Razor Energy Releases 2019 Budget

- January 22nd, 2019

The company’s board of directors approved a capital budget of C$13.5 million for 2019.

Alberta-based Razor Energy (TSXV: RZE) has released its 2019 corporate budget and guidance. The company’s board of directors approved a capital budget of C$13.5 million for 2019, allowing Razor to maintain production levels while continuing to pay a sustainable dividend.

As quoted from the press release:

2019 BUDGET

  • Capital expenditures of C$13.5 million are expected to be allocated as follows:
  • Reactivations, recompletions and optimizations C$4.6 million
  • Facilities and pipelines C$5.2 million
  • Other (oilfield IT and other) C$1.5 million
  • End of life expenditures C$2.2 million

Reactivations, recompletions and optimizations include activities in both the Swan Hills and Kaybob areas. Also included are certain production management activities of existing waterfloods which will complement current production levels while enhancing long term recoveries of oil in place.
Facilities and pipelines consist primarily of projects intended to enhance the realized price for our production. Razor plans to develop a blending facility in Kaybob as well as a condensate stabilizationfacility in Swan Hills.

The company continues to address operating costs through heightened field efficiencies and capital investment. In 2019, Razor will complete the oilfield information system upgrade program, which has already provided immediate enhancements impacting operational awareness, preventative maintenance, personnel safety, and environmental protection through actionable and predictive analytics.

End of life expenditures will address both the Alberta Energy Regulator’s requirements under the Inactive Well Compliance Program and other discretionary spending within the asset portfolio.

2019 GUIDANCE
Recent volatility in both West Texas Intermediate (“WTI”) and Canadian crude oil differentials has resulted in a lower capital spending budget and production profile for 2019. The capital budget will be reviewed continuously by management and the Board and adjusted in response to changes in light oil price assumptions, project economics, and other market opportunities. Razor remains steadfast in its conviction to maintain its financial advantage

Click here to read the full announcement 

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