The Company estimates its first quarter 2013 production will be 3,900 to 4,200 BOED, of which approximately 55% is from high netback Cardium properties. Oil and NGL production is estimated to be approximately 43% of total BOED production in the quarter.
Total Company operating netbacks averaged $26.50 per BOE in the fourth quarter of 2012. Cardium operating netbacks averaged $44.32 per BOE in the fourth quarter. Operating netbacks per BOE in the first quarter of 2013 are estimated to be similar to the fourth quarter of 2012. Full cycle three year average FD&A costs including future development capital in the Cardium play were $36.77 per BOE on a TP basis and $25.81 on a P&P basis. Using three year production weighted average Cardium operating netbacks, this yields a recycle ratio of 2.03 on a P&P basis.
The Company's first slick water frac completion was in February 2012. Since then, six new wells were frac'd with this technique, yielding substantially better initial production rates and economics. The Company continues to be an industry pacesetter for low costs with Cardium horizontal drilling and completion costs in this past winter's program averaging $2.3 million per well. The wells drilled in the past winter are connected via short tie-ins to the Company's pre-built infrastructure which reduced equipping and tie-in costs. The Company was able to drill wells in 10 to 15 days depending on the depth drilled, slick water fracture stimulate the wells approximately seven days later and have new oil production the following day, for an impressive cycle time average of 20 days.
The Company has seen five consecutive years of long term gas price declines by its independent reserves engineers. The Company no longer has any undeveloped shallow gas reserves contained in the reserves evaluation as of December 31, 2012. The Company's shallow gas land, drilling locations and infrastructure awaits better natural gas pricing before drilling and well tie-in operations can resume. Today, 75% of the Company's P&P reserves are located in the Cardium properties, and these Cardium properties comprise 90% of the pre-tax NPV 10 value of the Company.
Anderson has not drilled a gas well since mid-2010, and has been entirely focused on converting its historical shallow gas asset base into a Cardium light oil horizontal development company. This transition to light oil is necessary. The average NYMEX natural gas price in 2012 was $2.83 US per MMBtu. This resulted in an average natural gas price received by the Company of $2.21 per mcf in 2012, and the lowest natural gas price seen in the Company's 11 year history. To put this price in perspective, the Company's average natural gas price from 2009 to 2011 was $3.84 per mcf, and from 2006 to 2008 was $7.04 per mcf. In contrast, light oil prices remain very good, and unlike the heavy oil "bitumen bubble" which has caused heavy oil price differentials to widen out, the light oil price differential (i.e. the difference between the Edmonton par reference price and the WTI Cushing price) was $7.87 US per bbl in 2012, and is estimated to be $6.08 US per bbl in March 2013. All of the Company's oil production is light oil. Anderson realized a field oil price (excluding hedging) of $83.21 per bbl in 2012 and estimates it will be slightly higher in the first quarter of 2013. Today, Anderson has the advantage of being totally focused on light oil development drilling in the Cardium formation with 165 gross (90 net) sections of Cardium prospective land. Our Cardium net drilling inventory increased by 35% in the past 12 months to 232 gross (148 net) drilling locations, and 74% of the net drilling inventory can be connected to our owned and operated facilities.
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