Enterra Energy Trust Announces 2010 Capital Budget and Guidance
01 Februar 2010 - 2:00PM
PR Newswire (US)
CALGARY, Feb. 1 /PRNewswire-FirstCall/ -- Enterra Energy Trust
("Enterra", "Our" or the "Trust") announces its capital expenditure
program for 2010 which includes a capital budget of $40 million.
This represents an 85% re-investment rate on Enterra's forecast
cash flow of approximately $45 million. Price assumptions
underlying this cash flow include US$77.50/bbl WTI oil and
US$4.50/mmbtu natural gas at NYMEX. Any surplus cash flow is
expected to be used to advance successful drilling programs,
acquire additional assets or to reduce debt. This program is
conservatively designed within anticipated cash flow, while still
sufficiently flexible to direct investment to the Trust's best
opportunities. Capital Program Highlights: - Enterra plans to drill
up to 26 wells including, - Two to four oil wells at our Circus
prospect in Oklahoma - Two oil wells in west central Alberta
targeting the Cardium formation - Up to 12 liquids-rich gas wells
in our Hunton resource play in Oklahoma - The Hunton drilling
program is scheduled to begin late in the second quarter and
continue through the end of the year. - The remaining budget will
be directed to a variety of drilling opportunities throughout our
portfolio. - The program is anticipated to replace reserves
produced over the year. Enterra's current production is
approximately 9,550 boepd and the forecast is for a relatively flat
production profile with an average 2010 production range from 9,200
to 9,700 boe per day. This forecast does not take into account the
re-activation of our Ricinus natural gas well which has been
shut-in since July 2009 due to low commodity prices. The Ricinus
well would add up to 500 boe per day for the full year and would be
brought back on production in a sustained higher gas price
environment than forecast. Without the Ricinus re-activation, the
portfolio will consist of approximately 46% natural gas and 54% oil
and natural gas liquids. Enterra's 2010 capital program is weighted
towards oil and natural gas liquids projects and if successful,
will gradually grow the production weighting towards liquids over
the course of 2010. Don Klapko, President and CEO says, "Enterra
intends to ramp up the execution of its growth-oriented drilling
programs in our Circus (Oklahoma) and Cardium (Alberta) oil plays
during the first part of the year and then further develop our
Hunton resource play, primarily in the second half of the year. We
have plenty of room to build on our successes and exploit our solid
asset base. We have budgeted conservatively, allowing ourselves
further flexibility should commodity prices continue to rebound. We
have tried to maintain an equal balance between our areas of
operation and between commodities. Our anticipated capex program is
more aggressive than we have delivered over the past couple of
years, and this is a reflection of our evolution to a more growth
oriented corporate model." Despite tremendous market instability
during 2009, Enterra is pleased to announce that it has received
confirmation from the New York Stock Exchange ("NYSE") that it is
in full compliance with all listing requirements of the NYSE. This
is an update from our April 18, 2009 press release regarding the
requirement to maintain a minimum US$75 million market
capitalization under NYSE listing requirements. Enterra continues
to be in compliance with the listing requirements of the Toronto
Stock Exchange. About Enterra Energy Trust Enterra is an
exploration and production oil and gas trust based in Calgary,
Alberta, Canada with its United States operations office located in
Oklahoma City, Oklahoma. Enterra's trust units and debentures are
listed on the Toronto Stock Exchange under the symbols (ENT.UN,
ENT.DB, ENT.DB.A) and Enterra's trust units are listed on the New
York Stock Exchange under the symbol (ENT). The Trust's portfolio
of oil and gas properties is geographically diversified with
producing properties located principally in Alberta, British
Columbia, Saskatchewan and Oklahoma. Production is comprised of
approximately 55 percent crude oil and natural gas liquids and 45
percent natural gas. Enterra has compiled a multi-year drilling
inventory for its properties including its new oil play
opportunities in the Cardium in west central Alberta and the Circus
prospect in southern Oklahoma. Forward-Looking Statements Certain
information in this press release constitutes forward-looking
statements under applicable securities law. Any statements that are
contained in this press release that are not statements of
historical fact may be deemed to be forward-looking statements.
Forward-looking statements are often identified by terms such as
"may," "should," "anticipate," "expects," "seeks" and similar
expressions. Forward-looking statements necessarily involve known
and unknown risks, including, without limitation, risks associated
with oil and gas production; marketing and transportation; loss of
markets; volatility of commodity prices; currency and interest rate
fluctuations; imprecision of reserve estimates; environmental
risks; competition; incorrect assessment of the value of
acquisitions; failure to realize the anticipated benefits of
acquisitions or dispositions; inability to access sufficient
capital from internal and external sources; changes in legislation,
including but not limited to income tax, environmental laws and
regulatory matters. Readers are cautioned that the foregoing list
of factors is not exhaustive. Readers are cautioned not to place
undue reliance on forward-looking statements as there can be no
assurance that the plans, intentions or expectations upon which
they are placed will occur. Such information, although considered
reasonable by management at the time of preparation, may prove to
be incorrect and actual results may differ materially from those
anticipated. Forward-looking statements contained in this press
release are expressly qualified by this cautionary statement.
Additional information on these and other factors that could affect
Enterra's operations or financial results are included in Enterra's
reports on file with Canadian and U.S. securities regulatory
authorities and may be accessed through the SEDAR website
(http://www.sedar.com/), the SEC's website (http://www.sec.gov/),
Enterra's website (http://www.enterraenergy.com/) or by contacting
Enterra. Furthermore, the forward looking statements contained in
this news release are made as of the date of this news release, and
Enterra does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by securities law. DATASOURCE: Enterra Energy
Trust CONTACT: Blaine Boerchers, Chief Financial Officer, (403)
263-0262 or (877) 263-0262, , http://www.enterraenergy.com/
Copyright