Dundee Energy Ltd., Toronto, said capital spending of $4.5 million in the quarter ended June 30 included $2 million on advancing its 3D land seismic program in southern Ontario.
Dundee, Ontario’s largest oil and gas operator, said the program will be critical to the corporation in identifying its drill candidates in later years.
The company also purchased a land rig for $3.1 million that will augment offshore drilling and completion barge operation in Lake Erie because the equipment and personnel will be interchangeable. The land rig may also be leased to third parties.
Dundee said its production averaged 10.1 MMcfd of gas and 799 b/d of oil and liquids in the quarter, 4% lower than in the same quarter of 2011.
The remaining 2012 work program, budgeted at $7.1 million, will focus on its onshore oil projects and will include a number of workover initiatives to optimize oil production from existing fields.
Dundee continues to assess potential drill opportunities in an ongoing effort to replenish reserves. It plans to shoot 60 line-km of 2D seismic to identify nearshore structures for future drilling to add reserves and production.
