Crew Energy Releases Operations Update

British Columbia-focused Crew Energy (TSX:CR) has released its latest operations update which include Q4 2018 production tallies and financials for the current year.

As quoted from the press release:

The company’s C$95 to C$105 million budget is expected to approximate annual estimated funds from operations  which is designed to preserve balance sheet strength and financial flexibility.

PRODUCTION UPDATE

Strong December Production: Based on field estimates, December 2018 average production is estimated at 24,200 boe per day (70 percent natural gas) as a result of higher production rates from ultra condensate rich wells and a portion of shut-in production being restored as differentials improved through the month. Average production in Q4 2018 is estimated at 22,400 boe per day as approximately 1,300 boe per day of natural gas and 700 bbls per day of heavy oil was shut-in for the majority of the quarter due to low pricing. Annual production is estimated at 23,850 boe per day, which is within guidance of 23,500 to 24,500 boe per day.

DRILLING OPERATIONS

Focus on UCR Drilling: Crew has two drilling rigs currently working in Northeast B.C. One rig is drilling the last well on a six well pad (at the 4-21 location) directly south of our recently completed 15-20 wells in the UCR area. This rig will then be moved to drill a four well UCR pad directly north of the 15-20 location at 3-32; where lateral lengths are planned at over 3,000 metres. The second rig is drilling a lease retention well at Attachie before moving to drill an exploratory horizontal well approximately 18 kilometers northwest of Crew’s UCR area, to delineate Crew’s liquids rich play in the area. The company has continued to refine a number of variables in our drilling operations to improve efficiencies and we have seen a 35 percent reduction in costs per metre of lateral length drilled. Crew continues to trial different lateral lengths, fluid systems, drill bits and downhole assemblies in order to optimize efficiencies.

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