LGX Oil + Gas Inc. Enters into $30 Million Bank Facility; Spuds First Horizontal Well in 2014 Alberta Bakken Development Drilling Program; Revises Production Guidance and Provides Capital Spending Guidance for the Full Year 2014
LGX Oil + Gas Inc. spud the first well (15-25-8-24W4) of a budgeted two well horizontal drilling program on August 13, 2014, targeting the Big Valley Formation with first production anticipated in the fourth quarter of 2014. This well offsets LGX's highly successful 14-2 well drilled late in 2013. LGX will now drill the 15-25 well at 100% working interest and expects to also drill the second well at 100% working interest. The company now expects to spud the second well in mid-September 2014 immediately following rig release of the first well with first production anticipated late in the fourth quarter of 2014. These wells were delayed slightly from the original budget due to the late arrival of the drilling rig.
As a result of the above developments, the company now expects average production of approximately 1,000 Boe per day for 2014 with exit production of 1,500 Boe per day (exit production is approximately 67% higher than 2013 exit production guidance). The company revised its 2014 exit production guidance to 1,500 Boe per day from the previously announced exit production guidance of 1,400 Boe per day.
To account for the increase in working interest as well as additional scope in the completions of the wells, the company now expects capital spending in 2014 to be approximately $18.5 million.