Terra Energy Corp. Announces Earnings and Production Results for the Second Quarter of 2014; Provides Capital Expenditure Guidance for Full Year of 2014
For the quarter, the company reported that production averaged 3,610 boe/d and consisted of 85% natural gas with 15% oil and liquids.
The capital expenditure plan for 2014 contemplates approximately $14,331,000 of total capital spending to occur during 2014 with approximately $4,514,000 of capital being allocated towards pipeline tie-ins. Consistent with the plan, the majority of capital expended in the first two quarters was in connection with the Grande Prairie and Monias pipeline tie-ins. Each of these two pipeline projects were completed during the second quarter and these pipelines are now operational. The company is experiencing delays and curtailments in its production as a result of third party processor and competing third party operated production issues. The balance of capital expenditure plan for 2014 focuses primarily on 28 to 32 recompletion operations, the purpose of which is not only to increase current production and year end reserves but primarily to increase the level of confidence for the 2015 and 2016 horizontal drilling programs, which are designed to fully exploit these reservoirs. The overall impact of this recompletion program for the second quarter was therefore minimal.