Paramount to push ahead with $130M capex despite low gas prices … - Oilweek Magazine

UN) intends to push ahead with its full capital spending budget for 2007 despite lower natural gas prices which pushed profit down 72 per cent in the second quarter. More than 80 drilling prospects, largely low exposure exploration in northeast or east-central Alberta, are &#147ready to go,&#8216&#8216 said Rose, adding that a service rig is going on a continual basis to reconnect another 45 wells. Weak natural gas prices and continued uncertainty as to when those prices will strengthen have led to many companies holding back from developing assets _ especially in Alberta, where Paramount&#8216s operations are focused. Higher storage costs for North American natural gas inventories and a soaring Canadian dollar forced Calgary-based Paramount to cut its monthly distribution in July to 10 cents per unit from 14 cents. On Thursday, some oilpatch drilling companies reported weak results because of the slumping gas drilling business. Some players with a more diverse asset energy base have been able to temporarily shelve their gas projects and focus on oil-weighted projects which are currently getting higher prices. read more

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