Birchcliff joins Seven Generations and MEG in cuts to 2020 capital spending | iNFOnews | Thompson-Okanagan's News Source

Current Conditions

Mainly Clear
10.9°C

Birchcliff joins Seven Generations and MEG in cuts to 2020 capital spending

A pumpjack works at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016. A pair of big names in Canada's oilpatch are cutting their capital spending plans in the wake of the sharp plunge in oil prices. THE CANADIAN PRESS/Jeff McIntosh
March 11, 2020 - 2:18 PM

CALGARY - Players in Canada's oilpatch are continuing to cut capital spending plans in the wake of this week's sharp plunge in oil prices.

After markets closed Wednesday, Birchcliff Energy Ltd. said it would defer about $65 million or 19 per cent of its previously announced capital budget, dropping it to about $285 million.

The decision means it will postpone 10 oil wells that were to be drilled and brought on production in Alberta this year, resulting in average output of about 79,000 barrels of oil equivalent per day, down from the previous target of 81,000 boe/d.

Other companies that have cut budgets include Seven Generations Energy Ltd., which shaved its spending plan by $200 million or 18 per cent to $900 million, at the cost of about 15,000 boe/d of average production.

MEG Energy Corp. also cut its 2020 spending plan, dropping it to $200 million from the $250 million it announced in November. It cut its production guidance to about 94,000 barrels per day from 95,500 bpd.

Oilsands major Cenovus Energy Inc. had earlier trimmed its capital spending plan for 2020 to between $900 million and $1 billion, down about 32 per cent from earlier plans.

This report by The Canadian Press was first published March 11, 2020.

Companies in this story: (TSX:MEG, TSX:VII, TSX:BIR)

News from © The Canadian Press, 2020
The Canadian Press

  • Popular kamloops News
View Site in: Desktop | Mobile