ARC has traditionally executed a disciplined and successful capital program and our 2008 program was no exception. For the first time in ARC’s history we replaced significantly greater than 100 per cent of production without relying on acquisitions – a great achievement for the Trust.
EXPLORATION, EXPLOITATION AND DEVELOPMENT CAPITAL
UNDEVELOPED LAND PURCHASED AT CROWN LAND SALES AND THROUGH ACQUISITIONS
total capital expenditures INCLUDING net aquisitions
ARC prides itself on its exceptional assets and the many
opportunities embedded in them. Beyond our excellent base
64,000-65,000 boe per day based on our existing assets and
operations with over 1,600 identified drilling locations, we
internal drilling activities and a $450 million capital program.
believe there is significant unrecognized value embedded
With the continued deterioration in commodity prices,
in ARC’s tight gas resource play in the Montney formation in
especially for natural gas, this capital program is under review
northeastern British Columbia and possibly through enhanced
with the potential for actual capital expenditures to be
oil recovery using CO2 injection. We made important progress
materially lower than $450 million. It is not currently known how
on both initiatives in 2008 as highlighted in our focus areas
that would affect actual production volumes for 2009 but they
update. With time, technology, and the efforts of our technical
would likely be lower than 64,000 boe per day.
team we expect to continue unlocking significant value for our investors.
Capital Expenditures ARC invested a record $548.6 million (before net aquisitions) dollars on capital development in 2008, drilling a total of 232
ARC’s production volumes averaged 65,126 boe per day
gross wells (178 net wells) on operated properties with a 99 per
in 2008 – a record for the Trust. Volumes were four per cent
cent success rate. ARC also participated in the drilling of 238
higher than last year’s production of 62,723 boe per day and
gross wells (31 net wells) drilled by other operators. Our capital
above our year-end 2007 forecast of 63,000 boe per day.
Record volumes are attributed to a combination of the
production through our internal drilling and optimization
Trust’s active drilling program and significant growth in gas
activities. Approximately $305 million was spent on drilling and
production in the Dawson area. ARC’s production fluctuates
completion activities on ARC’s properties. The ability to sustain
during the year, typically peaking in the first and fourth
our production each year speaks to the quality of our assets
quarters and declining in the second and third quarters
and the ability of our technical team to exploit the opportunities
depending on the timing of new wells coming on and
associated with our properties.
closures of facilities for maintenance. For 2009, ARC is currently