Substantially all of our capital expenditures are on the Wapiti Montney play. The Wapiti Montney play has natural gas production with significant condensate which is a key driver of the economics. Condensate is blended with production from Alberta’s oilsands to reduce the viscosity to a level that meets the requirements of export pipelines. The growing impact of condensate production on our corporate production mix and revenue is evident in our quarterly production and financial results. Condensate sales account for more than 60 percent of NVA revenues.
Our near term focus remains on delivering immediate results in a disciplined manner while advancing our Wapiti Montney condensate-rich natural gas resource play that has strong economics and significant upside potential even in a low commodity price environment. Our current business plan involves the focused development of our Montney condensate-rich natural gas projects to deliver near and long term operating and financial results.
Our core operating areas of Wapiti and Pipestone in the Montney formation is located near the City of Grande Prairie, Alberta, approximately 600 kilometers northwest of Calgary. This operating area continues to play the fundamental role in our future growth with substantially all our projected 2022 capital budget expected to be spent in this region. Read More