Canada’s Advantage Energy plans small spending increase
Canadian producer Advantage Energy said December 6 its capital expenditures in 2022 would fall in the C$170-C$200mn (US$134-US$158mn) range, a modest increase from current guidance this year in the C$140-C$150mn range.
Corporate production on the year is expected to climb about 8%, to the 52,000-55,000 barrels of oil equivalent (boe)/day, with liquids leading the way with a 25% increase, to 5,400-5,800 b/day. Adjusted funds flow is projected at C$370mn, based on average commodity prices of US$4/mn Btu for natural gas and US$70/b for oil.
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Production guidance for this year has been ‘lowered modestly,” Advantage says, to about 49,250 boe/day, to reflect the impact of unplanned firm service restrictions on TC Energy’s Nova Gas Transmission Limited system in the fourth quarter.
Sustaining capital for 2022 will reach about C$75mn and will include nine new natural gas wells at Glacier to replace a corporate decline rate of 24%. Overall, sustaining capital will be divided equally between gas-weighted and oil-weighted assets.
About C$7mn of capital spending in 2022 will be directed to Advantage Energy’s Glacier carbon capture and storage project, where Phase 1 is expected onstream early in Q2 2022.
As previously-announced, Andy Mah will retire as CEO at the end of this year and will be replaced by president and COO Michael Belenkie, who is also CEO of Entropy, Advantage Energy’s CCS subsidiary. Darren Tisdale has been named vice president, geosciences, while Geoff Keyser will assume the role of vice president, corporate development.