Husky Energy is accelerating spending on drilling in the Deep Basin and Montney plays while slowing primary heavy oil production.
The shift is tied to the current blowout in the light-heavy oil differential, executives said last week.
Husky has increased its capital spending guidance by $200 million, $100 million of which will be directed to increased drilling in Western Canada and $100 million will be spent in the Asia Pacific region.
In the Deep Basin, “an accelerated drilling program that was increased from an 18 to a 25-well program in the Ansell and Kakwa areas of the Wilrich formation is progressing, with 15 wells drilled and 13 completed,” Husky said in its third quarter results.
“In the oil and liquids-rich Montney formation, four wells have been drilled as part of a 2018 program of up to eight wells, primarily in the Wembley and Karr areas. Three have been completed.”
Husky has “reduced optimization activities” in its non-thermal heavy oil developments, leading to a drop in total oil production in Q3 to 173,700 bbls/d from 184,300 bbls/d the previous year.
The company has lowered its overall oil production forecast for 2018 while boosting its forecast for natural gas, now expecting in aggregate to average 300,000 to 305,000 boe/d, down from 310,000 to 320,000 boe/d previously.