Natural gas development in Western Canada’s Montney and Duvernay formations is set to increase by double-digits in 2024 for Calgary’s Whitecap Resources Inc., as LNG opportunities begin to emerge.

The independent, which reports in Canadian dollars (C$1.00/US75 cents), has set a preliminary 2024 capital expenditure (capex) budget that is 26% higher year/year. The high end of the capex is set at $1.2 billion, versus an estimated $950 million for this year. 

About $600 million is earmarked to expand drilling in the natural gas-rich formations, where new well locations have been identified on 700,000 acres that mostly were acquired in 2022 with the $1.9 billion takeover of ExxonMobil affiliates.

Another $500 million would extend production...