Crew is maintaining its forecasted average annual production of 27,500 to 28,500 boe per day. In April, production averaged approximately 28,000 boe per day based on field estimates, 8% above the first quarter average, positioning the Company to exit 2013 at its 29,000 to 30,000 boe per day guidance. First quarter funds from operations were impacted by WCS differentials widening dramatically to average 34% of WTI as well as facilities related downtime. Second quarter production is forecasted to average 27,500 boe per day and with narrowing differentials, we are expecting to generate significantly more funds from operations in the second quarter. The Company was disciplined in the first quarter, spending $65.2 million or 12% less than initially budgeted exploration and development expenditures and exited the quarter with $339 million of net debt on a $430 million bank facility. Crew also purchased 59 net sections of land in northeast British Columbia for $20 million and disposed of a non-core asset producing 65 boe per day for $5.2 million. Crew's exploration and development budget of $219 million is currently planned to be funded by funds from operations, bank debt and non-core asset dispositions.
The recently completed Resource Evaluation validates the Company's strategy of acquiring prospective acreage at an attractive valuation. Crew's 292 Montney sections have a resource assignment of 76 TCFE (12.5 billion boe) of TPIIP with the opportunity to materially add to this total if we exercise the option to acquire 81 additional sections for $36 million. Crew plans to become more active drilling in the northeast British Columbia Montney play and will drill three exploratory horizontal wells and will continue with development drilling targeting to fill the expanded Septimus gas plant to approximately 65 mmcf per day by the end of the first quarter of 2014.
Crew would like to welcome Mr. Jamie L. Bowman to its management team as Vice-President, Marketing. Mr. Bowman has over 25 years of oil and gas industry experience and will be a valuable addition to the Company's executive team.
We would like to thank our shareholders for their continued support as well as our employees, consultants and Board of Directors for their hard work and dedication. We look forward to reporting our second quarter results and our progress for long-term value creation initiatives in August, 2013.
NORTHEAST BRITISH COLUMBIA MONTNEY RESOURCE EVALUATION
The following discussion in "Northeast British Columbia Montney Resource Evaluation" is subject to a number of cautionary statements, assumptions and risks as set forth therein. See "Information Regarding Disclosure on Oil and Gas Reserves, Resources and Operational Information" for additional cautionary language, explanations and discussion and "Forward Looking Information and Statements" for a statement of principal assumptions and risks that may apply. See also "Definitions of Oil and Gas Resources and Reserves". The discussion includes reference to TPIIP, DPIIP, UPIIP and Contingent Resources per the Sproule Associates Ltd. ("Sproule") Resources Evaluation effective as at May 1, 2013, prepared in accordance with the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook"). Unless indicated otherwise in this news release, all references to Contingent Resource volumes are Best Estimate Contingent Resource volumes.
Sproule was engaged to conduct an independent Montney resource evaluation of Crew's 292 net Montney sections located in Northeast British Columbia ("NEBC") (the "Evaluated Areas") effective as of May 1, 2013 (the "Resource Evaluation"). The Resource Evaluation confirms the development and resource potential on the Company's land base. Crew's NEBC Montney assets allow us to navigate through commodity price cycles given the range of Crew's Montney landholdings with exposure to liquids rich gas, crude oil and dry natural gas (gas containing greater than 95% methane). The Resource Evaluation reaffirms Crew's belief in the considerable potential that exists to further increase our current reserve base, highlighting the world class potential of the NEBC Montney.
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