Paramount's 2013 capital budget for exploration and development ("E&D") and Strategic Investments remains at approximately $550 million, excluding land acquisitions and capitalized interest. E&D spending will focus primarily on the Kaybob COU's Deep Basin development. Construction of the Musreau Deep Cut Facility is progressing on-schedule for completion in the fourth quarter and construction of the third-party Smoky Deep Cut Facility will continue into 2014. Drilling activities are continuing in the Kaybob COU through breakup in preparation for the start-up of the deep cut facilities. Strategic Investment capital spending will be directed towards shale gas exploration activities in the Liard Basin and continued front-end engineering and design work for the initial phase of the Hoole Grand Rapids development within Cavalier Energy.
Sales volumes for the second and third quarters of 2013 are expected to range between 21,000 Boe/d and 25,000 Boe/d, 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. Corporate production is expected to ramp up in 2014 to over 50,000 Boe/d, with the timing dependent on the completion of downstream fractionation facilities expansions in which Paramount has secured long-term firm service capacity.
Paramount Resources Ltd. is a Canadian oil and natural gas exploration, development and production company with operations focused in Western Canada. Paramount's common shares are listed on the Toronto Stock Exchange under the symbol "POU".
A copy of the Company's first quarter 2013 report, including Management's Discussion and Analysis and the unaudited Interim Condensed Consolidated Financial Statements, can be obtained at http://media3.marketwire.com/docs/507pou_q1.pdf.
This information will also be made available through:
Paramount's website at: http://www.paramountres.com/investor_relations/quarterlies.html
SEDAR at: www.sedar.com.
Certain statements in this document constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "expect", "plan", "schedule", "intend", "propose", or similar words suggesting future outcomes or an outlook. Forward looking information in this document includes, but is not limited to:
-- expected production and sales volumes and the timing thereof;-- exploration, development and strategic investment plans and strategies and the anticipated costs, timing, and results thereof;-- budget allocations and capital spending flexibility;-- the availability and adequacy of facilities to process, fractionate and transport natural gas and NGLs production;-- the scope, timing, and cost of proposed new facilities and facilities expansions and the expected capacity and benefits of such facilities;-- the timing and scope of the anticipated development of oilsands, carbonate bitumen, and shale gas assets;-- business strategies and objectives;-- sources of and plans for funding Paramount's exploration, development, facilities and other expenditures;-- acquisition and disposition plans; and-- expected drilling programs, well tie-ins, facility construction and expansions, completions and the timing, scope and results thereof.