CALGARY, ALBERTA–(Marketwired – Jan. 6, 2017) – Seven Generations Energy Ltd. (TSX:VII) invested less than $1 billion in its 2016 capital program, compared to the company’s forecast of $1.05 to $1.1 billion. This reduced capital investment resulted in lower than forecast fourth quarter production, which is now expected to result in 2016 average production of about 117,500 barrels of oil equivalent per day (boe/d), compared to 2016 production guidance of 120,000 to 125,000 boe/d. Corporate liquids yields for 2016 remain at the high end of the 55 to 60 percent guidance range.
“Production in 2016 was 95 percent higher than in 2015. This growth was about 85 percent organic, and about 15 percent from our Montney asset acquisition. We remain confident in the long-term growth potential of our Kakwa River Project and we confirm our 2017 capital program, which is expected to increase production by more than 50 percent this year,” said Marty Proctor, 7G’s President & Chief Operating Officer.
As published on November 2, 2016, 7G expects to produce 180,000 to 190,000 boe/d in 2017 with capital investments of $1.5 billion to $1.6 billion.
“Annual production was impacted by completion delays and the temporary shutting in of producing wells adjacent to completion operations. As a result of the delays, we invested about 7 percent less capital than expected in 2016, which resulted in production that was about 4 percent lower than forecast,” said Glen Nevokshonoff, Senior Vice President, Operations. “We continue to be encouraged by improving well performance, and later this month we plan to publish details on well production type curves, operational performance and corporate initiatives in our CEO’s annual business strategy update letter.”
Seven Generations plans to issue a formal report on its year-end 2016 financial and operating results on March 8, 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.
Further information on Seven Generations is available on the company’s website: www.7genergy.com.