Baytex Energy Corp. (BTE.TO) has approved a 2013 capital budget
of $520 million for exploration and development activities. It said
this capital budget includes $430 million related to conventional
oil and gas operations, which is designed to generate an average
production rate of 56,000 to 58,000 boe/d, as compared to current
guidance range of 53,500 to 54,500 boe/d for 2012. An additional
$90 million of capital will be directed toward two thermal enhanced
oil recovery projects, as it positions for growth in 2014 and
"This budget continues our focus on oil weighted production
growth while also providing funding for projects which will allow
us to moderate our long term corporate decline rates, supporting
our ability to continue to execute the growth and income business
model. Based on the mid-point of the production guidance ranges for
2012 and 2013, our 2013 plan reflects production growth rates of 8%
for oil and natural gas liquids volumes and 6% for oil equivalent
volumes. Our 2013 production mix is forecast to be approximately
89% liquids (75% heavy oil and 14% light oil and natural gas
liquids) and 11% natural gas, based on a 6:1 natural gas-to-oil
2013 Capital Budget Highlights:
"Approximately one-half of our 2013 capital budget will be
invested in our conventional heavy oil operations at Peace River
and Lloydminster. Our 2013 capital budget includes the drilling of
37 horizontal multi-lateral wells in our Peace River region. Our
multi-lateral drilling program at Peace River continues to be one
of the highest rate of return projects in the oil and gas industry.
In our Lloydminster region, we plan to drill 108 wells,
approximately evenly split between vertical wells and horizontal
wells. This area is characterized by stacked pay which has led to
successful exploitation of multiple horizons.
"We have allocated approximately 17% of our 2013 capital budget
toward two thermal enhanced oil recovery projects. Once developed,
thermal recovery projects provide a source of long life, low
decline production, which will enhance our ability to continue our
growth and income model over the long term. These two projects are
expected to contribute to our growth profile in 2014 and
"At Cliffdale in our Peace River region, our 2013 capital budget
includes funding for the drilling and facility construction of a
second module of commercial thermal development. The second thermal
module is planned as a 15-well cyclic steam stimulation project
with development expected to commence in the first quarter of 2013.
Based on our numerical reservoir modeling, we anticipate a peak
annual rate of approximately 2,000 bbl/d, which we would expect to
occur in approximately year four of the development.
"At Cold Lake in our Lloydminster region, we will commence
construction of our steam-assisted gravity drainage pilot project.
Expenditures will include lease and facility construction and the
drilling of one SAGD well pair. Upon success of the pilot project,
construction of a commercial 5,000 bbl/d SAGD project would
commence in 2014 with initial production in 2016.
"The balance of our capital program will be directed primarily
towards light oil development, with the single largest project
being the Bakken/Three Forks in North Dakota. Our 2013 development
plan in North Dakota represents approximately 15% of our 2013
capital budget, and will include the drilling of approximately 22
gross (9.3 net) wells.
"Our 2013 capital budget includes the drilling of approximately
228 net wells, of which 187 will target crude oil, three will
target natural gas and 38 will be stratigraphic and service wells.
Our 2013 stratigraphic and service well program will support
multi-lateral drilling programs in future years, further delineate
our lands at Cliffdale for thermal development and enhance our
operating cost efficiency by expanding our water disposal capacity
near our core producing assets."