Baytex Energy announced strong first quarter results for its Eagle Ford assets, including increased performance and a break-even point at $30 per barrel of WTI.
Related: Cabot Getting Good Returns in the Eagle Ford
For 2017, Baytex Energy is focusing ~ 70% of its budgeted E&D spending on the Eagle Ford Shale Play. The Calgary-based company reports they expect the development window in the region is in excess of 10 years at the current pace.
First Quarter 2017: Eagle Ford
Throughout the quarter, Baytex saw strong growth and reduced costs for its Eagle Ford assets. Quarterly highlights include:
- Production increased 8% to 36,000 barrels of oil equivalent per day
- Increased pace of development to five drilling rigs and two completion crews
- Integrated the Peace River acquisition which closed on January 20, 2017
- Participated in the drilling of 36 (8.4 net) wells and commenced production from 33 (9.4 net) wells
- Break even price in the region is at $30 a barrel
- Record low well costs of approximatelyUS$4.5 million, down 20% from Q1/2016.
Our pace of development in the Eagle Ford is expected to remain stable throughout 2017 with 4-5 drilling rigs and 2 completion crews working on our lands. At this pace, we expect to bring approximately 34 net wells on production in 2017.
Improved Performance and Efficiency
The following chart shows Baytex' increased performance and efficiency over the years. Improvements in drilling and completion design have increased 30-day IP rates by approximately 105% since Q4/2011 with 180-day cumulative recovery increasing 63% over the same time period. Drilling times have decreased by 63% since Q4/2011 resulting in reduced completed well costs.
Source: Baytex Energy