Lightstream Resources Ltd. is expanding its well optimization budget in its Bakken Shale business unit by $25 million and is deferring some drilling activity in its Cardium Formation business unit, the Calgary-based company said.

The company will defer drilling for the remainder of the year by a total of about 18 net wells, primarily in the Cardium unit, resulting in an expected total of 111 net wells drilled in 2013. Capital expenditures for 2013 are expected to be $700-725 million, compared with an original forecast of $675 million.

During a recent conference call, Lightstream executives reiterated 2013 annual average production guidance of 46,000-48,000 boe/d, reflecting growth of 8-12% over 2012 levels.

“As a result of the revisions to the capital program, we are holding our average production guidance unchanged for 2013 and reducing our exit production guidance by approximately 4% to 47,000-50,000 boe/d,” they said. “This slight reduction in exit rate incorporates the deferral of 18 wells from the drilling program, the majority of which were previously forecast to be brought on production in the fourth quarter.”

Lightstream’s experience in the Bakken allowed it “to hit the ground running in the Cardium,” the company said. Slickwater fracturing has reduced costs and improved productivity in the Cardium, and long-reach wells have reduced the environmental footprint and improved capital efficiencies. Average well costs have been reduced through monobore drilling and utilization of multi-well pads.

Lightstream changed its name from PetroBakken Energy Ltd. in May to better reflect its focus on developing light oil resource plays. PetroBakken was formed in 2009 through the $2.5 billion merger of Petrobank Energy and Resources and TriStar Oil and Gas Ltd. (see Daily GPI, Oct. 5, 2009).

Western Canada’s oil production should hit 5.7 million b/d by 2025, which is double the current output, boosted by unconventional growth from oilsands and shale formations, according to one recent analysis (see Shale Daily,March 28).