Frontera Energy Hit 71,015 Barrels of Oil Equivalent Per Day to Close 2017, Averaged 64,445 Per Day in Fourth Quarter
Canadian oil company Frontera Energy Corporation (TSX: FEC) hit an an “exit rate production” of 71,015 barrels of oil equivalent per day as of December 31, after royalties and internal consumption, the company announced today.
The Toronto-based company projects to maintain this average level of between 70,000 to 72,000 barrels per day, after royalties and internal consumption, throughout the first quarter of 2018 “assuming normal operating conditions,” said Frontera Energy in a statement.
“2017 was a year of review and stabilization, 2018 is expected to be a year where the company is repositioning for growth.” – Barry Larson, Frontera Energy CEO
Though the 2017 year-end level falls within the company’s exit guidance range of 70,000 to 75,000 barrels per day, Frontera Energy only averaged an estimated 64,445 barrels per day in the fourth quarter. This was below the 71,068 barrel-per-day average from the third quarter, a shortfall that the Toronto-based firm attributed to “downtime experienced in Peru during the quarter.”
In better news from Peru, however, Frontera Energy did report reaching 8,240 barrels per day from Block 192 in the country, which beat its prior expectation of between 6,000 to 8,000 barrels per day.
New Drilling and “Repositioning for Growth”
The company is also ready to begin a drilling strategy that will expand upon the nine active rigs expected to be operational during the first quarter. (Six of the active rigs will be in the Quifa, Cajuar and Jaspe heavy oil areas, with the other three operating on the light oil-focused Guatiquia block.)
In all, Frontera Energy said it plans to drill between 40 to 50 wells during this period, with “40 to 45 will be development-focused and five will be exploration-focused.” Frontera CEO Barry Larson, said that, “2017 was a year of review and stabilization, 2018 is expected to be a year where the company is repositioning for growth.”
The exploration effort will be “focused on the Alligator 2x well on the Guatiquia block, the Acorazado well on the Llanos 25 block, both in Colombia, and the Delphin well on the Z1 block offshore Peru.” Preparation for the Llanos 25 well “is underway with drilling expected to begin in April,” stated Frontera.
“Our teams are working hard on delivering continued operational improvements from our existing producing assets, while a balanced exploration program provides risked upside for both production and resources in the short and medium term,” said Larson.