ARC resources plans to grow its natural gas production in the Montney shale in 2016 as part of a $550 million capital spending plan.
The upstream oil and gas company will invest $100 million in its Montney holdings, according to a release Wednesday.
According to the Calgary Herald, the company budgeted $1.04 billion in capital spending last year. ARC was the first major Calgary company to announce its 2016 plan. The company posted a $235 million loss in the third-quarter.
"In 2016, we expect to deliver approximately five per cent annual production growth relative to 2015 levels, set the stage for continued development at Dawson in 2017 and beyond, and continue to pay a meaningful dividend to our shareholders," the release states.
Also on the docket is $90 million in infrastructure spending "to proceed with plans for the new gas processing and liquids handling facility at Dawson."
That facility, expected on-stream in late 2017, will have a gas processing capacity of 90 million cubic feet (MMcf) per day and 7,500 barrels per day of liquids-handling capacity.
"Gas production is expected to ramp up over the fourth quarter of 2017, however liquids production will be below capacity until wells with higher liquids-content are drilled," the release states.
Of 77 planned wells, nine liquids-rich wells are planned in the Dawson, Parkland, Attachie and Pouce Coupe gas fields. Another 14 are planned for the Dawson and Sunrise areas. Fifty-two wells will be crude oil wells.
The company is banking on $55 per barrel oil and $2.50 per gigajoule of natural gas.
Unlike some upstream companies in Northeast B.C., drilling is not tied to a specific liquefied natural gas project.
Seventy-five per cent of ARC's capacity goes to the AECO hub in southern Alberta, 20 per cent to Station 2 south of Fort St. John, and around five per cent to the Alliance pipeline system.