Geocan Okays $31.5M Capital Program for 2007
The directors of GEOCAN Energy Inc. have approved the Company's 2007 capital program, which includes approximately $31.5 million for the drilling of 34 gross wells (29.20 net), land acquisitions within core areas, various seismic programs and a number of facilities projects. GEOCAN plans to fund its 2007 capital program from cash flow and existing bank credit facilities.
The Company plans to make the first quarter 2007 the most active by drilling 14 of its 34 wells. The Company expects to drill 7 oil wells (6 development wells and 1 exploration well) and 7 gas wells (3 development wells and 4 exploration wells). These wells will target either low risk near term production additions or winter only access locations that will test new play concepts.
The 2007 capital program will focus on drilling within GEOCAN's high working-interest core areas of northeast British Columbia ($9.9 million), Lloydminster ($7.8 million), west central Alberta ($4.1 million), Peace River area ($1.8 million), and central Alberta ($0.9 million).
In addition to the $24.5 million allocated to drilling, the Company will spend $1.9 million on 2D and 3D seismic programs, $1.7 million on project work (inclusive of facilities upgrades), $0.5 million on reactivations and recompletions work and $2.9 million on land acquisitions. Existing undeveloped land now comprises approximately 168,360 gross (128,720 net) acres.
Under GEOCAN's 2007 drilling program, the Company plans to drill 15 exploratory wells and 19 development wells. Approximately 53% of the wells will target oil and 47% of the wells will target natural gas with all but two of the natural gas wells being drilled in the west central Alberta or northeast British Columbia core areas.
GEOCAN is an oil and gas company with operations in British Columbia, Alberta and Saskatchewan and currently has 56.2 million basic common shares issued and outstanding.
- Arsenal to Acquire GEOCAN's Shares (Aug 08)
- GEOCAN Closes Sale of Heavy Oil Assets for $50.9 Million (Mar 07)
- GEOCAN Appoints Tristone Capital to Review Strategic Alternatives (Mar 07)