CALGARY — Players in Canada’s oilpatch are continuing to cut capital spending plans in the wake of this week’s sharp plunge in oil prices.
After markets closed Wednesday, Birchcliff Energy Ltd. said it would defer about $65 million or 19 per cent of its previously announced capital budget, dropping it to about $285 million.
The decision means it will postpone 10 oil wells that were to be drilled and brought on production in Alberta this year, resulting in average output of about 79,000 barrels of oil equivalent per day, down from the previous target of 81,000 boe/d.
Other companies that have cut budgets include Seven Generations Energy Ltd., which shaved its spending plan by $200 million or 18 per cent to $900 million, at the cost of about 15,000 boe/d of average production.
MEG Energy Corp. also cut its 2020 spending plan, dropping it to $200 million from the $250 million it announced in November. It cut its production guidance to about 94,000 barrels per day from 95,500 bpd.
Oilsands major Cenovus Energy Inc. had earlier trimmed its capital spending plan for 2020 to between $900 million and $1 billion, down about 32 per cent from earlier plans.
This report by The Canadian Press was first published March 11, 2020.
Companies in this story: (TSX:MEG, TSX:VII, TSX:BIR)
The Canadian Press