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Tuesday, March 7, 2017

PDC Energy Defers Utica Shale Drilling in 2017

From a PDC Energy press release:
The Company has accelerated its drilling in the Delaware Basin by adding a third drilling rig late in February, instead of the fourth quarter, as was previously planned. As a result, the number of planned spuds, expected turn-in-lines and associated midstream capital expenditures have all increased from its original budget. Additionally, given recent service cost increases in the Delaware Basin, the Company is increasing its previously disclosed projected well costs by approximately ten percent in the basin. The Company continues to place a high priority on executing its HBP strategy in the Delaware and maintains the flexibility to adjust its 2017 capital program if needed.

By balancing the current priorities, the Company has elected to manage its total projected 2017 level of capital investment by slightly adjusting its Wattenberg drilling and completion schedule and deferring Utica drilling in 2017 while it considers various strategic options with the Utica asset. The full-year capital investment is now expected to be at the top-end of the Company's previously announced range of $725 million to $775 million. Full-year production guidance is unchanged at 30 to 33 MMBoe as the incremental turn-in-lines will be late in the year with limited contribution to 2017 volumes.
View the whole release by clicking here.

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