Enterra Energy Trust Meets 2008 Production Guidance
8:02a ET February 19, 2009 (Market Wire)
Enterra Energy Trust ("Enterra") reports 2008 production highlights:
- Exit rate of 9,804 boe per day which was within the range of previously announced guidance (9,600 - 10,100 boe per day).
- Average production of 10,283 boe per day for the year, also within the range of guidance announced (9,700 - 10,300 boe per day).
- Drilled ten (2.3 net) wells in Oklahoma during the fourth quarter, resulting in eight liquids-rich gas wells.
- Drilled six (5.6 net) wells in Canada during the fourth quarter, resulting in three oil wells and three gas wells.
- Total wells drilled in 2008 were 42 (17.4 net), with 97 percent success, resulting in 31 (8.7 net) gas wells, eight (7.2 net) oil wells and one saltwater disposal well.
"We are very pleased to have again met our production guidance at the end of 2008, culminating an important year operationally for Enterra," commented Jim Tyndall, Senior Vice President Operations and Chief Operating Officer of Enterra. "We stabilized our production after significant asset sales in early 2008 and participated in a very active and successful drilling program. Going forward, we will apply the same disciplined processes that ensure we live within our means, control our costs and manage our investments wisely."
Beginning with the 2008 exit rate of 9,804 boe per day and going forward, Enterra will be reporting natural gas liquids ("NGL") volumes from its Oklahoma operations in accordance with the new forms of midstream processing contracts. This change will result in an approximate initial increase of four percent in Enterra's barrel of oil equivalent volumes. In the second quarter of 2009 as another contract takes effect, an additional increase of approximately three percent will occur.
The midstream contracts which prompted the reporting change provide direct compensation for NGL volumes. The new prices have been staging into effect since the agreements were finalized in May 2008 and will continue to phase in during the first half of 2009. The full reserves value of these positive changes will be reflected in Enterra's upcoming year end 2008 reports.
Enterra's Oklahoma drilling program continues with four wells to be drilled in the first quarter of 2009. Canadian capital programs have been significantly curtailed to provide cash flexibility in the interim as economic conditions stabilize and with the expectation that commodity prices will recover later in 2009. Enterra has established strict internal economic hurdles for projects and is directing its capital expenditures to where its best returns exist.
