About half of CAD350 million capital program will support key initiative. The remaining capital is targeted at key assets across western Canada.
In 2009, the trust is planning to drill 122 gross wells on operated properties as compared to 191 gross wells that were planned under the $450 million capital expenditure guidance. Items that have been deferred until 2010 comprise of a 75 well shallow gas drilling program in the Brooks area, three horizontal wells in the Redwater area and four horizontal wells and two vertical wells in the Dawson area.
The trust is anticipating potential cost savings on the intended capital expenditures for the remainder of the year which, if realized, may create a chance to fund extra strategic projects. Additionally, the trust is now evaluating the Alberta government’s corporate royalty drilling credit program that was announced on March 3, 2009 in turn to assess the viability of additional capital programs using the revised royalty rates.
