Drilling & Completions | Top Story | Capital Markets | Capital Expenditure | Drilling Activity | Capex Increase | Capital Expenditure - 2021

Kelt Ups 2021 Capex by 25%, Production by 11%; Credits Oil Price Gains

Share Print Bookmark    |    Tuesday,May 25,2021

Kelt Exploration Ltd. has updated its guidance for 2021.

Kelt’s board of directors has approved an increase to the Company’s capital expenditure program for 2021.

• Kelt expects to spend $150.0 million in 2021, up 25% from its previous forecast of $120.0 million.

• Production in 2021 is now forecasted to average 21,000 BOE per day, up 11% from its previous forecast of 19,000 BOE per day.

The following table summarizes the changes to 2021 guidance since the Company’s original forecast was prepared in November 2020:

 The Company has elected to bring forward certain expenditures previously planned for 2022 in order to take advantage of current commodity prices. In doing so, Kelt expects higher production and funds from operations in 2021. In addition, the Company will put itself in a position to show continued growth in production in 2022 by accelerating capital expenditure plans.

Kelt will continue to maintain its strong financial position. At December 31, 2021, the Company expects to have debt, net of working capital, of $11.0 million or only 0.1 times adjusted funds from operations.

Q1 Ops Update / Well Results

Kelt has a significant number of wells that it plans to bring on production during the remainder of 2021. Below is a summary of the wells and their current status.

The following wells are expected to be put on production during the third quarter of 2021:

(a) Wembley (sfc 14-34) 02/13-32-074-09W6 Montney D3 – drilled and completed;
(b) Wembley (sfc 14-34) 00/13-10-075-09W6 Montney D3 – drilled and completed;
(c) Spirit River (sfc 8-27) 08-25 Upper Charlie Lake – drilled and completed;
(d) Spirit River (sfc 8-27) 01-25 Lower Charlie Lake – drilled and completed;
(e) Pouce Coupe (sfc 1-32) 04/13-32-077-11W6 Montney D1 – drilled (DUC);
(f) Pouce Coupe (sfc 1-32) 05/13-32-077-11W6 Montney D2 – drilled (DUC); and
(g) Pouce Coupe (sfc 1-32) 02/14-32-077-11W6 Montney D2 – drilled (DUC).

The following wells are expected to be put on production during the fourth quarter of 2021:

(a) Oak (sfc 5-31) 00/13-05-087-18W6 Upper Montney – drilled and completed;
(b) Oak (sfc 5-31) 00/16-06-087-18W6 Middle Montney – drilled and completed;
(c) Oak (sfc 5-33) 00/01-09-087-18W6 Upper Montney – drilled (DUC);
(d) Oak (sfc 5-33) 00/04-10-087-18W6 Upper Montney – drilled (DUC);
(e) Oak (sfc 6-35) 00/12-12-087-18W6 Upper Montney – drilled (DUC);
(f) Oak (sfc 6-35) 00/08-11-087-18W6 Upper Montney – drilled (DUC);
(g) Oak (sfc 13-12) 00/14-24-087-18W6 Upper Montney – drilled (DUC);
(h) Oak (sfc 13-12) 00/16-23-087-18W6 Upper Montney – drilled (DUC);
(i) Oak (sfc 13-12) 00/08-16-087-18W6 Upper Montney – drilled (DUC); and
(j) Oak (sfc 13-12) 02/08-16-087-18W6 Upper Montney – drilled (DUC).