CALGARY, ALBERTA–(Marketwired – July 5, 2017) – Seven Generations Energy Ltd.’s (TSX:VII) second quarter production averaged approximately 164,000 boe/d, while June’s production is estimated to be approximately 179,000 boe/d, based on field estimates. 7G’s production growth is on track to meet 2017 production guidance of 180,000 to 190,000 boe/d, which would constitute an increase of more than 50 percent from 2016.
“We ended the first half with record production volumes, demonstrating the underlying strength and long-term potential of our liquids-rich Montney assets. First half performance is consistent with our expectations, and our strong activity levels in the first half will generate even more production growth in the second half of 2017,” said Marty Proctor, 7G’s President & Chief Executive Officer.
Annual production is on track despite an unplanned third-party facility outage for four days in May. This disruption was mitigated by diverting a portion of production to 7G’s other facilities.
“We continue to execute our profitable growth plan. We had a very busy first half of 2017, operating an average of 13 rigs and three hydraulic fracturing spreads. We tied-in 23 wells in the second quarter and we are continuing to execute our robust drilling program for the remainder of the year,” said Glen Nevokshonoff, 7G’s Chief Operating Officer.
Capital investment in the second quarter was about $550 million. In the first half of 2017, capital investment was about $910 million, which is about 60 percent of planned 2017 capital investment of $1.5 billion to $1.6 billion and in line with 7G’s 2017 plan.
Operating and transportation expenses in the second quarter are estimated to be about $1.50 per boe higher than during the first quarter of 2017 due to additional water handling costs, road restrictions during spring break up and higher than normal use of temporary equipment for new wells that were awaiting tie-in to permanent 7G facilities. Many of those permanent production facilities are now coming on-stream, which is reducing temporary equipment use. As permanent well tie-ins are completed in the second half of 2017 and water disposal wells begin operating in early 2018, 7G expects operating costs to trend lower towards historical averages.
Readers are advised that all quarterly figures are preliminary field accruals and are subject to review. Additional second quarter operational information, along with the company’s financial performance, is scheduled to be published on August 3, 2017.
Seven Generations Energy
Seven Generations is a low-cost, high-growth Canadian natural gas developer generating long-life value from its liquids-rich Kakwa River Project, located about 100 kilometres south of its operations headquarters in Grande Prairie, Alberta. 7G’s corporate headquarters are in Calgary and its shares trade on the TSX under the symbol VII.