75% for development activities, including 50% for low-risk development drilling in onshore North American core areas and 25% to develop the South Coast Gas (South Africa) and Oooguruk (Alaska) projects
By accelerating development drilling in core areas, Pioneer grew 2006 North American production by 12% from equivalent volumetric production payment adjusted 2005 levels.
The 2007 capital budget calls for approximately 35 wells to be drilled in the Edwards Trend, including infill drilling in the Pawnee field and more aggressive fracture stimulation of several existing wells.
JED has not made direct property acquisitions; rather it develops properties with other oil and natural gas companies under joint venture/farm-in arrangements in which JED finances the cost of development drilling in exchange for interests in the revenue generated by the properties.
JMG has made direct property acquisitions and develops the oil and natural gas properties of others under arrangements in which JMG finances the cost of exploration drilling in exchange for interests in the oil or natural gas revenue generated by the properties.
At Granlea in southern Alberta, we continue to evaluate our proprietary 3-D seismic and remain optimistic that we will be drilling in
the area later this year.
As an active participant in the leasing and drilling in
this region, Meridian has received support of the State of Louisiana with its permits and has been granted 8 permits to drill with the expectations of continuing permitting that will allow it to continue to utilize at least one to two drilling rigs in the BML area on an ongoing basis during the balance of 2005.
The second well in the program targets shallower intervals, has a projected drilling cost of C$700,000 in which the Company has a 100% working interest, and is expected to commence drilling in
mid-February and take approximately 10 days to reach target depth.
This is the first of 7-9 wells expected to be drilling in
this prospective area with the drilling rig that drilled the BML 28-1 well being mobilized to the second location in the Hornets Nest prospect.
10 well, it is anticipated that the rig will move to the Company's Biloxi Marshlands project area bringing the number of rigs drilling in
this area to three by the fourth quarter.
An additional $8 million will be spent in Malaysia/Vietnam reflecting follow ups on successful drilling in
PM-3 CAA as well as changes and additions to ongoing exploration and appraisal drilling in
other core areas.
This initiative has allowed us to proceed with a multi-well drilling program in Western Canada targeting high impact drilling in newly established high working interest areas, including the Ladyfern, Chinchaga and Pine Creek areas in Alberta.
0 tcf and our first "Mariner" well is expected to commence drilling in early 2003.
The agreement includes a commitment for drilling earning wells over the next two years, with an option to earn additional sections through additional drilling in the third year.
Grad & Walker is currently producing 17 million cubic feet per day and 644 barrels of liquids per day from the Three Hills Creek area and has had a 70 percent success rate in the area since it began drilling in November of 1995.