CALGARY, Jan. 8, 2013 /CNW/ - Legacy Oil + Gas Inc. ("Legacy" or the "Company") is pleased to announce its capital and operating budget and associated public guidance for 2013. Continued success in the Company's dominant position in the Spearfish play in southern Manitoba and North Dakota and in its conventional assets in the Williston Basin has added significantly to its drilling inventory.
These areas, along with Turner Valley, will play key roles in 2013 organic
activity and growth.
Legacy expects to spend $290 million in 2013 focused on light oil development with the majority of capital (81 percent) directed to drilling, completions and tie-ins. This capital spending is 12 percent lower than 2011 capital spending and 6 percent lower than 2012 forecast capital spending as a result of continued improvements in capital efficiencies. The capital spending is distributed as follows: drilling, completions and tie ins - $234 million; facilities - $35 million; land and seismic - $13 million and other - $8 million. The majority of the capital spending will be allocated to the Company's major plays: Spearfish (Manitoba and North Dakota) - $80 million (28 percent), Alameda/Steelman - $52 million (18 percent), Turner Valley - $45 million (16 percent), Star Valley - $31 million (11 percent) and Frys/Antler - $28 million (10 percent).
Legacy is planning to drill 128 gross (109.4 net) wells in 2013, targeting high quality light oil. In addition to drilling, the Company is planning capital expenditures on pilot waterfloods at Frys/Antler and Pierson, as well as expansions of the successful pilot waterfloods at Taylorton and Heward. No capital has been budgeted for acquisitions, although the Company continues to evaluate new opportunities, both within and beyond its core areas.
SOURCE Legacy Oil + Gas Inc.
To access over 3,000 of the latest oil projects from across the world visit Projects OGP for free trial today