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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.

Total spent

Total spent

Total spent

$427

$173

$599

EXPLORATION, EXPLOITATION AND DEVELOPMENT CAPITAL

UNDEVELOPED LAND PURCHASED AT CROWN LAND SALES AND THROUGH ACQUISITIONS

total capital expenditures INCLUDING net aquisitions

million

million

million

ARC prides itself on its exceptional assets and the many

forecasting

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.

Production

average

production

volumes

of

between

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.

program

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.

replaced

a

record

248

per

cent

of

ARC’s

closures of facilities for maintenance. For 2009, ARC is currently

VALUE.

ANNUAL 2008

14

2008  

Annual Report

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