Baytex Energy Corp. (NYSE:BTE) Q3 2019 Earnings Conference Call - Final Transcript
Nov 01, 2019 • 11:00 am ET
Edward D. LaFehr
year-to-date to CAD399 million.
Our diversified oil portfolio generated a corporate level operating netback, including hedging, of CAD29 per BOE, which is among our highest since 2014. Our Canadian operations generated an operating netback of CAD25 per BOE, while our Eagle Ford asset generated an approximate operating netback of CAD28 per BOE. During the third quarter, Canadian differentials remained tight, which contributes to strong price realizations. We also published our fourth corporate sustainability report this quarter, demonstrating our commitment to transparency and accountability and our progress in managing the environmental and social impacts of our business.
Over the past five years, we have reduced spill volumes by 76%. And this year, we established a greenhouse gas emissions reduction target with an objective of reducing our corporate emissions intensity by 30% by 2021. I am incredibly proud of the work our teams are doing on the safety and environmental front.
Let's turn our attention now to our operations, beginning with our light oil Eagle Ford and Viking assets. In the Eagle Ford, production averaged 37,000 BOEs per day, 77% liquids, during Q3 2019. We commenced production from 20 wells as compared to 29 wells during the second quarter. These wells generated an average 30-day initial production rate of approximately 2,100 BOEs per day per well, which represents a 20% improvement over wells brought on stream in 2018.
In the Viking, production averaged just over 22,000 BOEs per day with an operating netback of CAD41.60 per BOE, the highest in our Company. We maintained an active pace of development during the third quarter with 72.5 net wells drilled and 49.4 net wells brought on production. We currently have three drilling rigs and two frac crews executing our program, and expect to drill approximately 245 net wells this year.
As with all of our core plays, inventory enhancement continues to be a priority. We have completed multiple deals and swaps year-to-date, adding 220 net unbooked drilling opportunities. Moving to our heavy oil assets in Canada. Peace River and Lloydminster produced a combined 28,500 BOEs per day during the third quarter. In Q3, we drilled 20 net heavy oil wells, including four net multilateral horizontal wells at Peace River.
Our 2019 development program is strongly weighted, about 80%, to the second half of the year. As a result, heavy oil production is expected to increase to more than 30,000 BOEs per day during the fourth quarter due to the new well completions and the expansion of our Kerrobert thermal project.
Finally, in the east Duvernay Shale, we continue to advance the delineation of this early stage, high netback light oil resource play. To date, we have drilled seven wells at Pembina, which confirms the prospectivity of our acreage. Two wells brought on stream in 2019 generated an average 30-day initial production rate of approximately 1,050 BOEs per day per well at 75% liquids, and are in the top 15% of all wells drilled in the play.
The success of our drilling program in the