Birchcliff BOD Approves $105 Million Capital Budget, Less than Cash Flow
Birchcliff Energy Board of Directors has approved a capital budget of $105 million for 2008, which is less than expected 2008 cash flow. Birchcliff expects to spend approximately $55 million during its winter drilling program. Depending on drilling results, future commodity prices and industry conditions, Birchcliff can prudently increase its capital expenditure program in the second half of 2008 bringing the total CAPEX Program up to $175 million.
Birchcliff's winter drilling program includes utilizing up to 4 drilling rigs which will be focused on the Montney/Doig horizontal natural gas drilling program, the Worsley light oil development and exploitation program and other oil and natural gas exploration drilling in the Peace River Arch. Birchcliff currently has 3 rigs working and anticipates a 4th rig commencing in early February 2008.