Laredo Petroleum, Inc. (LPI) (“Laredo” or the “Company”) will host an investor meeting today in Houston, TX to discuss the Company`s business strategies, details on key projects and plans for growth.
- Announced preliminary production volumes of 4.27 million barrels of oil equivalent (“MMBOE”) for the first quarter of 2015, a Company record and an increase of approximately 47% from first-quarter 2014
- Updated production guidance for full-year 2015 to a range of 15.6 MMBOE to 16.0 MMBOE, an expected increase of approximately 13% to 16% from 2014
- Released initial type curves for 10,000-foot horizontal wells in the Upper and Middle Wolfcamp and Cline shale zones of 1.1 MMBOE, 1.0 MMBOE and 1.0 MMBOE, respectively
- Announced an inventory of 4,865 de-risked horizontal drilling locations
- Reduced well cost estimates for multi-well pads to approximately $5.9 million, $6.1 million, $6.2 million and $6.5 million for the Upper, Middle and Lower Wolfcamp and Cline shale zones, respectively
“In 2015, Laredo has built upon the progress we made last year in our full-scale development plan for our Permian-Garden City asset,” commented Randy A. Foutch, Laredo Chairman and Chief Executive Officer. “We continue to leverage our proprietary database to create value through development and discovery, with more than 4,800 de-risked horizontal locations identified, including locations added from the Canyon formation, where the Company recently completed a successful horizontal discovery well. We believe this large inventory in a premier basin coupled with lower well costs, the ability to drill 10,000-foot laterals on our contiguous acreage base, our investments in infrastructure and the ability to optimize development with our Earth Model, position us to bring forward value in a capital efficient manner as margins improve.”
The table below reflects the Company`s guidance for full-year 2015:
|Production (MMBOE)||15.6 – 16.0|
|Crude oil % of production||50%|
|Natural gas liquids % of production||25%|
|Natural gas % of production||25%|
|Price Realizations (pre-hedge):|
|Crude oil (% of WTI)||~85%|
|Natural gas liquids (% of WTI)||~25%|
|Natural Gas (% of Henry Hub)||~70%|
|Operating Costs & Expenses:|
|Lease operating expenses ($/BOE)||$6.75 – $7.75|
|Midstream expenses ($/BOE)||$0.40 – $0.50|
|Production and ad valorem taxes (% of oil and gas revenue)||7.75%|
|General and administrative expenses ($/BOE)||$6.00 – $7.00|
|Depletion, depreciation and amortization ($/BOE)||$18.75 – $19.75|
As previously announced, the Company is having ongoing discussions regarding a joint development opportunity involving a portion of its northern Permian-Garden City properties as well as additional operational locations in its southern area. The Company has received significant interest and will continue to pursue discussions and negotiations associated with such drilling fund opportunities. There can be no assurance, however, that any transaction will occur.
Investor Meeting Webcast
The presentation will be webcast and is open to registrants of the conference. The Company will also make the link to the webcast and its presentation available to the public on its website,www.laredopetro.com, beginning at 1:30 p.m. CT today. A replay of the presentation will be available on the Company`s website for approximately 30 days following the event.
Laredo Petroleum, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma. Laredo`s business strategy is focused on the acquisition, exploration and development of oil and natural gas properties primarily in the Permian Basin in West Texas.
Additional information about Laredo may be found on its website at www.laredopetro.com.