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Insignia Energy Provides 2011 Capital Expenditure Update, Announces First Half 2012 Capital Budget and Guidance

Insignia Energy Ltd. (ISN.TO), which closed Thursday near a year low 98 cents, provided a 2011 capital expenditure update and announced its 2012 first half capital budget and guidance. Insignia said it expects its total capital expenditures for 2011 to be approximately $27 million, which is consistent with previous guidance. In the first half of 2012, the Board of Directors of Insignia have approved a capital budget of $22 million which is intended to be directed to the drilling, completion and tie-in of two (2.0 net) horizontal Cardium oil wells at Pembina, two (2.0 net) Mannville liquids rich natural gas wells at Caroline and one (0.5 net) horizontal Doig well at Pouce Coupe. Also, capital activity will include the completion and tie-in of wells being drilled in 2011, such as, two (1.0 net) horizontal Montney/Doig wells at Pouce Coupe and one (1.0 net) Mannville liquids rich natural gas well at Caroline.

Insignia anticipates exiting the first half of 2012 with production in the range of 3,800 to 4,000 boe/d and net debt of approximately $20 million. The Company also expects its first half cash flow to be approximately $13.5 million ($27 million ($0.46 per share) annualized) based on an average WTI price of $90 USD/bbl and an average AECO price of $3.25/mcf.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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