Page 10 - NorthAmOil Week 27

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NEWS IN BRIEF
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UPSTREAM
Montage Resources Corporation announces reduction in 2019 activity and capital expenditures while reaffirming full year production guidance as operational synergies and well performance continue to deliver outstanding results
Montage Resources today provided an operational update for the second quarter 2019 and announced a reduction in its planned activity level for the second half of 2019 along with second quarter earnings release and conference call information.
During the second quarter of 2019, Montage Resources continued to deliver strong performance on its previously announced plan. e company currently expects its second quarter 2019 production
to be above the high end of its previously announced guidance and to exceed current consensus expectations. As a result of
the company’s strategy shi designed to dramatically reduce cycle times by more than 30% over the prior year, the company has been able to realize a number of operational e ciencies that have accelerated the timing and number of wells turned in line during the quarter.
ese accelerated turn-in-lines, when coupled with exceptional individual well
performance, allowed the company to achieve higher production levels while spending less on a per well basis. e company continues
to realise service cost reductions in the Appalachian basin, further enhancing its
peer leading cost structure to below the $870 per foot level presented with the 2019 plan. Substantial declines in completed well costs and operating expenses continue to enhance cash operating margins and support robust well economics in the current commodity price environment.
e company remains committed to a disciplined growth strategy for 2019 that delivers approximately 20% production growth over 2018 while maintaining a strong balance sheet with low leverage, ample liquidity and controlled capital spending. Given increased operational e ciencies
as well as the currently anticipated lower commodity price environment for the second half of 2019, the company is reducing activity to one gross operated rig from the two gross operated rigs it is currently running. MONTAGE RESOURCES, July 08, 2019
MIDSTREAM
Enterprise begins service on Orla 3
Enterprise Products Partners today announced that service recently began on the third train at its Orla cryogenic natural gas processing plant in Reeves County, Texas. e completion of the nal announced processing unit at Orla increases natural gas processing capacity at the facility to 900mn cubic feet
per day and allows Enterprise to produce in excess of 140,000 barrels per day of natural gas liquids (NGLs).
roughout the Permian Basin, Enterprise now has the capability to process 1.3 billion
cubic feet of natural gas and produce approximately 200,000 bpd of NGLs.
“ e three trains at Orla that have been brought online over the past year re ect Enterprise’s agility and commitment to providing timely and e cient solutions for facilitating production growth in the proli c Permian Basin,” said AJ “Jim” Teague, chief executive o cer of Enterprise’s general partner.
“And we are not through yet expanding our processing capabilities in the Permian. e Mentone cryogenic natural gas processing facility in Loving County, Texas, which will have the capacity to process 300mn cf/d of natural gas and extract in excess of 40,000
bpd of NGLs, is on schedule for completion
in the rst quarter of 2020, and we are actively negotiating contracts with customers to underwrite additional capacity.”
Orla and Mentone extend Enterprise’s value chain in the Permian and Delaware basins, linking customers to the company’s integrated pipeline network, including the recently completed Shin Oak pipeline and the Texas Intrastate natural gas system.
In addition, the company’s Mont Belvieu complex, where 300,000 bpd of fractionation capacity is under construction and expected to be available in 2020, as well as an extensive system of Gulf Coast export docks provide unsurpassed access to the most attractive domestic and international markets. ENTERPRISE PRODUCTS PARTNERS, July 09, 2019
Medallion announces binding open season for new crude oil gathering system and joint tariff service
Medallion Midland Gathering and Medallion Pipeline are conducting an open season to solicit binding, long-term commitments to support a new crude oil gathering system
in the Midland Basin and a new joint tari transportation service to be provided by MMG and Medallion.
rough the joint tari service, shippers will receive an integrated transportation service for the transportation of crude oil produced in the Midland Basin to multiple market centres and long-haul pipelines connected to the Medallion pipeline system. Prospective shippers will have the opportunity to participate in the open season and make binding commitments to both MMG
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Week 27 11•July•2019