Connacher Oil and Gas crawls ahead
Connacher Oil and Gas released it's second quarter update.Production was 2% higher than Q1 2013.It's true that Connacher is making some improvements that will make the second half of the year better.After all Connacher has seen it's production improve from 11,000 barrels per day in 2012 to 13,700 barrels per day in Q2 2014.This is close to a 25% increase.But this quarter saw mostly changes in process and little increase in output.But it did revamp it's capital expenditures program.They planned on spending about $70 to $80 million for the year and now it will be $113 million;$50 million on the 9 new infill wells at Pod One and there will also be a further $63 million spent on their new site called Algar.
The second quarter
Connacher is steaming 2 of the new 9 infill wells at Pod One.They should be onstream in the the next quarter.Initial production should be about 300 to 500 barrels each.This should bring Q3 production to about 14,300 to 14,500 barrels per day.With the other of the 7 remaining infill wells coming onstream in Q4.Efficient steaming and casing could bring production in at close to 15,000 barrels per day for Q4.Early production from the new infill wells will likely be lower than average.However all 9 wells have been tied-in so this will not slow down production at Pad 101.
The other SAGD plant
All of this production is coming from Pod One but it's bigger plant will be at Algar.It's approved production is 30,000 barrels per day which is bigger than that of Pod One.Connacher says that $63 million will be spent on Algar in the second half of 2014.Connacher also states that that Algar will be onstream in 2015.Hiopefully this means early 2015.Here is where production will increase dramatically.Once the second site comes onstream total production for Connacher will exceed 22,000 barrels per day and capital expenditures will start to fall.Free funds flow will likely hit $20 to $25 million in 2014 and $45 to $50 million in 2015.Not bad considering that funds flow was only $12 million in Q1 2014.Use Blogdaleupsome for advice on oil and gas stocks
The second quarter
Connacher is steaming 2 of the new 9 infill wells at Pod One.They should be onstream in the the next quarter.Initial production should be about 300 to 500 barrels each.This should bring Q3 production to about 14,300 to 14,500 barrels per day.With the other of the 7 remaining infill wells coming onstream in Q4.Efficient steaming and casing could bring production in at close to 15,000 barrels per day for Q4.Early production from the new infill wells will likely be lower than average.However all 9 wells have been tied-in so this will not slow down production at Pad 101.
The other SAGD plant
All of this production is coming from Pod One but it's bigger plant will be at Algar.It's approved production is 30,000 barrels per day which is bigger than that of Pod One.Connacher says that $63 million will be spent on Algar in the second half of 2014.Connacher also states that that Algar will be onstream in 2015.Hiopefully this means early 2015.Here is where production will increase dramatically.Once the second site comes onstream total production for Connacher will exceed 22,000 barrels per day and capital expenditures will start to fall.Free funds flow will likely hit $20 to $25 million in 2014 and $45 to $50 million in 2015.Not bad considering that funds flow was only $12 million in Q1 2014.Use Blogdaleupsome for advice on oil and gas stocks
Comments
Post a Comment