Razor Energy Corp. announced that its Board of Directors has approved an acquisition, development and operations budget of $38.4 million for fiscal 2018.
Razor Energy Corp. (TSXV:RZE) announced that its Board of Directors has approved an acquisition, development and operations budget of C$38.4 million for 2018.
As quoted in the press release:
The development drilling program includes eight deviated wells targeting the oil prone Montney formation within the Company’s recently consolidated prolific Kaybob South Triassic A Pool. Reactivations, workovers and stimulations include activities in both the Swan Hills and Kaybob areas. Also included are certain injection management activities of existing waterfloods which will complement current production levels while enhancing long term recoveries of oil in place.
Razor continues to address operating costs through heightened field efficiencies and capital investment. In 2018, capital investment in the operating function will include the design, purchase, and installation of natural gas fired power generation units in Swan Hills. In addition, a significant upgrade to the Swan Hills oilfield information system will provide considerable near and long-term enhancements. This project will positively impact operational awareness, preventative maintenance, personnel safety, and environmental protection through actionable and predictive analytics.
Land and other acquisitions include the recently completed Kaybob consolidation for an aggregate purchase price of $4.9 million. End of life expenditures will address both the Alberta Energy Regulator’s requirements under its 2018 Inactive Well Compliance Program and other discretionary spending within the asset portfolio.
Given the strength in light oil prices and Razor’s ability to grow production through a mix of development drilling and high frequency / low capital intensive projects, Razor expects to take a reasonably aggressive yet flexible approach to its 2018 budget. The capital budget will be reviewed continuously by management and the Board and adjusted in response to changes in light oil price assumptions and project economics. Razor remains steadfast in its conviction to maintain its financial advantage and build a top-tier junior oil and gas company.