The board of directors of Calgary-based Atlas Energy Ltd. said it has approved an exploration and development capital program of approximately C$29 million in 2003, which represents an increase of C$8 million from its previously announced 2003 budget released on Dec. 9, 2002.

Atlas said the C$8 million increase is due to the drilling of an additional 13.8 net wells in the Southern Alberta and Dawson areas of Alberta and additions to the company’s undeveloped land expenditures.

In Southern Alberta, the company said it expects to drill an additional 8.3 net wells predominantly in the Long Coulee area targeting medium depth natural gas prospects. In Dawson, Atlas said it hopes to drill an additional 5.5 net wells in the Slave Point oil trend. The company noted that it has recently signed an agreement with a major oil and natural gas company to farm-in on approximately 90 sections of land in the Dawson area.

Atlas’ 2003 capital program is expected to be spread out over four focus areas including:

Of the 46 wells Atlas expects to take part in over 2003, the company said the net-to-the-company will be 37.4 wells. Atlas estimated first quarter 2003 capital expenditures to be C$11-12 million.

“By forecasting decline rates from current production and risking the success and expected production rates from its 2003 drilling program, Atlas now estimates 2003 average production volumes to range from 11- 12 MMcf/d of natural gas (previously 9-10 MMcf/d) and 900- 1,100 b/d of oil and liquids (previously 800-1,000 b/d), representing approximately a 70% increase over average 2002 production on a BOE basis,” Atlas said

The company noted it is currently producing 10.5 MMcf/d of gas and 550 b/d of oil and liquids. Atlas added that it has recently entered into a costless collar transaction for 3 million GJ per day of natural gas. The transaction fixes the price for those volumes at a range of C$5.50 per GJ to C$7.25 per GJ from April 1 to Oct. 31.

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