Bellatrix Exploration Ltd. (NYSE: BXE, TO: BXE) revised its 2015 capital budget, the company said Dec. 22.
The budget was lowered to CA$300 million from CA$400 million, due to declining oil prices. It will focus on the Bellatrix O'Chiese Nees-Ohpawganu'ck deep-cut gas plant at Alder Flats and drilling liquids-rich natural gas at Spirit River (Notikewin/Falher), where production can be processed through the new plant. The Cardium drilling program will be tempered, Bellatrix noted.
About 35% of the budget will go toward facilities including the gas plant, which is on schedule and budget for a July 2015 startup. It will process up to 110 million cubic feet per day (MMcf/d). Bellatrix will be able to grow its net production to about 65,000 barrels of oil equivalent per day (boe/d), the company added. Another 4% of the budget is allocated to land and seismic, and the remaining 61% is allocated to drilling.
Along with reducing the budget, the company reduced the 2015 average production guidance range. The new range is between to 47,000 and 48,000 boe/d (70% natural gas, 30% liquids), Bellatrix noted.
Calgary, Alberta-based Bellatrix Exploration Ltd. operates in western Canada’s Sedimentary Basin.
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