Production in early December 2012 has reached approximately 51,000 boepd (based on field estimates), up 6,000 boepd since early November 2012 as we continue to execute on our 2012 capital plan.
Production growth primarily came from our Bakken and Cardium business units, which are our most active areas. Since the end of the third quarter, we have drilled 67 net wells and placed 76 net wells on production. This includes 26 net wells drilled and 33 net wells placed on production in the Bakken business unit, 28 net wells drilled and 35 net wells placed on production in the Cardium business unit, 12 net wells drilled and 8 net wells placed on production in the Conventional business unit, and 1 net well drilled in our new play areas. For the remainder of December, we plan to bring on production 21 net wells, 8 in each of the Bakken and the Cardium business units and 5 in the Conventional business unit. We recently completed the Brazeau facility in the Cardium and tied-in a portion of the planned wells to this facility, which added approximately 1,200 boepd of production. We expect the completion of our tie-in program and optimization of this facility will add an additional 2,000 boepd of production prior to year-end. The results of these activities, together with the natural declines attributable to our production base, will put us on pace to achieve our 2012 exit rate production guidance of 52,000 to 56,000 boepd,
The recently announced acceleration of our 2013 capital program is underway and our continuous drilling program, which currently consists of 11 drilling rigs operating, 6 in the Cardium, 2 in the Bakken, 1 in Conventional, and 2 in our Swan Hills resource play should provide a steady inventory of new wells to bring on-stream in early 2013. New additions to our facility infrastructure and pipeline networks should also alleviate some seasonal production losses during spring break-up due to shut-in production and road bans.
In order to provide greater cash flow security, we are expanding our hedging program and are targeting to increase the net hedged production for 2013 from 12,000 bopd to 18,000 bopd. This is an increase to our past practice of hedging approximately 25% of our net production. The following table provides our current hedge position:
PetroBakken Energy Ltd. is an oil and gas exploration and production company combining light oil Bakken and Cardium resource plays with conventional light oil assets, delivering industry leading operating netbacks, strong cash flows and production growth. PetroBakken is applying leading edge technology to a multi-year inventory of Bakken and Cardium light oil development locations, along with a significant inventory of opportunities in the Horn River and Montney gas resource plays in northeast BC. Our strategy is to deliver accretive production and reserves growth, along with an attractive dividend yield.
BOEs. Natural gas volumes have been converted to barrels of oil equivalent (“boe”). Six thousand cubic feet (“Mcf”) of natural gas is equal to one barrel of oil equivalent based on an energy equivalency conversion method primarily attributable at the burner tip and does not represent a value equivalency at the wellhead. Boes may be misleading, especially if used in isolation.
Forward Looking Statements. Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to future results from operations, future production rates and, proposed exploration and development activities (including the number of wells to be drilled, completed and put on production). The forward-looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the success of future drilling, completion, recompletion and development activities, the performance of new and existing wells, prevailing commodity prices and economic conditions, the availability and cost of labour and services, timing of pipeline and facilities construction, access to third party facilities and weather and access to drilling locations. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and exchange rate fluctuations and general economic conditions. Certain of these risks are set out in more detail in our Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. Except as may be required by applicable securities laws, PetroBakken assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.