Zargon's 2013 non-ASP field capital budget has been set at $40 million (before dispositions) of which approximately $26 million will be spent in the remaining three quarters. Our 2013 capital budget incorporates $20 million of property dispositions, of which $7.8 million have been completed by early May. For the remainder of the year, the drilling of the 10 remaining budgeted wells will be contingent on the successful execution of this $20 million property disposition program.
Although during the "2013 ASP heavy capital spend" period, we have deferred components of our oil exploitation drilling programs, we will not be deferring our general oil exploitation capital programs related to waterflood modifications, pumping upgrades, facility optimizations, etc. These ongoing projects provide very strong returns and moderate our base corporate oil declines from the 21 to 14 percent range. Additionally, we will continue to monitor the improving natural gas prices and will optimize and re-activate shut-in gas wells when appropriate. Zargon shut-in a significant amount of natural gas wells in 2012 due to low natural gas prices.
Also, Zargon has entered into a significant oil hedging program to provide a measure of stability and predictability to cash flows during the ASP construction phase. For the remainder of 2013, Zargon has hedged 3,000 barrels per day at $97.32 US/bbl WTI, while for 2014 an average of 2,300 barrels per day is hedged at $91.92 US/bbl WTI.
In the March 12, 2013 year end press release, Zargon provided updated first quarter 2013 oil production rate guidance of 5,150 barrels of oil and liquids per day. Actual first quarter volumes were 5,113 barrels of oil and liquids per day or about one percent below guidance. The press release also set Zargon's first quarter 2013 natural gas production guidance of 15.6 million cubic feet per day. First quarter actual volumes were 15.2 million cubic feet per day or about three percent below guidance.
Oil and liquids production for the 2013 second quarter is set at 4,800 barrels of oil per day and reflects estimated reductions of 100 barrels of oil and liquids per day for spring break-up shut-ins and 40 barrels of oil and liquids per day for second quarter property dispositions. Second quarter natural gas production guidance is set at 15.0 million cubic feet per day.
For the remainder of the year, production volumes will depend on the magnitude and timing of our property disposition programs along with related timing of our drilling programs and consequently a broad range of outcomes are possible. Full-year 2013 average oil and liquids production is now expected to range between 4,700 to 4,900 barrels of oil per day, with exit rates ranging from 4,400 to 4,700 barrels of oil per day. Full-year 2013 average natural gas production is now expected to range between 14.8 to 15.0 million cubic feet per day, with exit rates ranging from 14.5 to 14.9 million cubic feet per day. Looking forward, we expect that first quarter 2014 production volumes will represent both an oil production low and a turning point for Zargon, as in subsequent quarters, significant production volumes will begin to materialize from the ASP project and from oil exploitation drilling programs that will have been reactivated once the substantial ASP phase 1 capital program is completed.
Finally, I would like to personally acknowledge Mr. Graham Weir who has decided to not stand for re-election to the Zargon Board this year. Graham joined our Board in October 2003 and over the past 10 years has served Zargon and its shareholders well through his thoughtful counsel and advice. We thank Graham for his significant contributions and wish him the very best in his future endeavours.
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