Production Restart | Curtailment/Shut-In
Gear Energy Turns on Taps After Curtailing Production by 80% in May
Email
Print 
Bookmark
Gear Energy Ltd. reported updates to current and future expected operations.
Puts Restricted Production Back Online
With recent improvement in oil prices, Gear has initiated a gradual production re-start across the majority of the asset base. After initiating shut ins through April, corporate production was restricted by almost 80% in May with approximately 1,300 boe/d delivered to market.
Current estimates are for June production to be approximately 3,700 boe/d, July to be approximately 5,000 boe/d and August to be approximately 6,000 boe/d.
With minimal capital expenditures currently forecast for the remainder of 2020, production is expected to decline slightly through to December, providing an annual average of 5,200 – 5,300 boe/d. (57% Heavy Oil, 28% Light & Medium Oil, 3% NGL’s, and 12% Gas)
Annual guidance is as follows:
|
2020 Guidance |
|
|
Annual Production (boe/d) |
5,200 – 5,300 |
|
Heavy Oil Weighting (%) |
57 |
|
Light/Medium Oil & NGL Weighting (%) |
31 |
|
Royalties (%) |
11 |
|
Operating plus Transportation Costs ($/boe) |
17.00 – 18.00 |
|
G&A Costs ($/boe) |
2.60 |
|
Interest Costs ($/boe) |
2.05 |
|
Capital and Abandonment Expenditures ($ million) |
13 |
Borrowing Base Redetermination Extension
Gear’s lenders have agreed to extend the re-determination of the semi-annual borrowing base to July 10, 2020 to allow for additional time to finalize negotiations and to obtain required approvals.
Borrowings will remain capped at $75 million during this period.
Related Categories :
Curtailment/Shut-In
More Curtailment/Shut-In News
-
Hurricane Delta Shut-In 1.5 Million Barrels (90%) of Gulf of Mexico Production
-
Gran Tierra Resumes Production, Operations as Oil Price Improves
-
Producers Idle GOM Production as Hurricane Sally Approaches
-
Crescent Point Ups 2020 Guidance as Production Resumes; Talks 2021 Outlook
-
Facilities Shut-In Along TX Gulf Coast as Hurricane Laura Descends
Canada News >>>
-
Western Canada Upstream M&A: Q1 2026 Transaction Report
-
Canadan E&P 2026 Program Calls for 448 Net Wells, Up 24% vs. 2025 Plan -
-
EIA’s “Glut” Calls: The 2025 Surplus Claim — and How 2021–2024 Forecasts Actually Held Up
-
Whitecap Details 2026 Duvernay & Montney Program
-
ARC Resources: Lower 2026 Capex, Higher Volumes
