Baytex Energy Trust reported that production averaged 39,304 boe/d during the fourth quarter compared to 38,094 for the third quarter of this year. The fourth quarter volume includes 460 boe/d of under-accrued production from the previous quarter. The average production for the second half of 2007, reflecting the acquisition of the assets at Pembina and Lindbergh completed at the end June, was 38,698 boe/d.
At Pembina, production averaged 5,124 boe/d during the second half of 2007, exceeding the 3,500 boe/d production level at the announcement of this acquisition in May of this year. Battery and compression modifications conducted since the purchase have increased operational reliability, which, together with improved industry cooperation, have contributed to production from this area exceeding expectations.
Baytex is maintaining our 2008 average production guidance of between 37,000 and 38,000 boe/d as production is expected to be modestly curtailed by severe cold weather in the first quarter and spring break-up conditions in the second quarter. The exploration and development capital budget to deliver this production level is set at $150 million.
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