(MENAFN- ProactiveInvestors) () which is focused on west central Alberta and northeastern British Columbia lowered its 2015 spending budget guidance by 29 percent and its produciton view by 3 percent in response to a steep decline in crude prices. Shares fell.
Kelt’s 2015 spending budget guidance is now expected to be C$152 million down from the previous guidance of C$215 million the Calgary Alberta-based company said in a statement today.
The estimated average daily production for 2015 was lowered to 16600 boe/d compared to previous guidance of 17200 boe/d.
Kelt estimates WTI crude oil to average $59.50 per barrel in 2015 down 25 percent from its previous estimate of $79.50 per barrel and estimates AECO natural gas to average $3.10 per GJ down 10 percent from its previous estimate of $3.45 per GJ.
The company’s bank debt net of working capital as of December 31 2015 is forecasted to be approximately $172 million compared to previous guidance of $190 million.
Kelt said its current credit facility allows for borrowings of $235 million leaving the company with “significant” unused bank lines as of December 31 2014.
Shares decreased 5.6 percent to C$6.30 at 2:36 p.m. in Toronto. The stock has lost more than half its value in the past six months.
The company said its 2014 capital expenditures are estimated to be approximately $426 million compared to previous guidance of $428 million.
Oil has fallen by more than half since June as the U.S. pumped at the fastest pace in more than three decades and the Organization of Petroleum Exporting Countries resisted calls to reduce production. Group and Societe Generale were among banks to reduce their price forecasts last week.
WTI for February delivery which expires today decreased 4 percent to $46.75 a barrel at 1:11 p.m. on the New York Mercantile Exchange. Brent for March settlement fell 0.4 percent to $48.65 a barrel on the London-based ICE Futures Europe exchange.
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