity prices and operating netbacks improved during the first quarter, we reinitiated field activity, including the completion of three previously deferred wells at Peace River. In addition, we continued the ramp-up of our Kerrobert thermal expansion project achieving a peak production rate of 2,500 bbl/d. We have also expanded our acreage position at Peace River, acquiring an additional 26 sections of prospective land. We expect to drill our first exploratory multilateral well on these lands in 2019.

With WCS differentials returning to historical levels, the returns associated with continued development of our heavy oil assets are now competitive or superior to those of our other plays, allowing potential increased capital allocation to those assets in the second half of 2019.