Paramount Resources Ltd. is the latest Calgary-based energy company to announce it is slashing its capital spending this year in response to the recent significant decline in global energy prices.
The company said on Thursday that it has revised its 2020 capital guidance to a range of $185 million to $250 million, a reduction of approximately 46 per cent at mid-point from the originally planned range of $350 million to $450 million.
“The revised capital plans remain focused on the Company’s liquids-rich Montney assets in the Grande Prairie Region. The Company will closely monitor commodity prices and market conditions as the capital program progresses and continue to aggressively pursue cost reduction opportunities. Paramount can further adjust its spending plans, if required, to prudently manage its capital resources,” it said.
Paramount said forecast average sales volumes for 2020 under the revised capital guidance are expected to range between 70,000 Boe/d (barrels of oil equivalent per day ) to 75,000 Boe/d (41 per cent liquids), a reduction of approximately six per cent at mid-point from the originally forecast range of 75,000 Boe/d to 80,000 Boe/d.
Paramount is an independent, publicly traded, liquids-focused Canadian energy company that explores for and develops both conventional and unconventional petroleum and natural gas reserves and resources, including longer-term strategic exploration and pre-development plays, and holds a portfolio of investments in other entities.
