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ARC E N E R G Y

T R U S T

OPERATIONS

REVIEW

In 1997, expenditures of $8.8 million were undertaken to maintain existing facilities and increase production and reserves, thereby strengthening unitholder distributions and increasing asset values. Numerous initiatives including drilling, completion, tie-ins, facility modifications and production optimization were undertaken through many of our properties including Caroline, Pembina, Progress, Inga, Elmworth, Wilson Creek, Meekwap, Minnehik Buck Lake, Sylvan Lake, House Mountain, Midale, Niton and Innisfail.

During the course of the year, production volumes increased as a result of acquisition and development activities. The 1997 exit rate was 10,750 barrels of oil equivalent per day, compared to 7,650 barrels of oil equivalent per day in 1996. Over the year natural gas sales averaged 38.4 million cubic feet per day, oil production averaged 3,656 barrels per day and condensate and natural gas liquids volumes averaged 1,929 barrels per day. Operating costs, net of processing income, averaged $5.16 per barrel of oil equivalent for the year.

Production by Area Oil (Bbls/d)

Pembina area

Gas (Mcf/d)

NGLs (Bbls/d)

Total (Boe/d)

1,688

1,284

107

1,923

Caroline

2,457

1,211

1,457

Progress

4,598

61

521

Buick Creek

4,048

39

444

Mitsue

299

468

46

392

Innisfail

246

415

21

308

Med River

145

1,095

29

284

2,412

42

283

239

33

11

253

2,393

239

208

110

11

230

1,633

58

221

Inga House Mountain* Marten Hills Meekwap Minnehik Niton* Elmworth Sylvan Lake Harmattan Elkton*

19

1,455

32

197

1,631

28

191

2

1,302

49

181

23

1,051

35

163

Midale*

127

23

129

Pouce Coupe

112

55

10

127

Other areas Total * Acquired in 1997

09

548

11,936

139

1,882

3,656

38,399

1,929

9,425

1997  

Annual Report

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