Tuesday, Baytex Energy Trust (BTE, BTE.UN) revealed an increase to its 2010 capital budget for exploration and development activities to $235 million from $165 million in 2009. Baytex also plans to convert into a corporation by the end of 2010.
The increase in budget is expected to help the company generate an average production rate of 43,500 boe/d in 2010, reflecting an organic production growth rate of approximately 4%, as compared to approximately 41,300 boe/d in 2009. Production is expected to be flat at fourth-quarter 2009 levels of approximately 42,500 to 43,000 boe/d during the early part of 2010 and to reach approximately 44,500 boe/d by the end of 2010.
Baytex Energy's 2010 production mix is forecast to be approximately 63% heavy oil, 17% light oil and natural gas liquids, and 20% natural gas.
About 60% of its 2010 capital program will be directed toward heavy oil operations, with the largest project being horizontal-well cold development at Seal in the Peace River oil sands. The company also plans developing its cold horizontal-well drilling in Lloydminster and a new SAGD well pair at Kerrobert in Saskatchewan. The balance capex spending will be focused on light oil and natural gas operations in the U.S. and Canada, with the largest project being Bakken/Three Forks light oil development in North Dakota. Other significant development projects are tight light oil development in the Viking and Cardium formations and light oil and natural gas conventional development in the Pembina area.
Baytex has also announced a distribution level of $0.18 per unit per month, a 50% increase from the current level of $0.12 per unit per month, payable on January 14, 2010 to unitholders on record as on December 31, 2009.
BTE is currently trading at $27.30, up $1.55 or 5.70%, on the NYSE., while the stock is gaining $1.55 or 5.70%, trading at $28.72 on the TSX.
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