Kelt increases 2021 production guidance, spending

    May 25, 2021
    Kelt Exploration Ltd. has increased its 2021 capital spending program on optimism that oil and gas prices will continue to remain strong leading into 2022.

    Kelt Exploration Ltd. has increased its 2021 capital spending program on optimism that oil and gas prices will continue to remain strong leading into 2022. The company expects to spend $150 million in 2021, up 25% from its previous forecast of $120 million.

    The Canadian company will bring forward certain expenditures previously planned for 2022 in order to take advantage of current commodity prices and expects higher production and funds from operations in 2021.

    Production in 2021 is now expected to average 21,000 boe/d, up 11% from its previous forecast of 19,000 boe/d. Adjusted funds from operations for 2021 is expected at $118 million, a 10% increase from the previous forecast of $107 million.

    The following wells are expected to be put on production during third-quarter 2021:

    • Wembley (sfc 14-34) 02/13-32-074-09W6 Montney D3 - drilled and completed.
    • Wembley (sfc 14-34) 00/13-10-075-09W6 Montney D3 - drilled and completed.
    • Spirit River (sfc 8-27) 08-25 Upper Charlie Lake - drilled and completed.
    • Spirit River (sfc 8-27) 01-25 Lower Charlie Lake - drilled and completed.
    • Pouce Coupe (sfc 1-32) 04/13-32-077-11W6 Montney D1 - drilled (DUC).
    • Pouce Coupe (sfc 1-32) 05/13-32-077-11W6 Montney D2 - drilled (DUC).
    • Pouce Coupe (sfc 1-32) 02/14-32-077-11W6 Montney D2 - drilled (DUC).

    The following wells are expected to be put on production during fourth-quarter 2021:

    • Oak (sfc 5-31) 00/13-05-087-18W6 Upper Montney - drilled and completed.
    • Oak (sfc 5-31) 00/16-06-087-18W6 Middle Montney - drilled and completed.
    • Oak (sfc 5-33) 00/01-09-087-18W6 Upper Montney - drilled (DUC).
    • Oak (sfc 5-33) 00/04-10-087-18W6 Upper Montney - drilled (DUC).
    • Oak (sfc 6-35) 00/12-12-087-18W6 Upper Montney - drilled (DUC).
    • Oak (sfc 6-35) 00/08-11-087-18W6 Upper Montney - drilled (DUC).
    • Oak (sfc 13-12) 00/14-24-087-18W6 Upper Montney - drilled (DUC).
    • Oak (sfc 13-12) 00/16-23-087-18W6 Upper Montney - drilled (DUC).
    • Oak (sfc 13-12) 00/08-16-087-18W6 Upper Montney - drilled (DUC).
    • Oak (sfc 13-12) 02/08-16-087-18W6 Upper Montney - drilled (DUC).

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