CNR plans increases in production, capex

Canadian Natural Resources Ltd. (CNR), Calgary, said its overall production target for 2017 will range 833,000-883,000 boe/d compared with a 2016 average of 808,000 boe/d.

The production forecast stems from a capital budget for 2017 of $3.89 billion (Can.), slightly higher than 2016 capital spending of $3.845 billion (Can.).

Crude oil and natural gas liquids production is forecast to increase 9% from 2016 levels. The hike is largely a result of the October completion of Phase 2B of the Horizon oil sands expansion north of Fort McMurray (OGJ Online, Oct. 18, 2013).

Completion of the last major component of the expansion, Horizon Phase 3, is slated for fourth-quarter 2017. Horizon is 100% owned by CNR.

Companywide, CNR is expected to have an overall production mix of about 65% crude oil and NGLs and 35% natural gas.

Gas production is expected to increase 2%. CNR plans 21 net wells targeting natural gas vs. 9 wells in 2016.

The company is planning to drill 15 net wells in a heavy oil drilling program at Pelican Lake, the first wells drilled at the polymer flood operation since late 2014.

CNR said it will drill three net producing wells in the North Sea in 2017, noting that economic investment in the North Sea has become more viable due to changes in the UK’s tax regime in 2016.

The company on Dec. 16 said it has completed the sale of its interest in Cold Lake Pipeline Ltd. to Inter Pipeline Ltd. (OGJ Online, Dec. 13, 2016).

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