Well Cost | Quarterly / Earnings Reports | Second Quarter (2Q) Update | Drilling Activity

Bellatrix to Resume Drilling in Q3; Makes Slight Cut to 2018 Budget

Share Print Bookmark    |    Friday,August 03,2018

Bellatrix reported its Q2 2018 results.

Highlights:

Drilling to Resume in Q3

Bellatrix plans to resume drilling activity in mid-August and to use one rig for its second half 2018 capital program. Bellatrix currently  plans to drill five gross operated Spirit River wells and one gross operated Cardium well in the second half of 2018.

Bellatrix plans to fund its second half 2018 capital budget through adjusted funds flow while reducing the need for additional debt or bank line utilization through the end of 2018.  The 2018 capital program will remain flexible and focused on optimizing forecast return on invested capital through focused development of the Spirit River liquids rich natural gas play and higher liquids weighted opportunities in the Cardium play.

Budget Decrease

Solid operational momentum from the first half 2018 drilling program has carried forward into the third quarter as a result of strong well performance and operational execution.  Bellatrix is announcing today, a decrease in its full year 2018 net capital expenditure guidance with no associated reduction in average production guidance given strong results year to date.  Our Spirit River wells continue to outperform budget expectations, resulting in lower sustaining capital requirements for the remainder of 2018.

As a result,  Bellatrix is reducing its full year net capital expenditures to a range of $50 to $60 million, down approximately 8% from the prior guidance range of $55 to $65 million.