Baytex Energy Corp., Calgary, resumed production in June of some previously shut-in crude oil volumes and has revised production guidance for 2020 to 78,000-82,000 boe/d from the May expectation of 70,000-74,000 boe/d.
Some 25,000 boe/d of production (80% heavy oil) had been shut-in and remained off-line for April and May. As operating netbacks improved in June, the company began plans to bring 80% of these volumes back on-line. For the second half of 2020, 5,000 boe/d of heavy oil production is expected to remain shut-in.
Capital spending for the year is still expected to be $260-290 million—a 50% reduction from its original plan of $500-575 million. With the revised program, drilling operations in Canada were suspended and a moderate pace of activity in the Eagle Ford is expected.
Production in this year’s second quarter is expected to be 72,000-73,000 boe/d. If operating netbacks change, the company can shut-in additional volumes or restart wells in short order, it said.