Seven Generations Energy board approves 2019 capital investment budget of $1.25B
Seven Generations Energy's Board of Directors has approved a 2019 capital investment budget of $1.25B that is expected to be funded from operations and that, given the current price environment, strikes a reasoned balance between current production and future growth projects. "Our 2019 budget maintains our balance sheet strength while making prudent investments that position us for greater profitability when commodity prices and market conditions recover. 7G's 2019 capital investments are expected to be approximately half a billion dollars lower than they were in 2018. Despite our lower capital investments, we expect to both maintain production at the 2018 level and make substantial investments for future growth. Approximately 12% of our 2019 budget supports important investments that will enhance understanding of our Lower Montney resource through further delineation drilling and will expand future growth capabilities with valuable infrastructure," said Marty Proctor, 7G's President and CEO. 7G's first-half-weighted capital investment plan in 2018 led to fewer new wells being brought on in late 2018. Similar to previous years, the 2018 investment profile will result in reduced production volumes during the first half of 2019. 7G's 2019 production additions in the second half of the year are planned to coincide with additional oil egress solutions out of Western Canada that should add further support to regional condensate demand and price dynamics.