Page 17 - NorthAmOil Week 26

NorthAmOil NEWS IN BRIEF NorthAmOil

UPSTREAM adjusted funds flow and improve our financial remainder of the second-quarter curtailments
liquidity. For the second half of 2020, we were primarily in Malaysia. Including impacts
Baytex provides corporate currently project about 5,000 boepd of heavy from curtailments and planned seasonal
turnaround activity, the company expects to
oil production to remain shut-in.
update brought back on-line, we are revising our report second-quarter production volumes
Taking into account the production
of 960,000 to 980,000 boed. Excluding Libya,
Baytex Energy provides a corporate update production guidance range for 2020 to 78,000 and adjusting for closed dispositions and
that includes the resumption of previously to 82,000 boepd, from 70,000 to 74,000 curtailments, production in the second
shut-in crude oil production. boepd previously. We expect production in quarter of 2020 is expected to be in line with
“As the global supply and demand picture the second quarter to average approximately the same period a year ago and approximately
continues to unfold, crude oil prices have 72,000 to 73,000 boepd. Should operating 5% below the first quarter of 2020.
strengthened from their lows in April and we netbacks change, we have the ability to shut-in “ConocoPhillips established a consistent
are now starting to benefit from the steps we additional volumes or restart wells in short set of criteria for evaluating and implementing
have taken. We have restarted approximately order. economic curtailments during the recent
80% of the previously announced shut-in As operations resume, we remain intensely weakness in netback oil prices,” said Ryan
volumes, which will have a positive impact focused on driving further efficiencies to Lance, chairman and chief executive officer.
on our adjusted funds flow. At current capture or sustain cost reductions previously “Due to our strong balance sheet, we were
commodity prices, we expect to generate identified during the downturn, while in an advantaged position to create value for
positive free cash flow over the remainder of protecting the health and safety of our shareholders by forgoing some production
2020 and maintain over $300mn of financial personnel. and cash flow in the second quarter in
liquidity,” commented Ed LaFehr, president BAYTEX ENERGY, June 25, 2020 anticipation of receiving higher cash flows for
and chief executive officer. those volumes in the future.”
We continue to forecast capital spending ConocoPhillips provides The company continues to monitor
for this year of $260 to $290 million, which netback pricing and evaluate curtailments
represents an approximate 50% reduction update on production across its operated assets on a month-
from our original plan of $500 to $575 by-month basis. Based on the company’s
million. With this revised capital program, we curtailment activities economic criteria, it expects to begin
suspended drilling operations in Canada and restoring curtailed production in Alaska
expect to see a moderated pace of activity in ConocoPhillips today announced its during the month of July. In the Lower 48
the Eagle Ford. estimated production curtailment impacts region, the company also expects to begin
We previously announced that we had for the second quarter of 2020 and provided bringing some curtailed volumes back on
voluntarily shut-in approximately 25,000 comments on future curtailments. line during July and will continue to make
boepd of production. These volumes For the second quarter of 2020, the economically driven production decisions
remained off-line for April and May. As company’s curtailments were primarily related at the asset level in the months ahead. At
operating netbacks improved in June, we to oil production and averaged approximately Surmont, the company is also planning to
initiated plans to bring approximately 80% 225,000 barrels of oil equivalent per day increase production from curtailed levels in
of these volumes back on-line. At current (boed) on a net basis. Of the total net the third quarter. Given ongoing variability
commodity prices, the resumption of curtailments, approximately 65% were in the and uncertainty in the outlook for production
production from these previously shut-in Lower 48, 15% were in Alaska and 15% were curtailments, the company will continue
barrels will have a positive impact on our in the Surmont operation in Canada. The to suspend forward-looking guidance and
sensitivities.
The company will announce second-
quarter operational and financial results on
July 30.
CONOCOPHILLIPS, June 30, 2020
Cycle Energy Industries

signs purchase agreement

for California oil asset

Cycle Energy Industries is pleased to report
it has entered into a purchase agreement to
purchase 60% working interest in Lost Hills
Oil Field in Kern county California.
The purchase agreement states Cycle will
purchase 60% right and interest in and to
the Harvest Petroleum asset Northwest Lost
Hills lease and Lerdo lease in California and
all material, surface, mineral rights, wells,
equipment, facilities and infrastructure.

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