Parallel Energy Trust announced its capital expenditure plans, and production and cash flow guidance for 2014.
Capital Expenditure Plans and Production Guidance
Parallel's capital expenditure budget for 2014 is estimated to be approximately US$13.5 million, which is expected to result in annual average daily production of 7,100 to 7,300 boe/day. The principal drilling and operations assumptions underlying this guidance are that Parallel will:
◾ drill, complete and tie-in up to 14 gross wells for a total cost of US$9.5 million. The wells are currently expected to be single lateral wells completed using Parallel's proven drilling techniques. The average 30 day initial production rate is anticipated to be in the range of 35 to 40 boe/day per well, resulting in capital efficiencies of less than $20,000 per flowing boe/day;
◾ spend approximately US$2 million on workovers, consistent with the number of workovers Parallel completed in 2013; and,
◾ purchase additional equipment and perform planned compressor overhauls in the Carson operating area for a total cost of US$2 million.