Natural gas company with major interest in SE Alberta scales back capital plans as prices drop

By Medicine Hat News on December 4, 2024.

@MedicineHatNews

Pine Cliff Energy has pulled back on capital spending this year as natural gas prices have fallen, the company’s updated guidance states.

The company that has major bases of operation in Alberta’s southeast, plus the Viking and Caroline areas, spent about $5.5 million on new wells and closures during the first nine months of the year, it stated on Nov. 13.

That compares to $34.4 million in the first nine months of 2023 and a budget of $17.5 million in well completions and well abandonments in 2024.

“Pine Cliff had designed its 2024 capex budget to be adaptable, and is now deferring its development program into 2025,” reads a statement.

The company expects to meet its current year production guidance of about 23,500 barrels of oil equivalent, including one-fifth as liquids, in 2024.

About 44 per cent of its gas production is hedged at $2.44 per 1,000 cubic feet through the end of the fiscal year.

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