Parallel Energy Trust Announces Board Changes; Provides Operating and Financial Guidance for 2015
For 2015, the company board of directors has approved a capital budget of USD 10.5 million. The Trust's 2015 cash flow guidance is based on a WTI oil price of USD 80.00/bbl, a NYMEX natural gas price of USD 4.00/mcf and an average natural gas liquids price of 45% of the USD 80.00/bbl WTI oil price. Based on the Trust's 2015 production guidance and other assumptions, 2015 cash flow is estimated to be approximately CAD 37 million.
The principal drilling and operating assumptions underlying this guidance are that the company will drill, complete and tie-in nine gross wells for a total cost of USD 6.8 million. Parallel plans to drill and complete single lateral development wells in the Carson and Sneed operating areas using the Trust's proven drilling techniques. The average 30 day initial production rate is expected to be 50 boe/day per well, resulting in drilling efficiencies of approximately USD 15,000 per flowing boe/day; Based on this level of spending, the company expects to achieve an annual average daily production rate of approximately 7,100 boe/day in 2015, consistent with actual production in 2013 and expected full year production in 2014.