Courtesy of Benzinga.
Petroleum Development Corporation (Nasdaq: PETD) today announced the Company has expanded its 2011 capital budget and increased production guidance for the year. PDC also increased its horizontal Niobrara drilling inventory and reported continued success in its horizontal Niobrara and Marcellus Shale plays.
2011 Capital Budget
PDC recently approved an increase in the Company’s 2011 developmental capital budget from approximately $206 million to $293 million. The majority of the additional capital will be allocated to the liquid-rich Wattenberg Field, including an expansion of the horizontal Niobrara program, and the Permian Basin. The Company plans to drill a total of 147 vertical wells and 25 horizontal wells (16 Niobrara, 9 Marcellus) as well as execute on 181 refracs and recompletes under its expanded 2011 capital program.
In addition to the new developmental capital budget, $73 million is expected to be invested in partnership repurchases and $31 million is budgeted for exploration, leasehold and other miscellaneous capital expenditures for 2011. The total capital budget for 2011 is now $397 million.
2011 Production
The Company expects 2011 production to grow approximately 24% from 2010 production of 37.6 billion cubic feet equivalent (Bcfe) to 46.5 Bcfe. This production growth exceeds prior 2011 guidance of 44.9 Bcfe, and is expected to come from the Wattenberg Field including the horizontal Niobrara development, Permian Basin and Marcellus Shale development, as well as from the partnership repurchase program.
