FIELD OPERATIONS / Pan Canadian Reduces Capex Budget
PANCANADIAN PETROLEUM REDUCES 1998 CAPITAL SPENDING
CALGARY, May 26 /CNW/ - PanCanadian Petroleum Limited has reduced its
1998 capital spending budget by $90 million in response to the prevailing weak
prices for crude oil.
The revised $870 million capital spending program includes an ambitious
drilling program of about 1,075 wells, predominately in Western Canada.
PanCanadian is focusing on growing Canadian natural gas production in
preparation for pipeline capacity expansions that are set to come on stream
late this year to export and domestic markets. The Calgary oil and gas company
is also participating in four, high-impact, offshore exploration wells - one
off Nova Scotia and three in the Gulf of Mexico.
This budget reduction is focused on oil exploration and development in
Western Canada and was taken in recognition of the reduced profitability of
oil projects and to better align the company's capital spending with its
projected cash flow. PanCanadian will continue to manage capital spending in
light of the world oil price environment.
''PanCanadian continues to pursue a wide variety of profitable oil and
gas opportunities. We are particularly committed to growing natural gas
production and capitalizing on the favorable gas price outlook,'' said
Mackenzie Kwan, PanCanadian's Senior Vice President and Chief Financial
Officer.
PanCanadian is one of Canada's largest producers and marketers of crude
oil, natural gas and natural gas liquids. Its extensive exploration and
production activities stretch from coast to coast in Canada and include a
variety of international interests in the Gulf of Mexico, the United Kingdom,
Australia, South Africa and Venezuela.
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For further information: M.M.L. Kwan, Senior Vice President and Chief
Financial Officer; Alan Boras, Corporate Communications, (403) 716-4040; or
Carolyn Armitage, Investor Relations, (403) 290-2931
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