Junior producer Delphi Energy is planning capital spending of between $65 million and $70 million this year, doubling up its drilling presence in the Montney by adding a second rig.
By the end of the year, the company expects to increase production about 60 percent compared to year-end 2016, up to 11,500 boe/d.
The 2017 development plan includes 13 Bigstone Montney horizontal wells and the completion and tie-in of 14.
“A second rig commenced drilling operations in December 2016 and is expected to remain active throughout our 2017 drilling program, allowing the company to proceed with pad drilling that will realize further cost savings,” Delphi said in a statement.
Liquids production is expected to more than double, the company said, increasing to about 2,800 boe/d by the end of this year.
“Field condensate yields of the most recent wells have increased two to four times compared to the average yields realized from the previous 25 wells. Increase condensate yields of this magnitude on the new wells, combined with higher forecast condensate prices in 2017 have the compound result of doubling revenue per boe.”