Advantage Oil & Gas announces 2018 capital budget of $175M
Advantage Oil & Gas is pleased to announce that its Board of Directors has approved a 2018 capital budget of $175M funded through cash flow that prudently advances our industry leading low cost Montney development and results in increasing liquids production growth through 2018 and beyond from our assets at Glacier, Valhalla, Wembley and Progress. Advantage's significant and growing inventory of commercial liquids rich natural gas development opportunities was recently extended by a 4 well pad at Valhalla which demonstrated a combined initial production flow rate of 6,410 boe/d comprised of 32 mmcf/d gas and 1,075 bbls/d of liquids (based on Glacier gas plant shallow cut extraction process) with certain liquid yields comprised of 90% free condensate/oil in excess of 100 bbls/mmcf. Middle Montney results at Glacier in 2017 also extended our liquids rich fairway and confirmed well performance improvements from frac design technology changes which will be applied to high liquids rich areas and reservoir layers within our Montney lands. In addition, well results from our liquids rich lands at Wembley and Progress are expected to be available by early 2018. The Corporation's 2018 budget has been designed with significant flexibility to modify capital expenditures, capital allocation and production in H2 2018 or 2019 while advancing our liquids development initiative. The Corporation's 2018 capital budget of $175M maintains a year-end 2018 total debt to cash flow of 1.3x (AECO price of Cdn $1.75/mcf & WTI $55 US/bbl).