Zargon Oil & Gas Ltd. Provides Update on Little Bow Alkaline Surfactant Polymer Tertiary Oil Recovery Project; Announces Operating Results for the Fourth Quarter and Full Year 2013; Provides Production Guidance for the First Quarter of 2014
For the fourth quarter 2013, the company's oil and liquids production volumes averaged 4,625 barrels per day, a 4% decrease from 4,816 barrels per day in the prior quarter and two percent above production guidance levels of 4,550 barrels per day. The quarter over quarter reduction in oil production volumes was due in part to the effect of 360 barrels per day of fourth quarter property sales that reduced fourth quarter production volumes by 200 barrel of oil per day. Natural gas production volumes averaged 15.90 million cubic feet per day, a 3% decrease from the prior quarter rate of 16.46 million cubic feet per day and 6% above production guidance levels of 15.00 million cubic feet per day, due in part to prior period adjustments. On a combined basis, fourth quarter 2013 total production averaged 7,276 barrels of oil equivalent per day, a 4% decrease from the prior quarter's rate of 7,560 barrels of oil equivalent per day.
For the year 2013 fourth quarter, Zargon spent $12.6 million on field capital programs in addition to $11.7 million on the Little Bow ASP project. The quarter's drilling activity totalled 8.5 net wells and included 5.5 net conventional oil exploitations wells and 3.0 net wells at the Little Bow ASP project. Zargon spent $40.8 million on field activities and a further $35.3 million on the Little Bow ASP project. The capital expenditures included 16.6 net wells that resulted in 13.6 net oil exploitation wells at Taber, Bellshill Lake, Harmattan and Williston Basin properties and 3.0 net ASP related service wells at Little Bow.
For the first quarter of 2014, natural gas production is anticipated to average 14.0 million cubic feet per day, and calendar 2014's production forecast to average 13.5 million cubic feet per day although this estimate will depend on the magnitude and timing of the company's 2014 property disposition program.