Capex Data
Parallel's 2008 capital investment budget is approximately $127.2 million, which includes approximately $108.8 million for the drilling and completion of approximately 108 gross (63.6 net) new wells and the workover or conversion-to-injection of 67 gross (49.4 net) existing wells and approximately $18.4 million for the purchase of leasehold and seismic data. On a project basis, approximately $100.0 million, or 79%, of the 2008 capital investment budget is expected to be invested in the Company's two horizontal drilling gas projects. Parallel has budgeted approximately $60.0 million for its Barnett Shale Gas project and approximately $40.0 million for its New Mexico Wolfcamp Gas project. Additionally, the Company expects to invest approximately $24.5 million, or 19%, of the 2008 budget in its long-life, shallow oil properties located in the Permian Basin of West Texas. The remainder of the 2008 budget will be allocated to the Company's other projects. Parallel anticipates that the $127.2 million 2008 capital investment budget will be funded from its operating cash flow and revolving credit facility. At December 31, 2007, approximately $140.0 million was available under the Company's revolving credit facility.
Revised 2008 Capital Investment Budget
August 2008 - Parallel has increased its 2008 capital investment budget approximately 35% from $127.2 million to approximately $171.6 million, excluding approximately $43.2 million for property acquisitions made during the second quarter of 2008. Of the $44.4 million increase, $14.0 million is for leasehold costs in the Barnett Shale; $24.2 million for leasehold costs and 9 additional wells in the New Mexico Wolfcamp Northern and Southern Areas and additional interests acquired in the Northern Area, as is discussed in the New Mexico property information below; $2.2 million for drilling and completion activities associated with the Company's increased interests in its Diamond M project related to a recent acquisition, as was announced on June 26, 2008; $1.7 million for the drilling of 3 additional wells in the Harris San Andres project; and $2.3 million for leasehold and the drilling of 1 new well in the Company's East Texas Cotton Valley Reef project.
The revised budget provides for approximately $133.8 million for the drilling and completion of approximately 121 gross (77.8 net) new wells: the workover of 53 gross (44.2 net) existing wells; and the conversion-to-injection of 14 gross (12.1 net) producing wells; and approximately $37.8 million for the purchase of leasehold and seismic data. As of June 30, 2008, Parallel had invested approximately $82.6 million of the $171.6 million budget in the drilling of approximately 59 gross (30.57 net) wells, including 33 gross (15.19 net) wells that were in progress as of June 30, 2008, and leasehold, seismic, workovers, and conversions-to-injection.
On a project basis, approximately $138.2 million, or 81%, of the 2008 capital investment budget is expected to be invested in the Company's two horizontal drilling gas projects. Parallel has budgeted approximately $74.0 million for its Barnett Shale Gas project and approximately $64.2 million for its New Mexico Wolfcamp Gas project. Additionally, the Company expects to invest approximately $28.4 million, or 17%, of the 2008 budget in its long-life, shallow oil properties located in the Permian Basin of West Texas. The remainder of the 2008 budget will be allocated to the Company's other projects.
Parallel anticipates that the $171.6 million 2008 capital investment budget will be funded from its operating cash flow and revolving credit facility. At June 30, 2008, approximately $93.0 million was available under the Company's revolving credit facility.
Future Plans
No data yet.