Chaparral announces plans for 2019

Chaparral Energy Inc. said Tuesday it will cut the number of rigs it is running in 2019 by one but will substantially increase the amount of oil and natural gas it produces.

Total daily production for 2019 is expected to average between 25,000 and 27,000 barrels of oil equivalent, with most of that — between 21,000 and 23,000 barrels per day — coming from its STACK play wells in northwest Oklahoma, representing a yearover-year growth rate of between 45 to 49 percent.

Other operational updates Chaparral provided Tuesday include plans to spend between $275 million and $300 million in 2019, with between $210 million to $225 million of that allocated for drilling and completion expenses. The company reported it plans to reduce the number of rigs it has contracted to drill wells from four to three in the second quarter of the year, after it has wrapped up ongoing spacing tests in Kingfisher and Canadian counties.

“This strategic reduction will allow us to lower our capital budget, while still competitively growing production,” CEO Earl Reynolds stated in the update release.

“Last year was a truly remarkable year. From achieving record STACK production to lowering our overall cost structure and enhancing our liquidity through our bond offering, Chaparral continues to set itself apart as a premier operator.”

The company is scheduled to report its fourth-quarter and full year results for 2018 on March 14.