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Advantage Announces Strategic Production Curtailment, Anticipates Further Capital Reduction
Advantage Announces Strategic Production Curtailment, Anticipates Further Capital Reduction ...
About this update from Advantage Energy Ltd
[{"type":"text","content":"\n\n\n\n Advantage Announces Strategic Production Curtailment, Anticipates Further Capital Reduction\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prngen2{\nPADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: TOP; TEXT-ALIGN: LEFT; BORDER-TOP:black 0pt; BORDER-RIGHT:black 0pt; BORDER-BOTTOM:black 0pt; BORDER-LEFT:black 0pt\n}\n.prnml4{\nMARGIN-TOP:0em; MARGIN-RIGHT:0em; MARGIN-BOTTOM:0em; MARGIN-LEFT:0.33em !IMPORTANT\n}\n.prnbcc{\nBORDER-COLLAPSE: COLLAPSE\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n\n (TSX: AAV)\n \n\n\n\n\n CALGARY, AB\n \n\n ,\n \n\n Oct. 8, 2024\n \n\n /CNW/ - Advantage Energy Ltd. (\"Advantage\" or the \"Corporation\") announces it has begun strategic production curtailments of up to 130 mmcf/d of dry gas in response to unusually low\n \n Alberta\n \n natural gas prices. Curtailments began during September and are planned to continue during the fourth quarter until such time as pricing recovers.\n \n\n Consistent with our strategic priorities of maximizing free cash flow\n \n (a)\n \n and reducing net debt\n \n (a)\n \n , production curtailment levels are being determined on a continuous basis to eliminate variable cash costs and defer development capital. The curtailments are primarily dry gas at Glacier, which is amongst the lowest-cost natural gas assets in\n \n North America\n \n , and will not materially impact Advantage's cash flow. Liquids production, which is currently exceeding expectations, will be unaffected. Production during the third quarter of 2024 was approximately 74,000 boe/d (368 mmcf/d natural gas, 8,100 bbls/d crude oil, and 4,600 bbls/d NGLs), including the impact of curtailments which averaged over 5,000 boe/d.\n \n\n With lower depletion resulting from curtailments, Advantage's 2024 capital program has been reduced further and is expected to approach the bottom of our guidance range (\n \n $260 million\n \n to\n \n $290 million\n \n ), further boosting free cash flow\n \n (a)\n \n . Depending on the duration of gas price volatility and associated curtailments, 2024 production is expect...