The Company plans to invest approximately $50 million in its Strategic Investments in 2013, directed towards drilling and completions in the Liard Basin and continued pre-development work for oil sands projects within Cavalier Energy.
Average sales volumes in January 2013 were constrained to approximately 22,000 Boe/d and increased to approximately 23,500 Boe/d in the last week of February 2013. Paramount's ability to maximize production through its Company-owned and firm-service contracted capacity will likely continue to be impacted by downstream NGLs processing and transportation constraints until the fourth quarter of 2013.
Sales volumes for the first three quarters of 2013 are expected to range between 21,000 Boe/d and 25,000 Boe/d, after giving effect to the first quarter property dispositions, depending upon the availability of downstream NGLs transportation and processing capacity. Sales volumes are expected to increase in the fourth quarter once the expansion of a third-party NGLs pipeline is completed, additional fractionation capacity is secured and the Musreau Deep Cut Facility is on-stream.
After the Musreau Deep Cut Facility starts up in late-2013, the Company will have owned and firm-service contracted natural gas processing capacity of 279 MMcf/d, which will increase to over 300 MMcf/d in 2014 with the addition of the Smoky Deep Cut Facility. Sales volumes are expected to increase to over 50,000 Boe/d by late-2014 as facility processes are optimized and the new long-term NGLs processing contracts come into effect.
FOURTH QUARTER REVIEW
Operating Results
Sales Volumes
Three months ended December 31 -------------------------------------------------------- Natural Gas (MMcf/d) NGLs (Bbl/d) -------------------------------------------------------- 2012 2011 % Change 2012 2011 % Change----------------------------------------------------------------------------Kaybob 63.3 50.8 25 901 901 -Grande Prairie 23.5 19.4 21 1,008 480 110Southern 9.0 11.1 (19) 150 191 (21)Northern 8.3 9.9 (16) 51 23 122----------------------------------------------------------------------------Continuing Ops 104.1 91.2 14 2,110 1,595 32Discontinued Ops - 0.3 (100) - 25 (100)----------------------------------------------------------------------------Total 104.1 91.5 14 2,110 1,620 30---------------------------------------------------------------------------- Three months ended December 31 ------------------------------------------------------- Oil (Bbl/d) Total (Boe/d) -------------------------------------------------------- 2012 2011 % Change 2012 2011 % Change----------------------------------------------------------------------------Kaybob 64 62 3 11,501 9,437 22Grande Prairie 317 333 (5) 5,243 4,048 30Southern 566 687 (18) 2,223 2,741 (19)Northern 266 410 (35) 1,707 2,068 (17)----------------------------------------------------------------------------Continuing Ops 1,213 1,492 (19) 20,674 18,294 13Discontinued Ops - 864 (100) - 929 (100)----------------------------------------------------------------------------Total 1,213 2,356 (49) 20,674 19,223 8----------------------------------------------------------------------------
