Paramount Resources is settling in as its new self following the close of its acquisition of Apache Canada and merger with Trilogy Energy.
The Montney-focused company quadrupled its sales volumes in the third quarter as a result of the deals, but that’s not even close to the production rate expected once it has a full quarter with the assets on its books.
Sales volumes in the third quarter of 2017 averaged 49,023 boe/d, which includes 46 days of production from the Apache Canada assets and 19 days of production from the Trilogy assets. This is up from 11,148 boe/d in the third quarter of 2016.
For the full month of October, the first full month of the combined three entities, Paramount says production averaged more than 98,000 boe/d.
The all-share Trilogy merger was completed in mid-September, and the $459 million Apache purchase was closed in August.
Paramount reported net income of $223.5 million for the third quarter of 2017 compared to $1.029 billion in the third quarter of 2016.
The company plans to spend $600 million in 2018 targeting liquids-rich development: 68 percent in the Montney play, 23 percent in the Duvernay play, 6 percent maintenance/optimization and 3 percent on “other liquids-rich projects.”
The budget is based on US$50/bbl WTI, US$1.00 AECO and a foreign exchange rate of C$1.25 per US dollar.
Paramount plans to spend about 50 percent of its $130 million planned fourth-quarter capital spend gearing up for the 2018 development program including lease construction, drilling operations and ordering of long-lead items.