Paramount sets quarterly production record, builds Montney position
Canadian producer Paramount Resources said November 2 it had record quarterly production in Q3 2023 and had expanded its position in the prolific Montney fairway with the acquisition of 10 net sections near Grande Prairie.
Third quarter sales volumes averaged 98,644 barrels of oil equivalent (boe)/day, up from 97,601 boe/day in Q3 2022. Production in its core Grande Prairie region increased to 74,381 boe/day from 65,981 boe/day. Natural gas sales for the quarter averaged 323.1mn ft3/day, up from 315.9mn ft3/day.
Net income in Q3 2023 fell to C$87.2mn from C$221.9mn in the same period a year ago, while cash from operating activities declined to C$207.6mn from C$248.9mn. Free cash flow dropped to C$18.5mn from C$137.5mn.
Paramount expanded its core operating area in the Grande Prairie region with the addition of 10 net sections (6,400 net acres) at Karr and Wapiti and disclosed an additional 10 net sections that had been added at Wapiti but had been held as confidential.
Paramount’s active Grande Prairie exploration programme in Q3 included nine net wells drilled, five net wells completed and eight net wells brought on production.
Its 2024 budget guidance forecasts C$425mn of spending in the Grande Prairie region, with C$185mn at Kaybob in the Duvernay and C$250mn in Central Alberta and elsewhere.