Baytex plans 30 new wells for Eagle Ford

By Luke Geiver | December 17, 2018

Baytex Energy Corp. is focusing on two plays in 2019: the Eagle Ford of Texas and the Viking shale play of Canada. To produce 97,000 boe/d, Baytex intends to invest $650 million. The Eagle Ford will receive 38 percent of the total budget and represents a major production focus for Baytex next year. The Canadian exploration and production company that merged with Raging River Exploration earlier this year, intends to bring 30 new wells online in 2019 from the lower Eagle Ford.

Nearly all of the capital budget is going towards production and drilling, with roughly 45 percent of the planned activity scheduled for the first half of the year.

At $52/b West Texas Intermediate pricing on oil, Baytex said it will earn a $22/b operating net back. The company has hedged roughly 30 percent of its production for next year. A US$1.00/bbl change in the price of WTI impacts Baytex’s annual adjusted funds flow by approximately $30 million on an unhedged basis ($24 million on a hedged basis).

Following its merger, Baytex has reduced is headcount at its heavy oil assets including the number of executives needed to oversee the assets.

Ed LaFehr, president and CEO, said the company will be disciplined with capital allocation in 2019 and that it will keep “operational flexibility,” to adjust spending plans based on changes in the commodity price environment.