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Berens Energy Ltd. Announces Revised 2006 Capital Plans and Provides 2006 Production Update
Berens Energy Ltd. Announces Revised 2006 Capital Plans and Provides 2006 Production Update.
About this update from Argenta Silver Corp
[{"type":"text","content":"\n\n\n\n\nBEN - TSX\n\nCALGARY, May 24 /CNW/ - Berens Energy Ltd. (\"Berens\" or the \"Company\")\ntoday announced a reduction in its 2006 capital expenditure plan to \n$51 million from the previously announced level of $61 million.\nIn light of lower than expected natural gas prices in the first five\nmonths of 2006 and higher industry service costs, Berens has elected to reduce\nits capital expenditure plans for the remainder of the year to maintain a\nsound balance sheet and defer spending to bring on new production when natural\ngas prices are expected to be stronger. The capital plan for the balance of\n2006 will focus on drilling in the prospective Pembina and Lanfine areas with\ndeferred spending on land and seismic, and drilling in the Deep Basin. Reduced\ndrilling in the revised budget, together with production delays in the first\nquarter and production results below expectation on four new wells and four\ncompleted wells associated with the Berland acquisition combine to reduce\nexpected average 2006 production to an estimated 3,800 boepd with exit\nproduction projected at approximately 4,450 boepd.\nThe second quarter Lanfine drilling program of seven wells commenced in\nmid-May with the first two wells being cased pending completion. Post-break up\ndrilling activity in Pembina has also commenced with one well (0.5 net)\ndrilled and cased and one (0.5 net) drilling with an ongoing drilling program\nplanned for the balance of the year. For the remainder of 2006 Berens plans to\ndrill 12 (six net) Pembina wells, an additional seven Lanfine wells at 100% in\nOctober/November and one (0.25 net) Deep Basin well in third quarter. Capital\nis also allocated for completion and tie-in of five (2.5 net) and 10 (4.6 net)\nwells in Pembina and the Deep Basin respectively. The 10 Pembina and Deep\nBasin wells pending tie in have an estimated net production capability of over\n300 boepd. In addition, 100 boepd of production pending tie in has been tested\nat Marten Hills that will come on stream in January, 2007 when the cold\nweather returns. The 2006 capital program is expected to be funded by cash\nflows and the Company's operating bank facility.\n\"For a company of our size we continue to have an enviable land base and\na wealth of drilling opportunities. However, it is prudent at this time to be\nconservative and defer certai...