CALGARY, April 9, 2019 /CNW/ – Jupiter Resources Ltd. and its affiliates (collectively, “Jupiter” or the “Company”) announced today a revised 2019 guidance, reducing planned capital expenditures from $190-210 million to $150-160 million.
Jupiter has scaled back its 2019 capital program in response to the continued weak outlook for AECO natural gas prices. “We are concerned that the issues that have plagued Western Canada for the last two summers and which led to distressed Alberta gas prices will persist, so we have chosen to defer growth initiatives until these issues are addressed,” said Simon Bregazzi, Jupiter’s CEO.
Late in 2018, the Government of Alberta’s Natural Gas Advisory Panel released their report titled Roadmap to Recovery: Reviving Alberta’s Natural Gas Industry (the “Report”; https://open.alberta.ca/publications/9781460141915). “The issues facing Alberta’s natural gas sector and the associated options to resolve them are complex. We applaud the effort and 48 recommendations included in the Report, but now we need to act and address the issues that have severely impacted the health of our industry”, stated Simon.
The Report takes a holistic look at Alberta’s natural gas industry, the regulatory framework, associated transportation network and future expansion opportunities. It includes a comprehensive list of near-term and longer-term recommendations which provide actionable steps that the regulator (National Energy Board), TransCanada, industry and the governments at both the Federal and Provincial level can immediately undertake to address the situation that has suppressed the natural gas industry for the past 3 years.
As the Report states, “we must act strategically and with conviction to capture our share of both continental and global natural gas markets“. The Report also highlights that “Canada has an opportunity to be a leader in the global shift to natural gas helping the world meet its climate objectives“. Further, “Canada, Western Canada, and Alberta would benefit from a united, cohesive, and actionable vision for natural gas.” However, “for Alberta to compete successfully in proposed LNG projects, the systemic challenges surfaced in this report must be resolved.“
“We at Jupiter are committed to doing our part and look forward to working with the Government of Alberta, our peers and other stakeholders to enact the Report’s recommendations”, stated Simon.
Updated 2019 guidance has been posted on the Company website.
Jupiter is an independent Calgary-based energy company with an operations office in Grande Cache, Alberta. The Company is focused on the acquisition, development and production of unconventional liquids-rich natural gas properties in the Western Canadian Sedimentary Basin. For more information visit: www.jupiterresources.com.