Business
Kelt increases planned 2015 capital expenditures in British Columbia, provides operations update and announces $78.8 million equity financings
Stock Symbol "KEL" – TSX CALGARY , June 15, 2015 /CNW/ - Kelt Exploration Ltd. (...
About this update from Kelt Exploration Ltd.
[{"type":"text","content":"\n\nStock Symbol \"KEL\" – TSX\n\n\n\nCALGARY, June 15, 2015 /CNW/ - Kelt Exploration Ltd. (\"Kelt\" or the \"Company\") has expanded its capital expenditure budget to $497 million for 2015, up $40 million from $457 million. Excluding the corporate acquisition that was completed on April 16, 2015, forecasted capital expenditures have been increased by 23% from $150.0 million to $185.0 million. The increased spending is expected to result in the drilling of 18 gross (15.7 net) wells during the year, with the largest increase in the Inga/Fireweed area in British Columbia.\n\nThe Company has increased its forecasted spending on facilities, equipment and pipelines by 27% from $30.0 million to $38.0 million. As a result of these expenditures, Kelt expects to have its oil and liquids production from all of its core producing areas pipeline connected by the first quarter of 2016. By eliminating trucking costs and long wait times, corporate production and transportation expenses per BOE could improve by approximately 7% to 9%. \n\nThe Company believes that the current energy business environment, including lower oil and gas prices compared to 2014, continues to present acquisition opportunities to companies that are well financed. As a result, Kelt has increased its land and property acquisition budget by 16% from $32.0 million to $37.0 million. Early in the second quarter, Kelt completed a property acquisition in its core area at Karr whereby the Company acquired a 3.2% ownership interest in the Karr Gas Plant and approximately 110 BOE per day of production for a purchase price of $10.0 million. Securing ownership priority in this gas plant is instrumental in maintaining cash flow stability in the area, as the Company produces significant amounts of oil with associated gas production at Karr. In addition, Pembina Pipeline Corp. is expected to have their Karr oil pipeline lateral constructed and in service in early 2016 which will transport crude oil from the Karr area and thereby benefiting Kelt through the elimination of trucking costs.\n\nRecent well performance in both the Triassic Doig and Montney formations in the Company's Inga-Fireweed British Columbia core area, where wells have been completed using slick-water fractures, has shown very encouraging results to date with production significantly outperforming wells previou...