Kelt Exploration cuts 2020 capex 36%, minimal Q2 activity expected

Kelt Exploration Ltd., Calgary, has cut its 2020 capital expenditure budget by $80 million, or 36%, to $145 million from its previously guided $225 million. The revised program begins immediately with minimal activity in this year’s second quarter.

Production forecast for 2020 has been cut 12% to reflect the delayed start-up of new wells, resulting in an expected production average of 34,000-36,000 boe/d compared to previous forecast of 38,500-41,000 boe/d. The revised 2020 production forecast would represent an increase of 13-20% from average production of 29,961 boe/d in 2019.

Specifically, the company will defer the following projects:

• Drilling of an exploratory well at Oak/Flatrock north east of Fort St. John, British Columbia;
• Completions of seven development wells at Oak/Flatrock;
• Construction of pipeline tie-ins, gas compression and an oil battery at Oak/Flatrock;
• Drilling of a well at Wembley/Pipestone north of Grande Prairie, Alberta;
• Completion of a well at Wembley/Pipestone;
• Construction of pipeline tie-ins at Wembley/Pipestone; and
• Drilling and completions of a five well pad at Fireweed north west of Fort St. John, British Columbia.