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Petro Andina 2008 capex to hit US$148mn
Source: Bnamericas
Date: 03/11/2008 00:00
Calgary-based Petro Andina Resources (TSX: PAR) has budgeted US$148mn for capex in 2008, Petro Andina CFO William Hogg told BNamericas.
All of the company`s production comes from its 297,000 acre (120,192ha) net land position in the Argentina`s Neuquén basin. The company produces high-diesel yield crude and sells all production on the domestic market.
The capex budget includes US$63.7mn that will be spent on development drilling, US$4.3mn for appraisal drilling and US$9.6mn for exploration drilling.
The company will invest US$35.5mn on infrastructure that includes field facilities and US$12.7mn to complete a pipeline to ship crude to market.
A new thermal pilot project for thermal recovery will receive US$4.8mn, Hogg said.
Petro Andina will drill 195 development wells in 2008. The company had 165 producing wells and 13 injector wells in 2007. With the new development wells, the company plans to end 2008 with 280 producing wells and 95 injectors.
The company produced 6,800b/d of net production in 4Q07 and is producing more than 8,000b/d. Full 2007 financial results will be released on March 13, Hogg added.
Petro Andina trucks all produced crude to market, but the new pipeline is expected to reduce costs. The company now pays US$2.50/b to truck the crude, but the transport cost will decrease to US$0.20/b when the pipeline begins operations.
The pipeline will allow Petro Andina to continue shipping crude to Argentina`s coast or to begin oil shipments north to a regional refinery, Hogg added.
The company announced in January a JV agreement with Voyager Energy for exploration in Trinidad & Tobago.

