Bonanza Creek to Spend $80M in South Arkansas

Bonanza Creek of Denver announced last week that it would invest $80 million through 2014 to drill around 50 natural gas wells in south Arkansas.

According to a release, the wells will be drilled in the McKamie Patton and Dorcheat-Macedonia fields, which are located in Columbia and Lafayette counties.

Infrastructure projects and saltwater disposal wells will account for an additional $4.5 million of planned capital.

“Favorable results from testing multiple horizons and extended reach laterals in Wattenberg and five-acre spacing in Arkansas have been incorporated into the 2014 capital program,” CEO Michael Starzer said in a release. “Bonanza Creek is well positioned to execute the next phase of development demonstrating the company’s high growth and value creation trajectory for our owners.”

The company is planning to increase its overall production in 2014, producing between 23,000 and 25,000 barrels of oil equivalent per day, or 44 to 56 percent higher than 2013’s top end guidance.

Its total capital expenditures for 2014 are expected to be between $575 million and $625 million.