UPDATE: Legacy Oil + Gas Inc. Up More Than 2% As Announces 2013 Budget and Public Guidance
Legacy Oil + Gas Inc. (LEG.TO) is up more than 2% Wednesday after it announced its capital and operating budget and associated public guidance for 2013.
A statement said: "Continued success in the company's dominant position in the Spearfish play in southern Manitoba and North Dakota and in its conventional assets in the Williston Basin has added significantly to its drilling inventory. These areas, along with Turner Valley, will play key roles in 2013 organic activity and growth."
Legacy expects to spend $290 million in 2013 focused on light oil development with the majority of capital (81%) directed to drilling, completions and tie-ins. This capital spending is 12% lower than 2011 capital spending and 6% lower than 2012 forecast capital spending as a result of continued improvements in capital efficiencies. The capital spending is distributed as follows: drilling, completions and tieâins - $234 million; facilities - $35 million; land and seismic - $13 million and other - $8 million. The majority of the capital spending will be allocated to the company's major plays: Spearfish (Manitoba and North Dakota) - $80 million (28%), Alameda/Steelman - $52 million (18%), Turner Valley - $45 million (16%), Star Valley - $31 million (11%) and Frys/Antler - $28 million (10%).
Legacy is planning to drill 128 gross (109.4 net) wells in 2013, targeting high quality light oil. In addition to drilling, the company is planning capital expenditures on pilot waterfloods at Frys/Antler and Pierson, as well as expansions of the successful pilot waterfloods at Taylorton and Heward. No capital has been budgeted for acquisitions, although the Company continues to evaluate new opportunities, both within and beyond its core areas.
Legacy anticipates a 2013 average production rate of 17,900 Boe per day (89% weighted to light oil and NGL) representing growth of 10% over 2012 expected average production. The company has incorporated a significant reduction in second quarter volumes to account for the possibility of an extended spring break up in its Williston Basin core area. Legacy expects to exit 2013 at approximately 19,700 Boe per day, representing 10% growth from 2012 exit rate guidance.
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