Eagle Energy Trust said Dec. 11 it has approved a 2016 capital budget of C$10.2 million, including US$7 million for its operations in the U.S.
Eagle's 2016 plans include drilling five additional wells at its Salt Flat and Hardeman properties in Texas and Oklahoma "to gain further recovery," said Wayne Wisniewski, COO.
The Calgary, Alberta-based company's budget consists of:
- 3 (3 net) horizontal oil wells in Salt Flat located in West Texas, including seismic processing, facilities and pump changes;
- 2 (2 net) vertical wells in Hardeman, Texas and Oklahoma, including seismic processing and pump installs;
- Pipeline and facilities in Dixonville, Alberta (nonoperated); and
- Facility capital at Twining, Alberta.
Currently, the company's drilling program is expected to exceed a 30% rate of return at US$45 West Texas Intermediate flat oil pricing, Wisniewski said.
"In addition, we have the flexibility to increase capital spending in the second half of 2016 should commodity prices improve," he said in a statement.
The capital budget excludes corporate and property acquisitions, which are evaluated separately on their own merit, the release said.
Eagle also said it has reduced its distribution by 50% to $0.015 per unit per month due to the current low commodity price environment.
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