Parallel Energy Trust (TSX:PLT.UN)(TSX:PLT.DB) ("Parallel" or the "Trust") today announced its estimated production results for the fourth quarter and full year 2013, the commencement of its 2014 drilling program and its estimated year-end debt.
During the fourth quarter of 2013, Parallel recorded average daily production of approximately 7,250 boe/day based on field data. This results in 2013 estimated average daily production of approximately 7,150 boe/day, an increase of over 20% compared to the Trust's average daily production in 2012. Parallel's estimated fourth quarter and annual production levels both exceeded the Trust's 2013 average daily production guidance of 7,000 boe/day. The Trust also achieved its recently increased 2013 exit rate production guidance of 7,300 boe/day.
The oil and gas industry in Texas was negatively impacted by severe winter weather during the months of November and December. Although these weather conditions had an adverse effect on the Trust's production during the quarter, Parallel's operating team responded quickly and was able to mitigate the impact, keeping average production levels within the Trust's contingency for downtime of three to five per cent.
Parallel has commenced its 2014 drilling program with the spud of its first well on January 6, 2014. The Trust is currently operating one drilling rig in the Carson operating area and plans to drill up to 14 wells during the year.
Parallel estimates that its bank debt was approximately US$154 million as of December 31, 2013. This results in US$36 million of availability on the Trust's bank facility of US$190 million and represents bank debt reduction of approximately US$4.2 million during the fourth quarter of 2013.
"For the second time in 2013 our operating team demonstrated our ability to effectively manage our assets during periods of extreme weather conditions," explains Rick Alexander, Parallel's President and CEO. "As a result, we realized strong average production levels in the fourth quarter and we achieved record annual production for 2013. We also continued to improve our financial flexibility by further reducing our outstanding bank debt. Moving ahead, we are happy to have commenced our 2014 drilling program and we look forward to providing updates on our drilling results."
Source: Marketwire