Painted Pony Petroleum Ltd. reduced its 2016 capex program by 8% to CA$197 million, down from CA$215 million, the company said Jan. 25. Also, the 2017 capex will be reduced by 15% to $298 million, down from the previous CA$350 million estimate.

For 2016, the production forecast remains at about 138 million cubic feet equivalent per day (MMcfe/d) or 23Mboe/d. By the end of the year daily production will likely exceed 240MMcfe/d or 40Mboe/d, Painted Pony said.

Drilling, completion and equipping costs per well were reduced through efficiencies in the six most recent completions, to CA$5.4 million, down from the estimated CA$5.9 per well. More frack stages completed per operational day, reduced water usage and other efficiencies drove the price down, the company said. The four most recent net wells were completed in three days compared with the estimated four days per well.

Because of these efficiencies, the 2016 capex forecast was reduced to CA$197 million, 31% less than the original five-year plan’s estimate of CA$287 million, and 8% lower than the November 2015 estimate of CA$215 million for the year. When combined with reduced infrastructure costs, the revised 2017 forecast of CA$298 million is 31% lower than the original five-year plan’s CA$435 million estimate, and 15% lower than the November 2015 estimate of CA$350 million, the company said.

There are three rigs drilling in the Blair and Townsend areas as part of a planned 29 net well drilling program for this year. Drilling and completions operations necessary for the startup of the AltaGas Townsend Facility are also on schedule, the company said, adding that the facility is about 70% complete and commissioning should begin in the middle of this year.

Current year-to-date production is about 105MMcfe/d or 17,500boe/d. Production during the first quarter of 2016 will average about 99MMcfe/d or 16,500boe/d.

Looking ahead to 2017, the production forecast of about 288MMcfe/d or 48Mboe/d is maintained.

Painted Pony Petroleum Ltd. is based in Calgary, Alberta.