Advantage Energy Curtails Up To 130 mmcf/d Of Natural Gas Production

Low natural gas prices have led Advantage Energy (TSX: AAV) to curtail natural gas production in Alberta. The curtailments reportedly began in September, and are expected to continue during the fourth quarter.

Curtailments are currently anticipated to impact up to 130 mmcf/d of natural gas production, in what is said to be a strategic method of cutting production. Production for curtailment is being selected based on variable cash costs an deferring development capital, with current curtailments primarily occurring at Glacier.

Liquid production is said to be unimpacted. Production in the third quarter was estimated at 74,000 boe/d, which translates to 368 mmcf/d of natural gas, 8,100 bbls/d crude oil and 4,600 bbls/d NGL, and includes the impact of 5,000 boe/d of curtailments related to natural gas.

Free cash flow however is said to have been positively impacted, with the 2024 capital program expected to come in near the low end of the 2024 guidance range of $260 to $290 million.

2024 production as a result of the curtailments is expected to average 70,000 boe/d. Outlooks for 2025 are said to remain unchanged, however the curtailments are said to last until pricing recovers.

Advantage Energy last traded at $9.85 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Arizona Metals: The Disappointing Kay Mine Resource Estimate

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

NG Energy Announces Re-Entry Of Istanbul-1 Well Slated To Occur This Month

NG Energy (TSXV: GASX) continues to develop its natural gas project in Colombia. The company...

Thursday, February 11, 2021, 08:59:04 AM

Cost of Natural Gas Goes Negative

Natural gas prices in the leading U.S. shale field have reached their lowest point in...

Wednesday, April 17, 2024, 12:56:23 PM

EPA Expected To Mandate Coal, Gas-Fired Power Plants Install Carbon Capture

According to media reports, U.S. President Joe Biden plans to introduce unprecedented greenhouse gas emission...

Monday, April 24, 2023, 06:17:00 AM

Demand For LNG Fuel Set To Rise As Global Shipping Companies Look To Upgrade Fleet

Amid the growing economic chaos surrounding the coronavirus pandemic, there appears to be an emerging...

Saturday, September 26, 2020, 11:25:00 AM

Southern Energy Announces One For Eight Share Consolidation

It appears that a share consolidation is coming to Southern Energy Corp (TSXV: SOU), a...

Friday, December 10, 2021, 07:53:35 AM