OIL - Kiwetinohk announces CEO's Letter to Shareholders accelerated capital plan increases to its credit facilities and the filing of a renewal base shelf prospectus | Benzinga

CALGARY, AB, May 27, 2024 /CNW/ - Kiwetinohk Energy Corp. (TSX:KEC) ("Kiwetinohk" or the "Company") is pleased to announce the issuance of the Chief Executive Officer's Letter to Shareholders, an accelerated upstream capital spending program, a renewal and $25.0 million increase to its revolving credit facility, a renewal and $50.0 million increase to its Letter of Credit facility and the filing of a renewal base shelf prospectus.

"I am pleased to provide an updated letter to shareholders outlining some core elements of our strategy and how upstream, power and carbon capture and storage all fit within our scope of business. Within my letter I describe components of our energy transition strategy and discuss the possibility that the power generation and carbon capture assets should be held in a separate corporate entity; Kiwetinohk's views on capturing and financing the energy transition investment opportunity; the main activities we have undertaken to secure and maintain our social license to operate; and how the Company is modifying well designs to add value to our upstream operations. The full letter is available on SEDAR+.

The Company has continued to achieve exceptional performance in our upstream business when compared to our 2024 operational goals. Given the strength of the Company's balance sheet, increased lending support from our banking syndicate, and confidence in our ability to execute Kiwetinohk's strategic plans as supported through a robust hedging program, the Board of Directors has approved the acceleration of 2024 capital expenditures to bolster 2025 production and lay the foundation to achieve our targeted 40,000 boe/d of upstream production in 2026 and sustaining it thereafter." said Pat Carlson, Chief Executive Officer.

Kiwetinohk has announced an accelerated capital program in response to success achieved with the 2024 capital and operating program to date, strong liquids commodity prices and continued balance sheet strength. In combination with revising its development program, the Company has accelerated completion of the three well 9-11 Duvernay pad into late Q4 2024, redeploying the capital from a planned single Montney well in Placid to a new three well pad in Simonette which includes the drilling of two additional Duvernay wells and one Montney well. 

The revised capital program is expected to have limited impact on 2024 production, however this acceleration in development activity is expected to increase average 2025 production by approximately 3 Mboe/d, or ~10% from previous estimates. The accelerated program is forecast to increase capital spending by approximately $45 million in 2024 from previously disclosed guidance levels and results in a 17 well drilling program being executed during 2024.

Kiwetinohk's updated 2024 capital guidance is provided below. All other financial and operational results have remained consistent with previously disclosed guidance.

Kiwetinohk's bank lenders, which include Bank of Montreal as lead lender and agent ...

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